Dublin: Ireland's 2027 annual budget has been presented with crucial announcements that will bring relief to ordinary people and the middle class.
The government has announced a budget package totaling 8.5 billion euros, including 1.5 billion euros for tax breaks and 7 billion euros for public spending .
Income tax and wages
- Higher tax threshold raised: The threshold at which the 40% higher tax rate applies has been raised from €44,000 to €46,500 (an increase of €2,500).
- Tax credits: Personal Tax Credit and Employee Tax Credit have been increased by €125 each. This will give an individual a total of €250 extra relief. Personal Tax Credit, Pay and Earned Income Credit will all increase by €125.
- The 3 percent USC band will be increased by €1,600 to €30,300. Harris said the changes would give workers earning €50,000 a year a reduction of more than €700 in income tax and USC.
- Minimum Wage: The National Minimum Wage has increased by 79 cents to €14.94 per hour .
Housing and tenants
- Help to Buy: The maximum benefit for first-time home buyers has been increased by €5,000 to €35,000 .
- Rent Tax Credit: The tax credit available to renters has been increased to €1,150 for individuals and €2,300 for couples .
- Rent-a-Room Relief: Increased tax-free threshold for those renting out rooms in homes and backyard modular units.
Social welfare and cost of living relief
- Weekly benefits: Pension and other major social welfare pensions increased from €10 to €12 per week.
- Christmas Bonus: The Christmas bonus of the full amount (100% Double payment) will continue to be distributed.
- Special benefits: A one-off €500 cash payment for people with disabilities , a €5 increase in the weekly fuel allowance , and an increase in the living alone allowance to €25 per week (the standard child benefit will remain at €140).
Childcare and higher education
- Childcare fees: Full-time childcare fees will be capped at a maximum of €550 per month .
- College fees reduced: Student contribution fees at undergraduate level have been permanently reduced by €150 to €2,350 .
Other important announcements
- Inheritance Tax (CAT): The tax exemption limit for assets transferred from parents to children has been increased to €420,000 .
- Tobacco and vaping: With a €1 increase per pack of cigarettes, the price of many major brands will exceed €20. An excise duty of 20 cents per milliliter has been introduced for e-cigarette liquids .
- Fuel: The carbon tax increase for Home Heating Oil has been eliminated and the rate has been reduced.
- Health: The age limit for the free contraception scheme has been expanded to 37 years .
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