The Government has described Budget 2026 as "sensible" and one which will "protect jobs and protect growth" in Ireland given an uncertain global economy.
But some Opposition members have described it as "very disappointing", with "ordinary people left in the cold" given a lack of a distinct cost-of-living package and no changes to personal income tax for workers.
Either way, Budget 2026 is a more constrained package compared to other budgets delivered in recent years, with one-off measures replaced by more targeted and permanent supports.
Minister for Finance Paschal Donohoe and Minister for Public Expenditure Jack Chambers announced a raft of measures in a package totaling €9.4bn, with €8.1bn committed to public spending and €1.3bn in taxation measures.
Here are some of the key announcements from Budget 2026 and how they will affect you:
Welfare
A social protection package worth €27bn has been announced in Budget 2026, one of the biggest spends across Government departments.
- There will be a €10 increase across the weekly social protection payments, including the State pension
- Christmas bonus for long-term social welfare recipients to be paid at a rate of 100% of the normal weekly payment
- Weekly rates of child support payment to increase by €8 for children under 12 and €16 for children over 12, to €58 and €78, respectively
- Weekly fuel allowance rate to increase by €5 to €38, with eligibility extended to all households receiving the working family payment
- Working family payment to increase by €60 for all families
- Income disregard for the carer's allowance will increase to €1,000 for a single person and €2,000 for a couple
- Domiciliary care allowance will also go up €20 to €380 per month
- Back-to-school clothing and footwear payment extended to two and three year olds
Income tax and other credits
Minister Donohoe told the Dáil that the scope for significant personal tax changes was limited. As expected, there were no changes to personal income tax for workers.
- The minimum wage will increase by 65c per hour to €14.15 per hour from 1 January 2026
- Ceiling for the USC 2% rate band to therefore increase by €1,318 to €28,700
- No broad personal taxation changes
- VAT rate for food and catering businesses and hairdressing services reduced from 13.5% to 9% from 1 July next year, but no change for hotels that provide just accommodation
- It will come at a cost of €232m for 2026 and €681 in a full year
- Reduced 9% rate of VAT on gas and electricity bills to be extended to 31 December 2030
- Research and development tax credit to increase from 30% to 35%, while first-year payment threshold to go up to €87,500
Housing and rents
Minister Donohoe said housing was at the forefront of his mind when preparing the Budget, with a committment to increase supply so more people have access to a home.
Over €5bn in capital investment has been committed to delivering homes in 2026, on top of investment from the Land Development Agency and approved housing bodies.
- VAT rate on sale of completed apartments to be reduced from 13.5% to 9% from tonight until December 2030
- Rent Tax Credit first introduced in 2023 to be extended for a further three years to end of 2028
- Mortgage Interest Tax Relief to be extended for a further two years, with reduced value applying in final year
- Help-to-Buy scheme will not rise above current €30,000 cap
- The Residential Zoned Land Tax will be extended to next year
- Living City Initiative extended to end of 2030 and to include residential properties built before 1975
- "Over the shop" premises relief to increase from €200,000 to €300,000
- New derelict property tax to replace derelict site levy, currently charged at a rate of 7% on site market value
- €200m extra funding for SMEs to fund housebuilders
- €1.4bn to go towards Uisce Éireann to support new housing developments and improve water supply
Carbon tax and climate
Minister Donohoe said additional revenue arising from the carbon tax is estimated at €121m next year and €157m for a full year.
It will be ringfenced, with the revenue to go towards social welfare measures and other schemes to address fuel poverty and ensure a just transition.
Minister Chambers also announced an allocation of €1.1bn for the Department of Climate, Energy and the Environment.
- The carbon tax will be increased to €71 per tonne of CO2 emitted
- Increase will add around 2.5c to cost of litre of motor fuels
- New rate to be applied to auto fuels tomorrow and other fuels such as coal, gas, home heating oil and briquettes, from 1 May 2026
- €5,000 VRT relief for electric vehicles to be extended by one year until end of 2026
- €1.1bn package to include investment in retrofitting public buildings
- €209m to go towards climate action plan and environmental leadership programme
- €3.5bn to ESB and EirGrid to strengthen energy security and accelerate transition to renewable energy
Cigarettes and bets
A price of a pack of 20 cigarettes is increasing again, with excise duty on other tobacco products also rising. Minister Donohoe also announced plans to legislate for a pool betting duty.
- Duty on a pack of 20 cigarettes to increase by 50c, likely pushing cost of most popular brands to almost €19 for the first time
- Excise duty on other tobacco products to rise on a pro-rata basis
- Tax of 50c per millilitre on nicotine-containing e-liquid for vapes announced in September to come into effect on 1 November
- This will add €1.23 (including VAT) to the costs of a standard 2ml disposable vape and more than double the typical cost of a 10ml bottle of liquid for reusable vapes from €5 to €11.15.
- Excise duties on alcohol remain the same
- Gambling Regulatory Authority to become more authorised in area of pool betting, with a duty charge to be introduced in Budget 2027
Read more:
Budget 2026 live updates as they happen
Budget 2026 will 'invest in our future' and secure jobs, says Donohoe
Health and disability
Minister Chambers pledged what he described as record-level funding of €27.4bn for the Department of Health for 2026.
An allocation of €3.8bn has also been committed to the Department of Children, Disability and Equality for disability services.
- Increase in acute hospital capacity of at least 220 beds and expansion of diagnostic services
- Increase of at least 28- community beds and reduction in community waiting lists
- 500 more nursing homes, increased staffing and expansion of mental health services
- 250 new residential care placements, providing care to over 9,000 people
- 6,500 private assessments to reduce delays for families awaiting assessments
Education and third level
The Department of Education and Youth will receive funding of €13.1 billion for 2026, while the Department of Further and Higher Education will receive almost €5bn.
- Additional 1,717 Special Needs Assistants (SNAs) and 1,042 new teaching posts
- New teaching posts includes 860 additional teachers working across SNA settings in mainstream, special classes and special schools
- Additional funding for DEIS Plus and new DEIS plan
- Additional €50 for primary and special schools and €20 for post-primary under standard capitation rates paid to schools
- Permanent €500 reduction in student contribution fees
- Focus on increased delivery of apprenticeships to support key infrastructure projects
- 1,110 new places in key health and social care professions
Transport
Transport initiatives are to be given €4.7bn next year, with a focus on public transport. The MetroLink project will also be allocated €2bn, as previously announced.
- Rollout of DART+ and Bus Connects programmes in Dublin and other cities to receive funding under package
- Phase one of the Cork Area Commuter Rail service and the Enterprise fleet replacement project also targeted
- A number of greenway and active travel projects included in the funding
Justice and defence
Minister Chambers announced €6.17bn for the Department of Justice, Home Affairs and Migration, with a focus on recruiting new gardaí. Foreign Affairs and defence also received a boost.
- Up to 1,000 trainee gardaí to be recruited next year, with a further 200 civilian staff
- Further intakes into garda reserve and €19m to increase the budget for garda overtime
- €39m pledged for the Irish Prison Service and €11m for Courts Service
- Over €6.7m for Irish Probation Service
- €11.5m additional funding for domestic and gender-based violence initiatives
- Overseas development aid increased by €30m
- Recruitment of 400 new Defence Forces members targeted
- New Defences Forces uniforms as well as a new body armour system
- Armoured personnel carriers will also be upgraded
Farming
A total of €2.3bn has been allocated to the Department of Agriculture, Food and the Marine for 2026.
- Farm consolidation (stamp duty) relief, farm restructuring (CGT) relief and the young trained farmer (stamp duty) relief are all being extended to the end of 2029.
- Funding for bovine TB eradication increasing by €85m to €157m
- €50m for tillage support schemes, beef and sheep schemes to be maintained
- €20m increase in spending on the ACRES biodiversity scheme, with funding to reach €280m in 2026
- €20m in funding will go towards the continuation of the National Sheep Welfare Scheme, which assists over 17,000 farmers.
- €7.4 million for Bord Iascaigh Mhara programmes to support and enable a sustainable Irish seafood sector
- A total of €35m will be provided to the World Food Programme, to support people affected by emergencies, conflict and climate change internationally
Sport
Minister Chambers put a particular focus on football when announcing the sport package, saying Irish clubs have struggled to keep pace with other youth development structures abroad.
- Funding of €3m for League of Ireland club academies, short of €4.45m requested by the FAI
- Funding part of €10.7m increase for Sport Ireland
- Additional €1.6m towards inter-county Gaelic games players
- €983,000 for the GAA, €727,000 for the IRFU and further €1,5m for the GPA
