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Budget 2027

Building the capacity for Ireland’s next phase of growth

Ireland steps into Budget 2027 with notable strengths and some constraints. Housing, infrastructure, energy, skills, and cost pressures are now influencing choices for businesses, investors, and households. This Budget should prioritise action: expanding Ireland’s productive capacity, bolstering resilience, and enhancing long-term competitiveness.

Our proposals outline practical steps to support innovation, nurture Irish enterprise, draw in investment, mobilise savings, speed up housing and infrastructure projects, promote clean energy, and simplify processes for employers. The chance is here to look beyond short-term fixes and use tax and fiscal policy to help Ireland shape its next phase of sustainable growth.

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PwC Tax Policy Series: Budget 2026

Budget 2026: Key measures at a glance

Budget 2026 delivers targeted growth-focused reforms to boost businesses, support infrastructure development and secure Ireland’s future.

9.4bn

total budget package.

8.1bn

in spending measures.

1.3bn

in tax measures.

10.3bn

surplus projected for 2025.

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Infrastructure

3.5bn

allocated to accelerate the transition to renewable energy.

2bn

increase in funding for capital projects to €19.1bn.

2bn

allocated to progress MetroLink.

5bn

in capital investment for housing delivery.

558m

for residential and community energy upgrade schemes.

4.5%

VAT cut for new-build apartments to 9%.

1.5bn

increase for the health budget, up to €27.3bn.

Personal Tax

10

increase in the State pension and social welfare rates.

€8-16

increase in child support payments.

9%

VAT rate on gas and electricity extended to 2030.

Business Tax

5%

increase in the R&D tax credit to 35%.

65c

increase in the minimum wage to €14.15.

4.5%

VAT cut for food-led hospitality and hairdressing services to 9%.

Numerous measures seeking to improve Ireland’s competitiveness.


“Budget 2027 must be more than just a small step forward. While Ireland’s model is robust, it’s feeling the pressure. The real challenge is whether policy can adapt swiftly to unlock capacity, attract investment, and support a new wave of Irish growth. The decisions made in this Budget will not only influence next year’s prospects but also determine the nation’s competitiveness for the coming decade. ”

Paraic Burke Partner and Head of Tax at PwC Ireland.


Pauric Burke
Partner and Head of Tax at PwC Ireland.

“Budget 2026 presents a pivotal opportunity to implement far-reaching changes that will shape Ireland’s future trajectory, decisively addressing our nation’s pressing infrastructural, housing and climate challenges.”


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Go deeper on today’s Budget issues

Budget 2027 is Ireland’s chance to turn strength into sustainability. Explore PwC’s practical proposals on tax, housing, innovation, energy, and talent.

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Paraic Burke

Paraic Burke

Head of Tax, PwC Ireland (Republic of)

Tel: +353 87 679 7774

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