What are the key income tax changes in Budget 2026?

Budget 2026 increased the Standard Rate Cut-Off Point (SRCOP) for single persons from €44,000 to €46,000, meaning you can earn an extra €2,000 at the 20% rate before paying 40%. Tax credits increased by €200 to €4,200, saving most workers €200 per year. The 4% USC rate band was increased from €25,760 to €27,496.

How much did the Rent Tax Credit increase?

The Rent Tax Credit increased to €1,000 per year for a single person and €2,000 for a married couple (up from €750/€1,500). It applies to rents paid in 2024, 2025, and 2026. You can claim through Revenue's myAccount service. The credit is refundable — if you don't earn enough to use the full credit, you get a cash refund for the balance.

Did the Help-to-Buy scheme change in Budget 2026?

Budget 2026 confirmed the Help-to-Buy (HTB) scheme is extended to 2029 with no changes to the current terms: up to €30,000 refund of income tax for first-time buyers purchasing new-build homes under €500,000. The First Home Scheme eligibility was also expanded with higher income limits introduced for joint applicants.

What changed for landlords in Budget 2026?

The mortgage interest deductibility rate for landlords increased to 75% (from 70% in 2024). Vacant property pre-letting expenses remain at €5,000. No change to the 2% rent pressure zone cap. The RTB registration fee reduction to €90 per tenancy was made permanent.

Were there changes to the pension auto-enrolment timeline?

Budget 2026 confirmed the My Future Fund auto-enrolment system will launch in 2026 as planned. The phase-in schedule remains unchanged: 1.5% (Years 1-3), 3% (Years 4-6), 4.5% (Years 7-9), 6% (Year 10+). Employers must register with the scheme by mid-2026.

Budget 2026 Guide

Budget 2026 Ireland: Every Tax Change That Affects Your Pay

Budget 2026 brought changes to income tax SRCOP, USC bands, tax credits, the Rent Tax Credit, and Help-to-Buy. Here's every change broken down — and what it means for your take-home pay. Use our Budget 2026 Calculator to see your personal impact.

Key Changes at a Glance

SRCOP Increase

€44,000 → €46,000

+€400/year

Tax Credits

€4,000 → €4,200

+€200/year

USC 4% Band

€25,760 → €27,496

+€52/year

Rent Credit

€750 → €1,000

+€250/year

Take-Home Pay: Before vs After

See how much extra you take home under the new 2026 rules compared to 2025:

Salary	2025 Net Pay	2026 Net Pay	Extra in Pocket
€35,000	€29,970	€30,170	+€200
€45,000	€37,060	€37,460	+€400
€55,000	€42,350	€42,950	+€600
€75,000	€52,682	€53,282	+€600
€100,000	€64,657	€65,257	+€600

* Based on single person with full tax credits. Does not include Rent Tax Credit. Use our Budget Calculator for personalised results.

Detailed Breakdown

💰 Income Tax

Standard Rate Cut-Off Point (Single)€44,000 → €46,000 (+€2,000)

Personal Tax Credit€1,875 → €1,975 (+€100)

PAYE Tax Credit€1,875 → €1,975 (+€100)

Total Tax Credits€3,750 → €3,950 (+€200)

📊 Universal Social Charge (USC)

0.5% band ceiling€12,012 (unchanged)

2% band ceiling€25,760 → €27,496 (+€1,736)

3% band ceiling€70,044 (unchanged)

8% rateAbove €70,044 (unchanged)

The 2% USC band ceiling increase means more income is taxed at 2% instead of 3%, saving ~€52/year for mid-earners.

🛡️ PRSI

No changes to PRSI rates or thresholds in Budget 2026.

Employee rate: 4.0% (on earnings above €18,304)

Self-employed rate: 4.1%

🏠 Rent Tax Credit

Single person€750 → €1,000 (+€250)

Married/civil partnership (joint)€1,500 → €2,000 (+€500)

Refundable credit — can be claimed for rents paid in 2024, 2025, and 2026. Apply via Revenue myAccount.

📋 Other Changes

Help-to-Buy schemeExtended to 2029

First Home SchemeWider eligibility

Mortgage interest deductibility (landlords)70% → 75%

RTB registration fee€90 (permanent)

Minimum wage€13.70 → €14.25

Pension auto-enrolment (My Future Fund)On track for 2026 launch

Frequently Asked Questions

When do Budget 2026 changes take effect?

Most income tax changes (SRCOP, USC bands, tax credits) take effect from 1 January 2026, the start of the Irish tax year. Rent Tax Credit changes are backdated to apply for rents paid in 2024. Minimum wage changes took effect in October of the previous year.Calculate your Budget 2026 impact →

How much will I save from the SRCOP increase?

The €2,000 SRCOP increase means an extra €2,000 of income is taxed at 20% instead of 40% — saving you €400 per year (€2,000 × 20%). Combined with the €200 tax credit increase and USC band changes, a mid-earner on €50k saves approximately €650 per year.Calculate your Budget 2026 impact →

Do I need to do anything to claim the new tax credits?

No — Revenue automatically applies tax credit changes through your RPN (Revenue Payroll Notification). Your employer's payroll system will update automatically. For the Rent Tax Credit, you need to submit a claim through Revenue's myAccount service.Calculate your Budget 2026 impact →

Were there any changes to CGT or CAT in Budget 2026?

No changes to Capital Gains Tax (33%) or Capital Acquisitions Tax (33%) in Budget 2026. CAT Group thresholds remain at €400,000 (Group A), €40,000 (Group B), and €20,000 (Group C). No changes to the annual CGT exemption amount.Calculate your Budget 2026 impact →

How do I check if my employer has applied the new tax bands?

Check your payslip for your tax credits and SRCOP. Log into Revenue's myAccount to view your current RPN. If the new rates aren't showing by February 2026, contact Revenue through myAccount or call the PAYE helpline.Calculate your Budget 2026 impact →