Irish Budget 2027: What to expect

When is the budget?

The Irish Budget 2027 will be delivered on Tuesday, 6 October 2026 by both Tánaiste and Minister for Finance Simon Harris and Minister for Public Expenditure Jack Chambers

It is Harris’ first budget as Finance Minister. Budget 2026 left many workers worse off after inflation because income tax bands did not change. That background is shaping much of what is expected this time.

The Summer Economic Statement, published in July 2026, set the frame. Day-to-day spending and new infrastructure investment will rise by €7 billion to more than €125 billion. About €1.5 billion is set aside for tax changes.

What to expect in the budget

Income tax band changes

Harris has said a personal income tax package is coming.

His main target is the point where workers start paying the higher tax rate. That band is now €44,000. He has said that is too low, since it was €33,000 in 2015. For payroll teams, this is the change most likely to mean an update for the new tax year.

Inheritance tax and CAT threshold reform

Inheritance tax is back on the agenda. Micheál Martin and Harris have both said the current system is unfair. Harris has also suggested a rise in the CAT threshold for children towards €500,000.

A wider change for people without children who want to leave assets to nieces, nephews, or other family members has reportedly been put on hold, however finance officials are concerned that it will carry a significant cost to the exchequer in terms of the overall package. This is still a live issue for family businesses and private clients planning succession.

A new personal investment account

The government’s long-promised state-backed savings and investment scheme is expected to be finalised in this budget. The plan would have no entry or exit tax on investments made through the account, with a flat yearly tax above a limit still to be confirmed.

Harris has pointed to Ireland’s lack of an investment culture as the reason for the plan. Around €160 billion is still sitting in low-yield Irish deposit accounts.

Capital gains tax and business reinvestment

Ireland’s main CGT rate is 33%. That is still one of the highest in Europe. Advisor commentary ahead of the budget has kept flagging it as a drag on reinvestment for entrepreneurs and owner-run businesses.

No change has been promised yet, but pressure for reform in this area is likely to continue.

R&D tax credits and capital allowances

For scaling and innovation-led businesses, better R&D tax credits and capital allowances have been raised as a priority. The aim is to give businesses more certainty and faster access within the current incentive system, rather than a full redesign.

Childcare fee reform

Childcare is shaping up to be a major theme, not just a side note. Harris has said fee cuts are coming, along with new support to help with the start-up cost of opening a crèche.

He has framed this as the first of four budgets in a row with a dedicated childcare update. Employers should watch this closely for help with recruitment and retention.

Stamp duty, ruled out for first-time buyers

One thing that will not change, according to Harris, is stamp duty for first-time buyers. He has ruled out a move, saying even talk of a change could distort the housing market for now.

VAT and RCT measures for construction and hotels

Continued focus is expected on Relevant Contracts Tax (RCT) and VAT rules that affect housing supply, including apartments and student housing, along with the wider hospitality industry.

Energy and retrofit supports

Grants and finance support to help households and small businesses move away from fossil fuels are expected, including solar panels and retrofit work. Harris has said businesses cannot be expected to carry the burden alone.

Compliance and enforcement balance

A quieter but still important theme is balance in tax penalties and interest charges. The aim is to cut avoidable business costs for firms that are otherwise compliant.

Smaller measures to watch

A possible rise in the tax on vapes has also been flagged. More than €22 million has been collected since the tax began in November 2025.

What this means for Azets clients:

• Owner-managed and family businesses: CAT threshold changes and continued CGT pressure make this a good time to review succession and exit plans before the budget lands, not after.
• Payroll clients: the income tax band threshold is the most likely change to affect your payroll setup for the new tax year. We will confirm the detail as soon as it is announced.
• Scaling and innovation-led businesses: R&D tax credit and capital allowance changes are worth tracking if you plan to invest in the year ahead.
• Private clients and business owners: the new personal investment account and any CAT threshold change are directly relevant to savings and estate planning.
• Employers: childcare fee reform and energy transition support may be worth folding into your benefits and cost planning.
• Construction and hospitality clients: watch for RCT and VAT detail for your sector.

None of the above is confirmed. It reflects public statements and pre-budget hints from government ministers up to August 2026, not final policy. We will publish a full breakdown as soon as the budget is delivered on 6 October.

Neil Hughes on the Irish Budget 2027

Ahead of Budget 2027, Azets Ireland CEO Neil Hughes highlights why domestic enterprise must take centre stage: “Ireland’s indigenous businesses employ 2 in every 3 workers, yet for too long they have been treated as an afterthought rather than a central pillar of economic policy. Budget 2027 must change that by placing domestic enterprise at the front of the policy agenda.”

Prepare your business for Budget 2027

While the final details of Budget 2027 won’t be confirmed until 6 October 2026, taking early action on succession planning, investment structures, and payroll preparation is key to protecting your financial interests.

At Azets Ireland, we help owner-managed businesses, private clients, and employers turn tax policy updates into strategic advantages.

Get in touch with our specialist team today to discuss what these expected changes mean for your business.