Ireland’s Finance Bill 2026 sets out a wide-ranging package of tax changes affecting households, investors, farmers, landlords and businesses. Published by the Department of Finance on 19 October 2026, the 79-section Bill gives legal effect to measures announced in Budget 2027.
The legislation spans 242 pages and includes income tax adjustments, new investment rules, changes to property reliefs, fuel taxation measures and updates for enterprises. The Department of Finance said the Bill also contains technical and administrative amendments to Ireland’s tax code.
Finance Bill 2026 introduces major income tax changes
The Finance Bill 2026 provides for an income tax and USC package estimated to cost €1.3 billion in 2027 and €1.5 billion in a full year.
For a single person, the standard-rate income tax band will increase by €2,500 to €46,500. Equivalent adjustments will apply to married couples and civil partners. The Personal, Employee/PAYE and Earned Income tax credits will each rise by €125 to €2,125, while the Home Carer Tax Credit will increase by €100 to €2,050.
The 2% USC band ceiling will also rise by €1,600 to €30,300 from 1 January 2027, reflecting the increase in the National Minimum Wage.
Finance Bill 2026 changes investment and capital taxes
New investment account
A new investment account is scheduled to become available from 1 July 2027. It will be open to Irish-resident adults aged 18 or over who have a PPSN. The account will provide a €50,000 tax-free threshold, followed by a flat 1% tax on the account value above that threshold, with annual contributions capped at €12,000.
Providers will calculate and pay any tax due to Revenue on behalf of account holders. Existing retail investment rules, including deemed disposal, will not apply within the qualifying account.
Investment funds and capital gains
The tax rate on Irish-domiciled investment funds and certain life assurance products will fall from 38% to 35%. Equivalent offshore products covered by the legislation will receive the same reduction.
The standard Capital Gains Tax rate will decrease from 33% to 31%, effective from 7 October 2026. Capital Acquisitions Tax thresholds will also rise: Group A to €420,000, Group B to €44,000 and Group C to €22,000. The CAT rate remains 33%.
Property, rent and household measures
Rent-a-Room relief will increase from €14,000 to €16,000 from 1 January 2027. The relief will also cover qualifying auxiliary dwellings, including certain modular homes, subject to size, installation-date and planning requirements.
The Bill also includes increases to the Rent Tax Credit and Help to Buy relief, alongside provisions for the new Derelict Property Tax and Residential Zoned Land Tax. These measures will be relevant to homeowners, tenants, property investors and developers, with implementation details administered through Revenue and other public bodies.
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Fuel, farming and enterprise provisions
Several carbon tax increases on auto fuels have been deferred, with the €78.50 per tonne rate postponed until 1 May 2027. Changes also apply to kerosene, natural gas, marked gas oil and solid fuels. The Bill extends or phases the restoration of Mineral Oil Tax non-carbon component rates for petrol, diesel and marked gas oil.
Farmers will benefit from an expanded accelerated capital allowance for farm safety equipment, changes to succession farm partnerships and an increase in the Farmer’s Flat Rate VAT. Livestock-related VAT provisions and other agriculture measures are also included.
Businesses will see changes to the Research and Development Tax Credit, Knowledge Development Box, start-up company relief, Pillar Two rules, preliminary Corporation Tax requirements and Enhanced Reporting Requirements.
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What happens next?
Finance Bill 2026 must progress through the Oireachtas before its provisions become law. Revenue Commissioners guidance will be important for taxpayers, employers, investors and businesses interpreting commencement dates and eligibility rules. Other public bodies, including the Department of Finance and relevant Government departments, may publish further administrative guidance.
Article/Image Courtesy: gov.ie
Article/Image Courtesy: gov.ie
