Budget 2026 has been valued at 9.4bn euro, with 8.1bn for public spending, and a tax package worth 1.3bn. This year’s surplus is 10.2bn euro, with next year’s surplus forecasted to be just over 5bn euro.
FUNDS/ INVESTMENTS:
24bn euro will be in the Future Ireland fund, and the Climate nature fund by the end of 2026, rising to 40bn by the end of this government’s term.
HOUSING:
5bn euro for the Department of Housing in 2026, including an extra 200m for Home Building Finance Ireland.
VAT rate on the sale of completed apartments will drop to 9% from midnight tonight, until the end of 2030.
A new derelict property tax is to be created, to replace the derelict sites levy, with a rate of no less than 7%.
Residential stamp duty refund scheme is being extended until the end of 2030.
Three year extension for the income tax deduction for small landlords who retrofit a property.
Renters’ tax credit has been extended until the end of 2028.
Mortgage interest relief will extend for a further two years, with a reduced rate in the final year.
BENEFITS / ALLOWANCES:
10 euro per week increase in the social welfare payment for 1.5m people.
Increase in the carer’s allowance income disregard to 1,000 euro for a single person, or 2,000 for a couple.
Child support payment increase by 8 euro per week for under 12s, and 16 per week for over 12s.
The working family payment will rise by 60 euro per week.
Back to School clothing and foot-ware allowance is being extended to two and three year olds.
Fuel allowance will rise to 38 euro per week (5 euro increase), with eligibility now extended to all recipients of the Working Family payment.
The social welfare Christmas Bonus for 1.5m people will be paid at a double rate of the normal payment.
TAX/INCOME:
Minister for Finance Paschal Donohue has promised to make changes to the income tax system, but not in this budget.
The ceiling for the 2% band of USC will increase by 1,318 euro to 28,700 euro to take account of increased minimum wage.
Minimum wage will increase by 65c an hour to 14.15 euro per hour.
VAT rate for food and catering businesses and hairdressing services to reduce to 9% from the 1st of July next year. This will cost 232m euro in the first year, and 681m in a full year.
The tax rate will be reduced on Irish and equivalent offshore funds, and foreign life assurance products, from 41% to 38%.
Carbon tax will rise to 71 euro per tome from tomorrow for auto fuels, and other fuels from May 1st next year.
5,000 VRT relief on electric vehicles extended to the end of December of next year.
Benefit in kind on electric company cards will be 10,000 euro next year, 5,000 euro in 2027, 2,500 in 2028, before being scrapped in 2029.
HEALTH:
There will be money provided for 3,370 more staff in the public health sector.
50 cent will be added to a pack of 20 cigarettes, with increases on other tobacco products as well.
12.2bn euro will be provided for capital expenditure on water and wastewater services.
Increase in 220 acute hospital beds and expansion of diagnostic services.
There will be 1.7m more home support hours provided next year.
500 more nursing home places.
Extra 600m euro for the disability budget.
EDUCATION/CHILDCARE:
Extra 35,000 children will benefit from the National Childcare Scheme.
2,300 more extra childcare places will be provided through the Building Blocks programme.
There will be 1,717 more SNAs provided in 2026, alongside 1,042 more teaching posts.
Third level student contribution will rise to 2,500 euro, after being reduced to 2,000 the past two years as a cost-of-living measure.
There will be 1,100 new places to study key health and social care professions.
Money will be provided for two new vetinary medicine colleges to almost double the number of vet graduates.
ENERGY:
9% VATE rate cut on gas and energy extended until the end of 2030.
SPORT/ARTS/TOURISM:
10.7m euro increase in budget for Sport Ireland.
3m euro of that will support establishment of LOI football academies.
357m euro for broadcasting to support TG4 and RTE reform.
AGRICULTURE:
85m more euro to tackle bovine TB
20m euro extra for the ACRES Scheme in 2026.
20m euro for the continuation of the sheep welfare scheme.
LAW ENFORCEMENT/DEFENCE:
1,000 trainee Gardai next year.
200 civilian Gardai will be provided for next year.
19m euro increase in the Gardai overtime budget
39m euro extra for the prisons service, with 11m euro extra for the courts service in 2026.
Net increase of 400 defence force members, with 50 new civilian posts.
Funding will be provided for a new Defence Forces Uniform.
Money will be provided for a military radar programme, new body armour, armoured personnel carriers and general modernization.
