Budget 2026 introduced little from a personal tax perspective, but introduced a few targeted measures, including USC adjustments and extended reliefs such as rent and mortgage interest credits. VAT reductions on utilities, food, catering, hairdressing aim to ease everyday costs through 2030. Entrepreneurs will benefit from an increased CGT relief limit, while investment fund tax drops from 41% to 38%.
Personal tax
- There will be no changes to income tax bands / tax credits .
- The 2 per cent rate band for USC will rise by €1,318 to €28,700 in line with the 65 cent per hour increase in the national minimum wage from 1 January 2026.
- Reduced rate of Universal Social Charge (USC) for medical card holders is being extended until 31st December 2027. Reduced rates of USC apply to people who have a medical card and whose income is €60,000 or less in years.
- The rent tax credit for private rented accommodation is being extended to 2028.
- The mortgage interest credit is being extended for 2025 and 2026: it will be capped at €1,250 for 2025 and reduced to €625 for 2026.
- Income tax deduction for landlords who retrofit their properties will be extended for 3 more years.
- Reduced tax on investments in funds from 41% to 38%.
VAT
- The reduced VAT rate of 9% on utility bills will be extended until the end of 2030.
- VAT on food and catering, and hairdressing will be reduced from 13.5% to 9% from July 2026.
- VAT reduced from 13.5% to 9% rate for new apartments until the end of 2030.
Capital Gains Tax
- Revised Entrepreneur Relief lifetime limit on gains increases from €1m to €1.5m on disposals from 2026.
Special Assignee Relief Programme
- An extension to 31 December 2030.
- An increase in the minimum qualifying annualised salary to €125,000.
- A number of administrative changes are expected to improve the practical application of the relief.
Foreign Earnings Deduction
- An extension to 31 December 2030.
- An increase in the amount of qualifying income from €35,000 to €50,000.
- The addition of Turkey and the Philippines to the list of qualifying countries.
- Administrative changes to improve practical application.
