Budget 2027 introduces some of the most significant changes to the taxation of savings and investments in recent years, making it a positive budget for investors. Exit tax on funds is coming down again, the new State investment account finally has real figures attached to it, and Capital Gains Tax has been cut for the first time in a very long while.
There is plenty in it for households and business owners too. Below I have set out what changed and when it takes effect. None of this is a substitute for a conversation about your own circumstances, but it should give you a clear picture of where you stand.
| What changed | Detail | Date of change |
|---|---|---|
| Personal Investment Account | €12,000 a year cap, first €50,000 tax-free, 1% above | Opens 1 Jul 2027 |
| Capital Gains Tax | 33% down to 31% | Disposals from 7 Oct 2026 |
| Exit tax on funds | 38% down to 35% | 1 Jan 2027 |
| Rent Tax Credit | €1,150 single / €2,300 couple | 2027 and 2028 |
| Help to Buy | Up to €35,000 | From 7 Oct 2026 |
| Inheritance thresholds | €420,000 / €44,000 / €22,000 | From 7 Oct 2026 |
| Employer PRSI threshold | €552 up to €600 a week | 2027 |
| Standard rate cut-off | €46,500 single, €55,500 one-income couple | 1 Jan 2027 |
Personal Investment Account
We were all very interested to see how this came to light while waiting for figures. From 1 July 2027, a new Personal Investment Account will be introduced for Irish tax residents aged 18 and over who hold a PPSN. You can have one account per person, and it allows you to invest up to €12,000 a year or €1,000 a month if you’d rather drip-feed it. The first €50,000 is tax-free, with a flat 1% a year applying only to the value above that threshold. That is all the tax – no capital gains tax, no deemed disposal and no exit tax.
The account is designed to make investing simpler: eligible investments include shares, bonds, investment funds and certain insurance-based investment products, while crypto and other alternative or complex investments won’t be eligible. It will be managed by the product provider. The logistics and fees and how you access it remain to be seen. Let’s watch this space.
Capital Gains Tax
One of the announcements in Budget 2027 was a reduction in the standard rate of Capital Gains Tax (CGT) from 33% to 31%. The new rate applies to disposals made on or after 7 October 2026. CGT is the tax you pay on the profit when you sell or dispose of an asset that has increased in value. This can include shares, investments, land or property, although different rules and reliefs can apply depending on the asset and your circumstances.
If you’re considering selling investments or other assets, it’s worth reviewing the timing and potential tax implications before deciding. As always, the right approach will depend on your individual circumstances and wider financial plans.
Exit Tax
The Exit Tax rate is dropping. From 1 January 2027 it falls from 38% to 35% – the second cut in two years, after 41% to 38% took effect this January. The same reduction applies to Investment Undertaking Tax on Irish-domiciled funds and equivalent offshore funds, so both regimes move together.
It’s charged on the gain when you cash in a life assurance investment product, regardless of whether anything was sold, and it also applies on the sale of ETF holdings where a gain has been made. Worth knowing that dividend withholding tax on funds hasn’t moved, and the 35% still sits above the standard CGT rate, which Budget 2027 cut to 31%. The government has also committed to abolishing deemed disposal over the lifetime of this government, though no changes were made in this budget.
Rent Tax Credit
The Rent Tax Credit is going up. Budget 2027 increased it by €150, taking it to €1,150 a year for a single claimant, and by €300 to €2,300 for a jointly assessed couple. The increase applies to the 2027 and 2028 tax years, so it’s a two-year measure rather than a permanent one – worth knowing if you’re planning further out.
The credit itself is 20% of the rent you pay, capped at those maximums, so the headline figures are ceilings rather than flat amounts. You need to be renting your principal private residence and not in receipt of State housing support, and the property must be in Ireland. The cap applies no matter how many properties you rent during the year.
If you haven’t claimed for earlier years, you can still do it – claims for 2026 can be made through your Income Tax Return filed in 2027, and it’s a straightforward addition under PAYE Services in myAccount.
Help to Buy
The Help to Buy maximum relief is going up by €5,000, from €30,000 to €35,000, and it took effect immediately – from 7 October 2026, the day after the Budget. It applies where you sign the contract, or for a self-build where you draw down the first part of the mortgage, between 7 October 2026 and 31 December 2029. Contracts signed before 7 October stay at the old €30,000.
The rest of the scheme is unchanged. The refund is still the lowest of three figures – the €35,000 maximum, 10% of the purchase price, or the Income Tax and DIRT you paid in the four years before you apply. It remains for first-time buyers of a new build or self-build, with the qualifying property value still capped at €500,000, and generally requires a mortgage of at least 70% of the property value.
Inheritance thresholds
The inheritance tax thresholds are going up, all three groups. Group A, which covers a child inheriting from a parent, rises from €400,000 to €420,000 – a €20,000 increase. Group B, for relatives like siblings, nieces and nephews, goes from €40,000 to €44,000. Group C, for everyone else, goes from €20,000 to €22,000. All three apply to gifts and inheritances taken on or after 7 October 2026, the day after the Budget.
The rate is unchanged at 33%, and it only applies to the amount above the threshold. So, an inheritance of €450,000 from a parent is taxed on the €30,000 over €420,000, giving a bill of €9,900. For Group A, the increase is worth up to €6,600 in reduced liability.
Employer PRSI threshold
The employer PRSI threshold is going up from €552 to €600 a week for 2027. Staff earning up to €600 a week attract the lower employer PRSI rate, so the change means anyone in that €552–€600 band moves down onto the cheaper rate. The saving comes to roughly €650 to €700 per employee per year.
Standard rate cut-off
The standard rate cut-off point is rising by €2,500 for all earners, so the higher 40% rate now kicks in at €46,500 for a single person, up from €44,000.
For a single parent with the Single Parent Tax Credit, the band rises from €48,000 to €50,500. A married couple or civil partners with one income go from €53,000 to €55,500, and a couple with two incomes have a combined cut-off of €90,500, up from €88,000.
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This article is general information only, based on the Budget 2027 announcements of 6 October 2026. Measures can change as they move through the Finance Bill. It is not financial or tax advice, please speak to a qualified adviser about your own circumstances. The information here should not be relied on in full and does not constitute advice. We have taken care to use accurate and timely source material, but we cannot guarantee that it is accurate as at the date you read it, or that it will remain accurate.