Tánaiste Confirms Budget 2026 Tax Measures Effective 1 January

Dublin: The Tánaiste and Minister for Finance, Simon Harris TD, has confirmed that key tax measures outlined in Budget 2026 are now in force. The Tánaiste said the package is designed to strengthen the economy, reward work, and support households and enterprises.

Universal Social Charge (USC)

• Minimum wage rises to €14.15 per hour
• The 2% USC rate ceiling increases to €28,700, ensuring full-time minimum-wage earners stay out of higher USC rates
• The reduced USC rate for medical card holders earning under €60,000 is extended to end-2027

Supports for Renters and Homeowners

Rent Tax Credit

• Extended for 2026–2028
• Worth €1,000 for single taxpayers
  €2,000 for jointly assessed couples

Mortgage Interest Tax Relief

• Extended to 31 December 2026
• Applies to increases in interest paid over 2022
  • 2025 claims: up to €1,250 per property
  • 2026 claims: up to €625, claimable from 2027

Climate and Transport Measures

Benefit-in-Kind (BIK)

• A new EV-only category (A1) applies from 2026
• Reduced BIK rates of 6–15% depending on annual business mileage

Vehicle Registration Tax

• EV VRT relief extended to 31 December 2026

Energy Costs

• The 9% VAT rate for gas and electricity is extended to 2030, supporting households with ongoing energy expenses

Government Commitment

These measures mark the first of five budgets under the Programme for Government, aimed at sustaining growth, protecting living standards, and backing businesses and workers.

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