Key Budget 2027 announcements and the new tax-free investment opportunity

On Tuesday 6 October 2026, Tánaiste Simon Harris delivered his first budget speech as minister for finance.

Budget 2027 was delivered against a backdrop of strong economic growth in Ireland, but significant global uncertainty.

Accordingly, Mr Harris began by outlining three issues that had shaped his thinking while constructing the Budget:

• Energy market volatility, with the war in Iran increasing energy prices and impacting people around the globe.

• Geopolitical uncertainty, to which Ireland is vulnerable, particularly in relation to shifting patterns of global trade.

• Global bond markets, with advanced countries experiencing rising borrowing costs, which will significantly increase the cost of financing their debt and impede “their ability to do other things”.

With both Mr Harris and Minister for Public Expenditure Jack Chambers having made many of their intentions public in the days and weeks leading up to the official announcement, here are three key changes that may matter most to you and your family.

Income Tax changes will leave more money in your pocket

The standard-rate cut-off point will rise by €2,500 to €46,500 for an individual, with proportionate increases for married couples and civil partners.

From 1 January 2027, a single individual without a qualifying child will pay the higher rate on taxable income above €46,500, rather than €44,000.

Meanwhile, personal, employee, and earned Income Tax credits will increase by €125 and the home carer tax credit will increase by €100.

The entry threshold for the Universal Social Charge 3% band will increase by €1,600 – taking it from €28,700 to €30,300.

As a result, someone earning €50,000 would pay more than €700 less in Income Tax and Universal Social Charge from 2027; a couple with two incomes totalling €100,000 would pay €1,500 less, depending on their circumstances.

Gift and inheritance tax-free thresholds will increase from 1 January 2027

The Capital Acquisitions Tax thresholds, which apply to gifts and inheritances, were last increased in 2024.

From 1 January 2027, all three thresholds will be increased:

• Group A will increase from €400,000 to €420,000.

• Group B will increase from €40,000 to €44,000.

• Group C will increase from €20,000 to €22,000.

Further details will be set out in the Finance Bill.

New personal investment accounts introduced to encourage more people to invest

Acknowledging the strong culture of saving in Ireland, Mr Harris said: “Irish people have a strong culture of saving, yet participation in investments remains very low.”

“For many”, he added, “investing can be complex. It can be inaccessible. It can be something that is reserved for those with significant wealth or significant expertise. We, as a government, want to change that […] We want to make investing simpler, clearer, and more accessible to everyday people.”

To this end, Mr Harris introduced the new investment accounts, allowing individuals to save up to €50,000 tax-free, with annual contributions capped at €12,000.

Where the value of the account exceeds €50,000, a flat tax of 1% will apply – but only on the excess amount.

So, if an account was valued at €52,000, the tax payable for that year would be €20.

Crucially, where tax is due, responsibility will fall to the provider, meaning there’ll be no extra administrative burden on you.

And accounts will not be subject to Capital Gains Tax, Dividend Withholding Tax, Investment Undertaking Tax, or Life Assurance Exit Tax.

Available from 1 July 2027, you’ll be able to invest up to €12,000 a year.

Eligible investments will include:

• Listed shares

• Listed bonds

• Investment funds

• Exchange-Traded Funds (ETFs).

Highly complex and risky products, including derivatives and crypto assets, will not be eligible.

To foster competition and help reduce fees, accounts will be available from a wide choice of providers, including banks, investment firms, and insurers.

As well as launching the investment account, the government will take steps to improve national financial literacy, helping people to develop the knowledge and confidence to make informed decisions about saving and investing.

Get in touch

To find out more about how an investment account could complement your financial plan, or to discuss any other aspect of Budget 2027, please get in touch.

Email rory@brazilfinancial.ie or call +353 86 824 7542.

Please note

The content of this Budget 2027 summary is intended for general information purposes only. The content should not be relied upon in its entirety and shall not be deemed to be or constitute advice. 

While we believe this interpretation to be correct, it cannot be guaranteed, and we cannot accept any responsibility for any action taken or refrained from being taken as a result of the information contained within this summary. Please obtain professional advice before entering into or altering any new arrangement.

Sources

Irish government website, Statement by Tánaiste and Minister for Finance Simon Harris on Budget 2027