First-time buyers will see their Help to Buy tax rebate rise by €5,000 to a total of €35,000 as part of the newly finalized financial package. This specific adjustment comes as government coalition leaders concluded crunch talks on Monday night to shift the focus toward workers, following a previous cycle that officials acknowledged left households worse off.
For most citizens, the budget brings immediate changes to social welfare and income tax thresholds. The State pension is set to rise by €10 per week, a figure that also applies to all other core social welfare payments. Additionally, the entry point for the 40% higher rate of income tax will shift from €44,000 to €46,500, a move that is €500 higher than what was initially expected by market analysts and observers.
Beyond basic income adjustments, the government has introduced a new permanent disability payment of €500. Families will receive an additional €6 per week in child support payments, though the standard Children’s Allowance remains unchanged. Those relying on social welfare will also receive a fuel allowance increase of €5 and the customary Christmas bonus. Regarding capital acquisitions, inheritance tax thresholds are rising across all categories, with the parent-to-child limit climbing by €20,000 to reach €420,000.
While the budget aims to alleviate cost-of-living pressures, it notably excludes energy credits, which will not be part of the 2027 package. Finance ministers Jack Chambers and Simon Harris are scheduled to present the formal details to Dáil Éireann on Tuesday afternoon to confirm the public spending and taxation strategy for the coming year.