Budget changes

Budget 2026: what changed for PAYE workers from 1 January 2026

Written by PAYEWise editorial team, plain-English tax writers working from Revenue sources. Tax review: pending appointment of a named tax-qualified reviewer. Reviewed 28 October 2026.

Page history (2)

28 Oct 2026: USC 2% band ceiling for 2026 recorded as 28,700 euro (up from 27,382) per Budget 2026.
19 Oct 2026: The Oireachtas record shows the Finance (No. 2) Bill 2026 (Bill 98 of 2026) was published on 19 October 2026, took Dáil Second Stage on 20 October and was referred to Select Committee. It is at First Stage on the Oireachtas record and is not yet law. This log has not yet checked its contents.

All updates

Quick answer

Budget 2026 left rates, bands and the main credits unchanged for 2026. The ceiling of the 2% band rose by 1,318 euro to 28,700 euro, keeping a full-time minimum wage worker (14.15 euro an hour) out of the 3% band. The Rent continues for 2026 to 2028 at 1,000 euro for an individual and 2,000 euro for a jointly assessed couple. The Mortgage Interest Tax Credit was extended at a reduced maximum of 625 euro for 2026. The reduced USC rate for medical card holders runs to the end of 2027.

Unchanged

Standard rate band: 44,000 euro single, 53,000 euro jointly assessed one income.
Personal, Employee and Earned Income credits: 2,000 euro each.
USC rates: 0.5%, 2%, 3% and 8%; exemption at 13,000 euro.

Changed

USC 2% band ceiling: 27,382 to 28,700 euro.
Rent Tax Credit: extended to 2026, 2027 and 2028 at the same amounts.
Mortgage Interest Tax Credit: extended for 2026 at half the previous maximum, 625 euro, with the same 2022 balance conditions.
National minimum wage: 14.15 euro an hour from 1 January 2026.

What it means for a review

Nothing in Budget 2026 changes the rules for 2022 to 2025 claims. Each year still uses its own figures, which the calculators on this site hold separately.

Pitfalls

Budget 2027, announced in October 2026, affects 2027 and some measures from 7 October 2026 (such as the CGT rate). It does not change your 2026 PAYE position.

This is independent guidance, not advice from Revenue. Revenue decides your position. You can review any year for free in myAccount.

Sources and review

R48Budget 2026 summaryofficialchecked 2026-10-28
R2Tax rates, bands and reliefs 2022-2026officialchecked 2026-10-28
R12Mortgage Interest Tax Creditofficialchecked 2026-10-28

Last reviewed 2026-10-28 (awaiting sign-off by a named tax-qualified reviewer). Every factual tax rule on this page is backed by a dated Revenue source. Spotted an error? Use the contact page.

Reviewed 2026-10-28. Figures use 2026 rules unless a year is stated.

Changed

USC 2% band ceiling: 27,382 to 28,700 euro.

Rent Tax Credit: extended to 2026, 2027 and 2028 at the same amounts.

Mortgage Interest Tax Credit: extended for 2026 at half the previous maximum, 625 euro, with the same 2022 balance conditions.

National minimum wage: 14.15 euro an hour from 1 January 2026.

Pitfalls

Budget 2027, announced in October 2026, affects 2027 and some measures from 7 October 2026 (such as the CGT rate). It does not change your 2026 PAYE position.

This is independent guidance, not advice from Revenue. Revenue decides your position. You can review any year for free in myAccount.

Sources and review

R48Budget 2026 summaryofficialchecked 2026-10-28
R2Tax rates, bands and reliefs 2022-2026officialchecked 2026-10-28
R12Mortgage Interest Tax Creditofficialchecked 2026-10-28

Last reviewed 2026-10-28 (awaiting sign-off by a named tax-qualified reviewer). Every factual tax rule on this page is backed by a dated Revenue source. Spotted an error? Use the contact page.

Budget 2026: what changed for PAYE workers from 1 January 2026

Unchanged

Changed

What it means for a review

Pitfalls

Related

Budget 2026: what changed for PAYE workers from 1 January 2026

Unchanged

Changed

What it means for a review

Pitfalls

Related