Budget 2027 has been announced today, with a number of important changes for businesses and individuals. We have highlighted some of the main announcements below.

Income Tax & USC

The point at which the 40% income tax rate applies will increase: €44,000 → €46,500

The Personal Tax Credit, PAYE Tax Credit and Earned Income Tax Credit will each increase by €125.

The 3% USC band will increase by €1,600 to: €30,300

For someone earning €50,000, the changes are expected to reduce income tax and USC by over €700 per year.

The increase in the Earned Income Tax Credit is particularly relevant to self-employed taxpayers and qualifying proprietary directors.

Employers & Payroll Costs

The National Minimum Wage will increase by €0.79 per hour: €14.15 → €14.94 per hour

Employers should factor the increase into their 2027 payroll and workforce budgets, together with the associated employer payroll costs.

For a full-time employee working 39 hours per week, the increase represents approximately: €1,600 additional annual basic pay

before associated employer costs.

Business owners should review staffing budgets and pricing assumptions for 2027.

Capital Gains & Investments

A significant reduction in Capital Gains Tax has been announced: CGT: 33% → 31%

The tax applying to certain investment products will also fall: Exit Tax / Deemed Disposal: 38% → 35%

These changes are particularly relevant to:

• business owners disposing of assets
• company directors and investors
• individuals holding investment funds and other taxable investments

The CGT reduction may create opportunities to revisit planned disposals and investment strategies.

New Personal Investment Account

A new State-backed investment account will be introduced from: July 2027

Key features:

• Up to €12,000 annual contributions
• Up to €50,000 held tax-free
• Amounts above €50,000 subject to a 1% annual tax
• Investment permitted in stocks and shares

This represents a significant new tax-efficient savings and investment option for individuals.

Company directors, business owners and other investors should consider how the new account fits alongside pensions and existing investment structures.

Inheritance & Business Succession

Capital Acquisitions Tax thresholds are increasing:

Category A: €400,000 → €420,000
Category B: €40,000 → €44,000
Category C: €20,000 → €22,000

These increases provide additional scope for tax-free gifts and inheritances. For business owners, the changes should also be considered alongside:

• Business relief
• lifetime gifting
• family succession planning
• transfer of shares and business assets

Early planning can make a significant difference to the tax cost of passing wealth or a business to the next generation.

Property, Housing & Motoring

• Help-to-Buy: Maximum support increasing to: €35,000
• Rent Tax Credit: Increasing to: €1,150 per person per year and €2,300 for a couple
• Rent-a-Room Relief: Tax-free threshold increasing to: €16,000
• The relief will also be extended to qualifying newly installed detached auxiliary dwellings.
• Electric Vehicles: VRT relief extended to: 31 December 2028

VRT rates increasing by 1% for higher-emission vehicles in bands 3–20.

Business & Enterprise

€1 BILLION ENTERPRISE INVESTMENT PROGRAMME
A new €1 billion investment programme has been announced aimed at supporting the development of the next generation of large Irish companies. Further details will be important for:

• growing SMEs
• scaling businesses
• companies investing in expansion
• entrepreneurs seeking growth capital

Gallagher Keane will review the detailed measures as further guidance becomes available and assess the opportunities for Irish businesses.

What Does Budget 2027 Mean for You?

Budget 2027 contains important changes across:

• personal taxation
• business costs
• capital gains
• investment
• inheritance and succession
• property
• enterprise supports

For business owners, company directors and self-employed individuals, the headline announcements only tell part of the story.

Gallagher Keane will be reviewing the detail and the tax-planning opportunities arising from Budget 2027.

Email: info@gallagherkeane.ie