LIVE: Budget 2026 Announcements

We will be updating as announcements continue

The Government is currently announcing Budget 2026.

Finance Minister Paschal Donohue and Minister for Public Expenditure Jack Chambers are making the announcements.

Budget is €9.4 billion with €8.1bn for public spending and a tax package of €1.3bn.

The tax package is reduced by €150m in order to give targeted supports for the most vulnerable.

The surplus this year is €10.2bn with a surplus next year of €5.1bn.

€24bn will be in the Future Ireland Fun and the Climate Nature Fund by end of next year rising to €40bn by end of the Governments term.

HOUSING/RENT

• €5bn has been allocated for the Department of Housing next year, 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 December 2030

• Further exemption in 2026 for the Residential Zoned Land Tax for those seeking to have land rezoned for genuine economic activity
• The profits arising from homes that fall under Cost Rental Schemes are to be exempted from corporation tax for developments on or after the 8th of October
• There will be an enhanced corporation tax deduction for certain costs incurred during the building of apartments of the conversion of non-residential buildings to apartments for those that have a commencement notice issued after tomorrow
• The renters tax credit is being extended to the end of 2028
• Mortgage interest relief will extend for a further two years, with a reduced rate in the final year
• Housing budget of 11.3bn with 7.2bn in capital funding for new social homes, starter homes programme, urban regeneration, housing activation office, 17,000 grants to retrofit older people's homes

- The Living City initiative is being extended until 2030 and the scope increased to those built before 1915 and before 1975 and giving relief to support the use of over the shop spaces for residential department. Athlone, Drogheda, Dundalk, Letterkenny and Sligo are being added to the scheme.

- A new derelict property tax will be created to replace the derelict sites levy - it will be charged at a rate of no less than 7%.

- The residential stamp duty refund scheme is being extended until the end of 2030 with some enhancements.

- There will be a three year extension for the income tax deduction for small landlords who retrofit a property.

- Paschal Donohoe commits to make progressive changes on income tax, but not in this budget. The ceiling for the 2% band of USC will increase by 1,318 to 28,700 euro to take account of increased minimum wage.

- The minimum wage will rise by 65c an hour to €14.15ph.

- 50c added to a pack of 20 cigarettes with a pro rata increase on other tobacco products

- The €5,000 euro VRT relief on electric vehicles will be extended to the end of December 2026

- Doubling of resources for the Shared Island Scheme by a further 1bn out to 2033

- Support the Narrow Water Bridge and a Dublin to Derry airlink

ENERGY

• 9% VAT rate cut on gas and energy extended to the end of December 2030
• The €400 income disregard for income from household microgeneration selling to the grid has been extended to the end of 2028

HOSPITALITY SECTOR

• The VAT rate for the food and catering businesses and hairdressing services to reduce to 9% from the 1st of July 2026.
• Costing €232m in its first year and €681m in a full year

BUSINESS

• The Research and Development tax credit will increase from 30 to 35% and increasing the first year threshold from 75k to 87.5k
• Increase in the gains someone can have under the entrepreneur relief from €1m to €1.5m
• The 481 film tax credit will be enhanced to provide a 40% rate for productions with a minimum spend of €1m on relevant visual effects work. Cap of €10m per production
• The Digital Games Tax Credit extended to 31st December 2031 and to cover post release content work
• Reducing the tax rate to Irish and equivalent offshore funds and foreign life assurance products from 41% to 38%
• The Bank Levy is extended by a year with a target yield of €200m
• 30m extra for overseas development age

FARMING

• The farm consolidation relief, farm restructuring relief, and young trained farmer reliefs are extended until the end of 2029
• €85m in additional funding to tackle bovine TB
• €20m extra for the ACRES scheme
• €20m for the continuation of the national sheep welfare scheme

CARBON TAX

• Carbon tax rises to €71 per tonne from tomorrow for auto fuels and other fuels from the 1st of May 2026. Additional revenue is expected to be €121m in 2026 and will be ringfenced for climate projects

Public Sector Staff

12,500 additional public sector staff:
3,370 in health
2,600 in education
1,000 Gardai

CAPITAL INVESTMENT

• 19.1bn for capital investment - increase of 2bn on last year

WATER

• 12.2bn for capital expenditure on water and wastewater services
• 1.4bn to Uisce Eireann

CHRISTMAS BONUS AND SOCIAL WELFARE

• The social welfare Christmas Bonus for 1.5m people will be paid at a double rate of the normal payment
• 10 euro per week increase in the social welfare payment for 1.5m people.

CARERS ALLOWANCE

• Increasing the carer's allowance income disregard to 1000 euro for a single person or 2000 euro for a couple
• Domiciliary Care Allowance up by 20 euro to 380 per month

CHILD SUPPORT

• Child support payment increase by €8 per week for under 12s and 16 per week for over 12s
• Working family payment also rising by €60 per week

BACK TO SCHOOL

• The back to school clothing and foot ware allowance is being extended to two and three year olds

FUEL ALLOWANCE

• Fuel allowance will increase by €5 weekly to €38
• Public Expenditure Minister Jack Chambers says he's also extending it to those in receipt of the working family payment:

DISABILITY BUDGET

• Extra 600m for the disability budget

HEALTH

• Increase in 220 acute hospital beds and expansion of diagnostic services
• 280 community beds
• Extra 1.7m home support hours
• 500 more nursing home places
• Increased staffing of mental health services

CHILDCARE

• Extra 35,000 children set to benefit from the National Childcare Scheme
• Measures to improve Year 5 of pay for educators and school age children practitioners
• 2,300 extra childcare places through the Building Blocks programme

EDUCATION

• 1,717 additional SNAs in 2026
• 1,042 extra teaching posts including 860 additional special needs teachers
• Money to implement the DEIS+ plan
• Increase in the capitation rates paid to schools by €50 at primary and special and €20 for post primary

HIGHER EDUCATION

• €500 reduction in the student contribution fee

• Creating 1,100 new places for studying key health and social care professions

SPORT

• €10.7 million increase in budget for sport Ireland
• €3m of that will support establishment of League of Ireland football academies

ARTS

• The pilot basic income scheme for artists is to be made permanent

BROADCASTING

• €357m for broadcasting to support TG4 and RTÉ reform

ARTIFICIAL INTELLIGENCE

• The Government is to establish a national artificial intelligence office

DEFENCE

• Net increase of 400 defence force members
• 50 new civilian posts
• 70 critical civil servants including in the area of cyber security
• Funding for a new Defence Forces Uniform
• Money for military radar programme, new body armour, armoured personnel carriers and general modernisation