Budget 2027 at a glance
Announced
6 October 2026
Tax changes apply from 1 January 2027
20% band, single person
€46,500
Up €2,500
Worth on €50,000
+€766/yr
+€691 against 2026, after PRSI
Gains are PayMetric Labs' own calculation for a single PAYE employee, using the announced 2027 rates.
The short answer: Budget 2027 was announced on Tuesday 6 October 2026. For a single person, the 20% band is €46,500 (up €2,500) and the personal and PAYE credits are €2,125 each (up €125 each). On €50,000 that is worth €766 a year, and on €40,000 it is worth €266.
PRSI takes some of it back. The employee rate went to 4.35% on 1 October 2026 and goes to 4.5% on 1 October 2027, which costs about €75 more in 2027 on €50,000. So a €50,000 earner ends up +€691 a year against 2026, not +€766. The changes start on 1 January 2027.
Budget 2027 calculator: what it means for your salary
The calculator starts on the Budget as announced. “No change” is 2027 at 2026 rates with only the legislated PRSI rise, so you can see what the Budget itself is worth. You can also change each measure to test a what-if.
Start from a scenario
20% band increase
Single person, from €44,000
Personal and PAYE credits
Increase to each, from €2,000
USC 2% band ceiling
€30,300 tracks a €14.94 minimum wage
2027 if nothing changes
€39,573
€3,298 a month
2027 with this Budget
€40,339
€3,362 a month
Budget effect
+€766
+€64 a month. Versus 2026: +€691 a year.
| Annual | 2026 | 2027, no change | 2027, this Budget |
|---|---|---|---|
| Income tax (PAYE) | €7,200 | €7,200 | €6,450 |
| USC | €1,033 | €1,033 | €1,017 |
| PRSI | €2,119 | €2,194 | €2,194 |
| Take-home pay | €39,648 | €39,573 | €40,339 |
Single PAYE employee, standard credits only. PRSI is blended across the year: 4.2% then 4.35% from October in 2026, and 4.35% then 4.5% from October in 2027, as already legislated. The announced scenario uses the Budget 2027 figures; any other combination is PayMetric Labs' own what-if modelling.
What Budget 2027 changed for your pay
| Measure | Detail | Status |
|---|---|---|
| 20% standard rate band | €46,500 for a single person, up €2,500 | Announced |
| Personal and PAYE credits | €2,125 and €2,125, up €125 each | Announced |
| USC 2% band | Ceiling €30,300, up €1,600 | Announced |
| Minimum wage | €14.94 an hour from 1 January 2027, from €14.15. Full 2027 minimum wage guide | Announced |
| Employer PRSI threshold | Higher rate applies above €600 a week | Announced |
| Earned Income Credit | Up €125 to €2,125, the same as the employee (PAYE) credit, for the self-employed. | Announced |
| Married couples and civil partners | Proportionate increases in the 20% band. | Announced |
| Home Carer Tax Credit | Up €100. | Announced |
| Rent Tax Credit | Up €150 to €1,150 for a single claimant and €2,300 for a couple. | Announced |
| Social welfare | Weekly rates up €10, including the State pension; Fuel Allowance up €5 to €43 a week. | Announced |
| Capital Gains Tax | Standard rate cut from 33% to 31%. | Announced |
| Funds and life assurance exit tax | Cut from 38% to 35% from 1 January 2027. | Announced |
| Rent-a-Room relief | Tax-free limit up from €14,000 to €16,000. | Announced |
| Employee PRSI | 4.35% since 1 October 2026, then 4.5% from 1 October 2027 | Already law |
How a wider band and higher credits actually work
The band. Income up to the cut-off is taxed at 20% and everything above it at 40%. Raising the cut-off by €2,500 moves €2,500 from the higher rate to the lower one, saving 20% of €2,500. That's why the gain stops at €500: a €46,500 earner and a €200,000 earner get exactly the same amount. If you earn between the old and new cut-off, you get 20% of whatever you earn above the old one. We covered why that €44,000 line matters so much in the 44k marginal tax cliff.
The credits. Tax credits come straight off your tax bill, so the €125 rise in both the personal and PAYE credits is worth €250 to anyone paying at least that much income tax, whatever they earn. That's why credits help lower earners much more than a band change: on €40,000 the band rise is worth nothing, but the credits and the USC change together are worth €266.
USC. Every Budget in recent years has raised the ceiling of the 2% band so it tracks a full-time minimum wage (39 hours × 52 weeks, which is €30,298 at €14.94). The most that change can save is 1% of the increase, so it matters more as a signal than for the money.
Budget 2027 gains at six salaries
Take-home pay for a single PAYE employee under the announced 2027 rates. “Budget effect” compares 2027 with and without the Budget. “Against 2026” also counts the PRSI rise.
| Gross salary | 2026 net | 2027 net | Budget effect | Against 2026 |
|---|---|---|---|---|
| €30,000 | €26,296 | €26,514 | +€263 | +€218 |
| €40,000 | €33,572 | €33,778 | +€266 | +€206 |
| €50,000 | €39,648 | €40,339 | +€766 | +€691 |
| €60,000 | €44,925 | €45,601 | +€766 | +€676 |
| €80,000 | €54,979 | €55,625 | +€766 | +€646 |
| €100,000 | €64,532 | €65,148 | +€766 | +€616 |
PayMetric Labs' own calculation from the announced measures. To check your own salary for 2026 and 2027, use the Ireland take-home pay calculator.
What to do before January
- If you rent, check you've claimed the Rent Tax Credit for 2026 and earlier years through myAccount. It's worth up to €1,000 per person for 2026, rising to €1,150 in 2027, far more than any band change. See how to claim it.
- If a pay rise or promotion is due in January, work out the after-tax value at 2027 rates, not 2026 rates, before you negotiate. The promotion raise guide shows how.
- Hiring or setting 2027 pay budgets? PRSI rises for employers as well, though the higher employer rate now starts at €600 a week instead of €552, and the €14.94 minimum wage moves the bottom of every pay scale. Price a role with the employer cost calculator.
- Check your first January payslip. Revenue issues new tax credit certificates to employers automatically, so the change should appear without you doing anything.
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Frequently asked questions
What did Budget 2027 change for income tax?
For a single person in 2027, the 20% standard rate band is €46,500 (up €2,500), the personal credit is €2,125 and the PAYE credit is €2,125 (up €125 each). The USC 2% band now runs to €30,300. The changes apply from 1 January 2027.
How much will Budget 2027 increase my take-home pay?
On PayMetric Labs' own calculation for a single PAYE employee, the Budget is worth €266 a year on €40,000, €766 on €50,000 and €766 on €100,000, against 2027 at unchanged rates. Compared with 2026, after the PRSI rise, that is +€206, +€691 and +€616. Use the calculator on this page for your own salary.
When do the Budget 2027 tax changes start?
Income tax, credit and USC changes apply from 1 January 2027, so you'll first see them in your January payslip. Revenue issues updated tax credit certificates to employers automatically. You don't need to claim anything for the standard credits.
Will my PRSI go up in 2027?
Yes, and it was already law before the Budget. Employee PRSI rose from 4.2% to 4.35% on 1 October 2026 and is due to rise to 4.5% on 1 October 2027. Across the 2027 calendar year that works out at about 4.4% against 4.2% in 2026, which costs about €75 more on a €50,000 salary and €150 more on €100,000.
Why is my gain smaller than the headline figure?
Two reasons. A wider 20% band only helps on income above the old €44,000 cut-off, so anyone earning less gets nothing from it. And PRSI is rising at the same time, which takes back €75 on €50,000. The calculator shows both effects separately: "Budget effect" is the Budget on its own, and "Versus 2026" is what changes in your pay.
I'm married or in a civil partnership. Do these figures apply to me?
Not exactly. The calculator models a single PAYE employee. A couple with one income has a 20% band of €53,000 in 2026, and a couple with two incomes can have up to €88,000 between them, so the euro amounts differ even though the mechanics are the same. Budget 2027 raises the married bands proportionately as well. For your exact position in 2026, use the Ireland take-home pay calculator and pick your status.
Has the Ireland take-home calculator been updated for 2027?
Not yet. It stays on 2026 rates until Revenue publishes the 2027 figures, because that is what your payslip uses until January. Until then, the calculator on this page is the one that applies the announced 2027 measures.
Sources and method
Announced measures are taken from Statement by Minister Harris on Budget 2027 (gov.ie), Budget 2027 main points (The Irish Times), Larger package of tax measures in Budget than expected (RTÉ). The PRSI rates were legislated before the Budget.
Take-home figures are PayMetric Labs' own model of a single PAYE employee with the standard personal and PAYE credits only: 20% and 40% income tax, 2026 USC bands apart from the 2% ceiling, and PRSI blended across each calendar year at the legislated rates. With 2026 inputs it matches our Ireland take-home calculator to the euro. It leaves out pensions, other credits, married bands and auto-enrolment. This is general information, not tax advice.
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