Budget 2026 Ireland: What It Means for Your Financial Plan
Ireland’s Budget 2026 is made up of small gains rather than big wins, with a mix of modest tax reliefs, a few targeted supports, and continued investment in housing and public services.
At Financial Planning Matters, we’ve looked beyond the headlines to highlight the changes that affect you most, and what they mean for your financial plan.
1. Income & Tax
Minimum wage increasing to €14.15 per hour from January 2026.
USC 2% band rising to €28,700, meaning a modest saving for most workers.
No change to personal income tax bands or credits.
What it means:
The average worker will see a slight increase in take-home pay - but it’s minimal. This is a good time to review your monthly budget and consider redirecting any small gain toward your savings or pension.
2. Families & Children
Child Support Payment rising by €8 per week for children under 12, and €16 per week for those over 12.
Working Family Payment thresholds increasing by €60 per week.
Fuel Allowance increased by €5 per week, with eligibility now extended to families receiving the Working Family Payment.
Carer’s Allowance means-test thresholds raised to ease qualification.
Renters’ Tax Credit extended to 2028.
What it means:
Some families will feel a small lift. With the renters’ tax credit extended, those in rental accommodation should ensure they’re claiming it, it’s worth €1,000 for individuals and €2,000 for a couple.
3. Social Welfare & Pensions
Core weekly welfare payments and the State Pension both increasing by €10 per week.
Christmas Bonus confirmed at 100%.
Continued one-off supports for Fuel Allowance and Living Alone payments.
What it means:
These adjustments help cushion rising costs, particularly for pensioners and lower-income households. For everyone else, it’s a reminder of the value of long-term planning - building your own financial resilience rather than relying on short-term supports.
4. Housing & Homeowners
Mortgage Interest Relief extended for two more years.
VAT on new apartments reduced from 13.5% to 9% to stimulate development.
A new derelict property tax will replace the existing vacant homes levy.
Ongoing funding for social and affordable housing, retrofits, and first-time buyer supports.
Rent Tax Credit extended.
What it means:
Housing supply remains the Government’s focus, but challenges persist. If you’re a homeowner or first-time buyer, review your mortgage, cover, and repayment plan regularly to stay on track amid fluctuating interest rates. We recommend BeatTheBank.ie for reviewing your mortgage protection.
5. Cost of Living & Energy
VAT on food, hospitality and hairdressing to fall from 13.5% → 9% (from July 2026).
9% VAT on gas and electricity extended until 2030.
Petrol and diesel up 2c per litre, completing the phased excise restoration.
Cigarettes up 50c per pack (average now above €17).
What it means: Review your household budget, account for price changes, and keep your emergency fund healthy.
6. Business, Investment & Entrepreneurship
Entrepreneur Relief (CGT) lifetime limit raised from €1m → €1.5m.
Exit tax on investments cut from 41% → 38%.
What it means:
Positive news for investors and small business owners. For personal investors, this is a chance to review your strategy - ensuring it aligns with your goals, not just the latest tax incentives.
7. Health, Education & Disability Supports
Extra investment in healthcare, including hospital capacity, disability services, and mental health supports.
Funding for 1,500 new Special Needs Assistants (SNAs) and expanded assessments for children with additional needs.
What it means:
A welcome boost to essential services, helping ease pressure on families and the wider system - though the long-term delivery will take time.
8. Arts, Sport & Society
Basic Income for the Arts extended to include more artists.
Major increase in sports funding, especially for women’s and community sports.
Minimum age for tobacco increasing to 21.
9. Capital & Contingency Funding
Record public investment in housing, infrastructure, and transport.
Creation of a €1 billion contingency fund to manage future cost pressures.
What it means:
The Government’s focus is shifting towards long-term stability - something individuals should mirror through personal planning and savings.
The Takeaway
Budget 2026 Ireland offers short-term support and steady progress, but not sweeping change.
For lasting results, it’s your own financial plan that counts.
At Financial Planning Matters, we help you make the most of what you earn, protect what matters, and plan for the future.
It’s time to take control of your finances and plan for lasting progress.
Book a consultation with one of our Certified Financial Planners to get started.
