October 6, 2026: Public Expenditure Minister Jack Chambers (L) and Tánaiste and Finance Minister Simon Harris (R) on the steps of Government Buildings in Dublin.RollingNews.ie

Budget 2027 has been unveiled by Finance Minister Simon Harris and Public Expenditure Minister Jack Chambers in a package worth around €8.5 billion.

The Taoiseach took to social media on Tuesday morning to state that this Budget is "for families, for workers and helping people with rising costs."

Here are the five key takeaways for your pocket.

1. A boost to your take home pay

The big one for workers was income tax. The point at which a single earner starts paying the higher 40% rate rose from €44,000 to €46,500, while personal tax credits go up by €125 per worker.

"It is the tax revenue of hardworking people which pays to provide the services we need," Mr. Harris said, while acknowledging that too many people earning "good money on paper but feel like they’re just about getting by."

As part of the measure, Minister Harris also confirmed that the entry threshold for the USC 3pc band will be increased by €1,600 to €30,300 and the employer Pay Related Social Insurance (PRSI) threshold will be increased to €600 per week for 2027.

Taken together, the Government said the changes would leave a typical middle-income earner around €750 a year better off or a married couple €1,500.

2. A good day for parents

The standout measure for families is a cap on childcare costs at €550 a month for children up to senior infants. This will cover children up to the age of seven, where the biggest cost pressures fall.

The Government has described it as a significant step towards its pre-election goal of cutting childcare costs to €200 a month, though parents will have to wait, as the cap does not come into effect until September 2027.

3. Pensions, welfare and a new disability payment

There is a significant package on social welfare. The Living Alone Allowance rises by €3 to €25 a week, while the Child Support Payment goes up by €6 for both under-12s and over-12s.

In a first for the State, a new cost-of-disability payment of €500 will be introduced. The Fuel Allowance means test for single people over 66 is also being eased, with the income threshold rising from €534 to €641 a week. There is no change to Child Benefit.

4. Energy, fuel and the cost of living

With universal energy credits gone, the Government says that help on energy is more targeted this year.

The Fuel Allowance rises by €5 a week, and there is a cut to the carbon tax on home heating oil that will last the lifetime of the Government, with the rate coming down to 48c per tonne of CO2 rather than rising as planned.

Excise cuts on petrol and diesel will be extended and continue throughout winter before being gradually restored from February 2027.

On housing, first-time buyers will be able to access up to €35,000 towards the deposit on their first home, an increase of €5,000. The rent tax credit, which helps over 400,000 people, is being increased to €1,150 for single claimants and €2,300 for couples.

5. The old reliables

Smokers have been hit once again as a packet of 20 cigarettes goes up by €1 – pushing some brands past the €20 mark for the first time. The price of a vape has also risen, but by a more reasonable 20c.

Investment scheme and other measures of note

Elsewhere, Mr Harris announced a new State savings and investment account that will be launched in July 2027.

The maximum investors will be able to put into the Government’s new Personal Investment Fund will be €12,000 a year while the total they will be able to accumulate in the fund will be €50,000 before a tax of 1pc is applied. This essentially means that investors will be able to build up a €50,000 tax-free fund.

eanwhile, the Government has increased the tax-free income from the Rent A Room scheme from €14,000 to €16,000 in order to unlock further rooms for students.

And, in a further push to force more derelict properties to the market, Minister Harris confirmed that the new derelict property tax will be introduced at a rate of 7pc.

*This article was originally published on Extra.ie.