Budget 2027 · Tax and pay
Budget 2027 tax changes: income tax, USC, PRSI and the minimum wage
Income tax, USC and PRSI decide how much of your pay you keep. Here is every current rate, what the reports expect Budget 2027 to change, and a calculator for your own pay.
Updated 4 October 2026. Budget day is Tuesday 6 October 2026.
Before, now and Budget 2027
Tax and pay: what's going up, what's going down
In Budget 2026, of the 6 rates shown: 3 went up, 0 went down and 3 stayed the same.
| What | Before Budget 2026 | Now | Budget 2027 |
|---|---|---|---|
| 20% income tax bandSingle personUnchanged in Budget 2026Source: Revenue | €44,000 a year | €44,000 a yearNo change | Due 6 Oct |
| Personal tax creditSingle personUnchanged in Budget 2026Source: Revenue | €2,000 a year | €2,000 a yearNo change | Due 6 Oct |
| Employee (PAYE) tax creditEach employeeUnchanged in Budget 2026Source: Revenue | €2,000 a year | €2,000 a yearNo change | Due 6 Oct |
| Top of the 2% USC bandIncome above this pays 3%Raised from 1 January 2026Source: Revenue | €27,382 a year | €28,700 a year+€1,318 | Due 6 Oct |
| Employee PRSI (Class A)Earnings over €352 a weekRose on 1 October 2026 under a phased plan, not a Budget 2026 measureSource: Citizens Information | 4.2% | 4.35%+0.15 pts | Due 6 Oct |
| National minimum wageAdult rateFrom 1 January 2026Source: Citizens Information | €13.50 an hour | €14.15 an hour+€0.65 | Due 6 Oct |
Predictions
What's expected in Budget 2027
From named reports, with exact quotes. These are not decisions until Budget day.
2 widely expected1 likely1 possible
- Widely expected
The 20% tax band rises to at least €46,000
Up €2,000 from €44,000 for a single person. That is worth up to €400 a year to anyone earning €46,000 or more, and nothing to people earning under €44,000.
It looks like this cut-off point is going to rise by at least €2,000.
The Irish Times · 30 Septit is expected that the entry rate for the higher rate of tax will be increased to at least €46,000.
Irish Examiner, Louise Burne · 4 Oct
Will it happen? - Widely expected
USC stays, but the 2% band is nudged up
No abolition. The top of the 2% band, now €28,700, is expected to rise so someone on a new minimum wage doesn't pay the 3% rate.
The much-hated USC is going nowhere, but there could be slight changes to how much you pay.
Irish Examiner, Louise Burne · 4 OctOne certain change is that the entry point to the 3 per cent rate, now €28,700, will be increased a bit
The Irish Times · 30 Sept
Will it happen? - Likely
Band and credit changes worth €400 to €500 a year
Tax credits are also expected to rise, so lower earners gain too. Reports describe it as the first step towards a €50,000 band over several Budgets.
middle-income earners could be between €400 and €500 a year better off due to changes to both tax bands and credits.
Irish Examiner, Elaine Loughlin · 28 Septa multi-budget strategy to increase the entry point to the higher rate of tax to €50,000.
Irish Examiner, Elaine Loughlin · 28 Sept
Will it happen? - Possible
Minimum wage to €14.94 an hour
The Low Pay Commission recommended a 79 cent rise from January. The Government decides whether to accept it.
The Low Pay Commission has recommended that the minimum wage increases by 79 cent an hour to €14.94
The Irish Times · 30 Sept
Will it happen?
Calculator
Your take-home pay in 2027
Take-home pay under the current rules
€3,079 a month€36,943 a year · €710 a weekBudget 2027 rules are added here once they are announced on 6 October and checked against the official documents.
| A year | Current rules |
|---|---|
| Gross pay | €45,000.00 |
| Income tax | €5,200.00 |
| USC | €882.82 |
| PRSI | €1,974.38 |
| Take-home | €36,942.81 |
You pay 17.9% of your pay in income tax, USC and PRSI. On your next €100 you'd keep about €53.
An estimate for PAYE employees in 2027 using 2026 bands and credits, PRSI at 4.35% rising to 4.5% on 1 October 2027, and the rent tax credit. It does not include pension contributions, benefit-in-kind, self-employment, reduced USC for medical card holders, the age credit or other reliefs. Nothing you enter leaves your browser.
Questions
Tax and pay: your questions answered
That will be known on 6 October. The 20% band for a single person is €44,000, and Budget 2026 left it unchanged. Widening the band has been discussed in the run-up to the Budget.
The personal tax credit is €2,000 for a single person and €4,000 for a married couple or civil partners. The employee (PAYE) tax credit is €2,000. Budget 2026 left them unchanged.
0.5% on the first €12,012, 2% on the next €16,688 (up to €28,700), 3% up to €70,044 and 8% on the rest. You pay no USC if your total income is €13,000 or less.
Yes. Employee Class A PRSI rose from 4.2% to 4.35% on 1 October 2026 and is due to rise to 4.5% on 1 October 2027, under a 2024 law that phases in increases to fund pensions. It isn't set in the Budget.
Use the calculator on this page. It shows your take-home pay under the current rules, lets you try a what-if, and adds the Budget 2027 rules once they are announced and checked.
It's an estimate for PAYE employees. It covers income tax, USC, PRSI and the rent tax credit, but not pension contributions, benefit-in-kind, self-employment or reduced USC rates. Check your own figures with Revenue's myAccount.
€14.15 an hour from 1 January 2026, up 65 cent. The 2027 rate is set by the Government, usually on the recommendation of the Low Pay Commission.
That is what the Irish Times and the Irish Examiner report: the 20% band is expected to rise by at least €2,000, from €44,000 to €46,000 for a single person. It would be worth up to €400 a year. Nothing is final until Budget day.
The Low Pay Commission recommended a rise of 79 cent to €14.94 an hour from January 2027. The Government decides whether to accept it, usually around the Budget.
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