09/10/2025
Let's see what the new 2026 budget will bring to the people of Ireland 😉 A2Z Tax Ireland
Minimum wage
The national minimum wage will increase by 65 cents to €14.15 per hour from 1 January 2026
TAX
Rent Tax Credit
The Rent Tax Credit will be extended for a further 3 years, to the end of 2028
There are no changes to the tax rates and bands.
There are no changes to tax credits.
Universal Social Charge (USC)
The 2% rate band limit for USC will increase to €28,700 (from €27,382) from 1 January 2026.
Value Added Tax (VAT)
The VAT rate on food and catering businesses, and hairdressing services, will be reduced to 9% from 13.5%, from 1 July 2026.
The 9% VAT rate on electricity and gas bills will be extended to 31 December 2030.
Childcare
Help with childcare costs
In the coming months, the Government will set a new maximum fee cap (upper limit) for families paying the highest childcare fees. This only applies to early learning and childcare services that get core funding from the State. The current maximum fee cap for childcare is €295 per week. Parents can continue using the National Childcare Scheme (NCS) to further reduce their childcare costs.
Budget information
revenue.ie
Budget information
Budget information on taxation changes for the upcoming year.
https://www.gov.ie/en/department-of-social-protection/publications/budget-2026/
Budget 2026 latest updates