Budget 2027 Ireland – Tax Changes for PAYE Workers
What was announced on 6 October 2026, what it means for your take-home pay from 1 January 2027, and a free calculator to check your own figure
What was announced on 6 October 2026, what it means for your take-home pay from 1 January 2027, and a free calculator to check your own figure
Budget 2027 was delivered on 6 October 2026. After a standstill budget last year, it widens the income tax and USC bands and raises the main tax credits. Most of the income tax, USC and credit changes take effect from 1 January 2027, once they are legislated in the Finance Bill.
For a single PAYE employee on €50,000, the changes are worth about €747 a year (€62 a month) in 2027 on the estimate below, after allowing for the October PRSI step.
Single PAYE employee, standard credits, no pension or benefits. Enter your gross annual salary:
Want the full breakdown (income tax, USC, PRSI, monthly and weekly)? Open the main calculator set to 2027.
2026 uses today's rates (PRSI 4.35%). 2027 uses the Budget 2027 figures with PRSI averaged across the year (4.35% to 30 September, 4.5% from 1 October, about 4.39%). Estimates only; assumes weekly earnings above the PRSI threshold.
The point at which a single person starts paying the 40% rate rises by €2,500. Everyone with taxable income above €44,000 pays 20% instead of 40% on that extra band, worth up to €500 a year. Other categories (married one-income couples, single parents, two-income couples) increase as well; check Revenue's published 2027 table for those figures.
The upper limit of the 2% USC band rises by €1,600 to €30,300. The stated aim is to stop the minimum wage increase pushing full-time minimum-wage workers into the 3% band. The saving is at most €16 a year (€1,600 × 1%) for earners above €30,300. The 0.5% rate on the first €12,012, the 3% rate to €70,044 and the 8% rate above it are unchanged in the Budget announcements reported by KPMG and Davy. No extension was announced to the reduced USC rates for medical card holders; this may be clarified in the Finance Bill.
The planned 0.15-point increases in employee and employer PRSI take effect from 1 October 2027. For employees the Class A rate goes from 4.35% to 4.5%. The cost is about €75 a year per €50,000 of salary once it applies for a full year, so only about a quarter of that (about €19 on €50,000) falls in 2027. The weekly employer PRSI threshold rises from €552 to €600, which saves employers money but does not change your payslip.
Single PAYE employee, standard credits. The 2027 column includes the October PRSI step.
| Gross salary | 2026 net | 2027 net (est.) | Change (year) | Change (month) |
|---|---|---|---|---|
| €30,000 | €26,262 | €26,514 | +€252 | +€20.98 |
| €35,000 | €29,895 | €30,148 | +€253 | +€21.07 |
| €40,000 | €33,527 | €33,778 | +€251 | +€20.92 |
| €50,000 | €39,592 | €40,339 | +€747 | +€62.27 |
| €60,000 | €44,857 | €45,601 | +€744 | +€61.96 |
| €70,000 | €50,122 | €50,862 | +€740 | +€61.65 |
| €80,000 | €54,889 | €55,625 | +€736 | +€61.33 |
| €100,000 | €64,419 | €65,148 | +€728 | +€60.71 |
Figures are rounded estimates. 2026 is calculated at today's rates (cut-off €44,000, credits €4,000, USC 2% band to €28,700, PRSI 4.35%). 2027 is calculated with cut-off €46,500, credits €4,250, USC 2% band to €30,300 and PRSI averaged at 4.3875% for the year.
Higher earners gain a little more than lower earners because the wider 40% threshold only helps those with income above €44,000, while the €250 of extra credits helps everyone who pays tax.
Budget day announcements become law through the Finance Bill, usually passed in December. Most income tax, USC and credit changes apply from 1 January 2027, so your first 2027 payslip is when you will see them. Until then your pay is calculated with the 2026 rates and the 4.35% PRSI rate. Details can change between the Budget announcement and the final legislation, and this page will be updated if they do.
See how today's 2026 figures work in our Budget 2026 guide and the 2026 tax credits page.
Budget 2027, delivered on 6 October 2026, raises the standard rate cut-off for a single person by €2,500 from €44,000 to €46,500, and raises the Personal, Employee (PAYE) and Earned Income tax credits by €125 each from €2,000 to €2,125. The upper limit of the 2% USC band rises by €1,600 to €30,300. Most of these changes take effect from 1 January 2027. The planned 0.15-point rise in employee PRSI (to 4.5%) takes effect from 1 October 2027.
For a single PAYE employee with standard credits, the gain is about €500 a year from the wider 40% threshold, €250 from the higher credits and up to €16 from the USC band, less the PRSI rise from October 2027. On a €50,000 salary that works out at about €747 more a year on this page's estimate, or €62 a month. Your own figure depends on your salary and credits.
€46,500 for a single person (up from €44,000), so the first €46,500 of taxable income is charged at 20% and the rest at 40%. Other categories such as married one-income couples and single parents also increase; check Revenue's published 2027 tables for those figures.
Yes. The Personal, Employee (PAYE) and Earned Income tax credits each rise by €125 to €2,125, so a single PAYE employee has €4,250 of standard credits (up from €4,000). The Home Carer Tax Credit rises by €100 to €2,050 and the Rent Tax Credit rises to €1,150 for an individual and €2,300 for a couple.
Yes. The scheduled 0.15-point increases in employee and employer PRSI take effect from 1 October 2027, taking the employee Class A rate from 4.35% to 4.5%. For 2027 as a whole the average rate is therefore about 4.39%. The weekly employer PRSI threshold rises from €552 to €600.
Not yet. Budget measures are announced in October but legislated in the Finance Bill, and most income tax, USC and credit changes apply from 1 January 2027. Until then your 2026 payslip uses the 2026 rates. The figures on this page come from the Budget announcement and may be refined when the Finance Bill is published.