Budget 2026 Ireland: Small Gains, Real Choices

Budget 2026: The Headlines That Matter

Budget 2026 Ireland delivered some small gains for households – but not much that will change the day-to-day reality of Irish finances.

At Beat the Bank, we believe the real difference comes from what you do next: comparing your options, cutting costs where you can, and keeping more money in your pocket.

1. Your Income & Tax

• 🔹Minimum wage rising to €14.15/hour from January 2026.
   
• 🔹USC 2% band raised to €28,700, slightly lowering USC bills.
   
• 🔹No changes to personal income tax credits or bands.
  
  

What it means:
You might notice a small increase in take-home pay – but it’s modest. Use any margin wisely to reduce debt, boost savings, or review your cover.

2. Everyday Costs & Energy

• 🔹VAT on food, hospitality and hairdressing down to 9% (from July 2026).
   
• 🔹Gas & electricity VAT staying at 9% until 2030.
   
• 🔹Petrol and diesel up 2c per litre; cigarettes up 50c per pack.
   
• 🔹Fuel Allowance increased by €5 per week, with expanded eligibility.
  
  

What it means:
Keeping a tight handle on everyday expenses – and shopping around – makes the real difference.

3. Families, Welfare & Renters

• 🔹Child Support Payment rising by €8/week (under 12s) and €16/week (over 12s).
   
• 🔹Welfare and pension payments both up €10/week.
   
• 🔹Renters’ Tax Credit extended to 2028.
   
• 🔹Carer’s Allowance thresholds increased.
  
  

What it means:
Families and renters get small but steady help. Still, the biggest savings come from reviewing what you pay – whether that’s insurance, utilities, or loans.

4. Housing & Homeowners

• 🔹Mortgage Interest Relief extended for two more years.
   
• 🔹VAT on new apartments cut from 13.5% to 9%.
   
• 🔹Derelict property tax replacing the old vacant homes levy.
   
• 🔹Continued support for retrofits and first-time buyers.
  
  

What it means:
Good news if you own a home or plan to buy – but inflation and rates still matter. Check if your mortgage protection and life cover are competitively priced.

5. Business & Investment

• 🔹Entrepreneur Relief (CGT) limit up from €1m → €1.5m.
   
• 🔹Exit tax on investments reduced from 41% → 38%. 

   

6. Health, Education & Society

• 🔹More funding for healthcare, mental health, and disability services.
   
• 🔹1,500 new Special Needs Assistant (SNA) posts created.
   
• 🔹Basic Income for the Arts extended and sports funding increased.
  
  
• 🔹Minimum tobacco age rising to 21.
  
   

The Bottom Line

Budget 2026 gives some small lifts – but the real savings come from your own decisions.

At Beat the Bank, we help you compare mortgage protection, life, income, and health insurance across Ireland’s leading insurers – so you can save up to 40% and keep more in your pocket.

Compare now at BeatTheBank.ie.