Harris announced that the standard-rate band rises by €2,500, so the 40% rate starts at €46,500 for a single person (Irish Times, Irish Examiner, TheJournal, RTÉ). The personal, employee and earned income tax credits each rise by €125, and the home carer credit by €100. A USC band ceiling rises by €1,600 to €30,300. The standard rate of capital gains tax falls from 33% to 31% for disposals from 7 October (Irish Times, Raisin). RTÉ called the tax package larger than expected; the Irish Times put reductions at €1.65 billion and Raisin put income tax at €1.3 billion. Chambers set spending growth at 6%. Sinn Féin called the changes an "insult to workers".
Income tax is the largest part of what most workers lose from a pay packet. A higher threshold and bigger credits mean more take-home pay without a pay rise, though inflation at 3.9% eats some of it.
A single worker earning above the threshold keeps more of each extra euro, and the €125 credit increase is worth €125 to every employee before tax. The effect shows up in January pay.
The Government says the package gives workers real relief and keeps spending within a stated limit.
Sinn Féin and others argue the gains are too small against the cost of living, and the Fiscal Council says the plan leans on risky corporation tax.
Work out your own gain from the threshold and credits together. For most employees it is a few hundred euros a year, which is roughly what Harris promised, and well short of what inflation takes.
Irish Times, Irish Examiner, TheJournal, RTÉ, Raisin (6 Oct 2026)
Budget 2027: higher-rate threshold rises €2,500 to €46,500 and main tax credits go up €125
Simon Harris and Jack Chambers presented an €8.5bn package on Tuesday. RTÉ described the tax measures as larger than expected, though outlets give different totals.
Finance Minister Simon Harris told the Dáil on Tuesday that the point at which the 40% rate of income tax starts will rise by €2,500, from €44,000 to €46,500 for a single person, according to the Irish Times, the Irish Examiner, TheJournal and RTÉ. The main personal, employee and earned income tax credits each rise by €125, and a Universal Social Charge band ceiling goes up by €1,600 to €30,300. Home carer credit rises by €100. The Irish Times and Raisin report that the standard rate of capital gains tax falls from 33% to 31% for disposals from 7 October.
RTÉ called the tax package larger than expected. Outlets differ on its size: the Irish Times put tax reductions at €1.65 billion, while Raisin gave €1.3 billion for income tax alone. Davy had pencilled in €1.5 billion of tax measures. Public Expenditure Minister Jack Chambers set spending growth at 6% for 2027, according to RTÉ. Sinn Féin called the income tax changes an "insult to workers", according to coverage of the Dáil debate.