The Government is taking the wraps off its first budget since being installed at the start of the year. A less flashy affair than previous years is promised, with the €9.4 billion package shorn of generous once-offs like double child benefit payments and electricity credits. So, what does Budget 2026 have for you and your pocketbook?

Taxation rework

The tax package has been pared back by €200 million to allow for more targeted spending in supports for the most vulnerable – meaning that €1.3 billion, not €1.5 billion, in taxation measures in this budget

Personal tax and minimum wage

No broad-strokes personal tax packageMinimum wage goes up by 65c to €14.15c per hourIn order to avoid penalising minimum wage earners, the Universal Social Charge (USC) 2 per cent rate band raises to €28,700

Welfare

There will be a €10 across-the-board increase to core weekly welfare payments including the old-age pensionA “Christmas bonus” double payment is likelyChild support payments will increase by €8 for kids under 12 and €16 for those aged 12 and overEligibility for fuel allowance will be extended to those receiving working family paymentsIncome thresholds for the working family payment will go up by €60The income disregard for the carers’ allowance is also expected to increase by €375 for a single person up to €1,000 and €750 for a couple, up to €2,000

Childcare, children and disabilities

A significant increase in spending on disabilities is on the cards – at least €500 million, but potentially more than €600 millionThere will be money for “thousands” more childcare places and wage increases for those working in the sectorThe back-to-school clothing and footwear allowance will be extended to two and three year olds

Education

A new DEIS+ scheme for schools with the highest levels of education disadvantage860 new special education teachers1,700 new SNAsNew Education Therapy Service to roll our therapy supports directly into special schoolsIncrease in school funding across primary and post-primary schools

Third level

Fees for students will come down by €500 on a permanent basis, to €2,500. This will be experienced by many as an increase in real terms, as they have been temporarily lowered to €2,000 in recent yearsIncome thresholds for SUSI grants will rise by €5,000 to €120,000 per household

Housing, mortgage holders and renters

Help to Buy to be extendedRenters tax credit extended for three years at its current level of €1,000 for an individual or €2,000 for a coupleVAT on the sale of new apartments to be reduced from 13.5 per cent to 9 per centExemptions or reductions in corporation tax on profits from the sale of some apartments, including Cost Rental schemesMortgage interest tax relief extended for two years, but reduced for the final year. People will be able to claim the existing level of €1,250 for 2025, and €625 for 2026

Energy, climate and utility bills

Lower VAT of 9 per cent on utility bills will be extended for three years to the end of 2028€588 million for SEAI residential and community energy upgrade schemes – an €89 million increase on last year

Transport

Reduced public transport fares will be maintained for next year€5,000 VRT relief for EVs extended to end 2026BIK regime for company cars extended on a tapered basis – worth €10,000 next year, €5,000 in 2027, and €2,500 in 2028. It will be abolished in 2029

Enterprise

VAT on food businesses, catering and hairdressing will reduce from 13.5 per cent to 9 per cent from July 2026This will cost €232 million next year and €681 million in a full yearResearch and Development tax credits will be overhauledThe R&D credit rate will rise from 30 per cent to 35 per centThe first year payment threshold rises to €87,500 to support smaller projectsCGT revisions: entreprenurial relief reformed with the lifetime limit raised from €1 million to €1.5 millionThe Special Assignee Relief Programme has been extended for five years and increased minimum qualifying income raised to €125,000 per yearBanking levy extended by another year with a target yield of €200 million

Health

The final allocation for health will be €27.3 billion, an increase of €1.5 billion on 2025300 more staff for mental health services100 more clinicians for mental health crisis, including specialist teams to be placed in model 4 emergency departments out of hoursNew crisis resolution teams, including drop-in crisis cafes to be established next year

Justice

Up to 1,000 additional gardaí in 2026More money for body cameras, victim support, youth diversion and domestic violence programmesMore spending on resources to speed up immigration processing

The Arts, Sports and Education

Basic Income for Artists scheme to be retained on a permanent basis, rather than as a pilot schemeThe Section 481 film tax credit will see a new 40 per cent rate of relief for productions with €1 million of spending on relevant visual effects work, up to a maximum of €10 million per productionThe Digital Games tax credit will be extended for six years until the end of 2031€10 million more for sports, including €3 million for the FAI’s academy system€15 million for An Post€33 million for the National Broadband Plan

Agriculture

Increased budget including more funding for the new TB action plan

Old reliables

Excise duty goes up by 50 cent on a box of cigarettes with pro rata increase on other tobacco products