Budget 2026

Taxation Highlights

• Overall taxation package worth €1.3 billion, focused on targeted supports rather than broad personal tax cuts.
• No major income tax changes — standard rate bands remain at €44,000 for single individuals and €88,000 for jointly assessed couples.
• Universal Social Charge (USC) bands adjusted slightly — the 2% rate now applies up to €28,700.
• Mortgage interest tax relief extended for two years, but tapered: €1,250 in 2025 and €625 in 2026.
• Renters’ tax credit extended for a further three years at existing levels: €1,000 per individual or €2,000 per couple.
• Help to Buy scheme extended.
• VAT on new apartments cut from 13.5% to 9% to encourage supply.
• Carbon tax increased from €63.50 to €71 per tonne.
• Fuel duties rise by just over 2 cent per litre.
• 9% VAT rate on household energy bills extended until end-2028.
• Excise duty increased by 50 cent on a pack of 20 cigarettes, with pro-rata rises on other tobacco products.

Business Highlights

• VAT on food businesses, catering and hairdressing will reduce from 13.5% to 9% from July 2026. This will cost €232 million next year and €681 million in a full year
• Minimum wage increased by 65c to €14.15 per hour
• Research and Development tax credits will be overhauled
• The R&D credit rate will rise from 30% to 35%, the first year payment threshold rises to €87,500 to support smaller projects
• CGT revisions with entreprenurial relief reformed with the lifetime limit raised from €1 million to €1.5 million
• The Special Assignee Relief Programme has been extended for five years and increased minimum qualifying income raised to €125,000 p.a.
• Banking levy extended by another year with a target yield of €200 million

Download OSK Budget 2026 PDF

Contact OSK Tax Advisers for further details of Budget 2026 or our tax services.