Budget 2027 Calculator Ireland

What the Budget 2027 Calculator does

The Budget 2027 Calculator estimates how the measures announced on 6 October 2026 could change a household’s annual position in 2027 compared with the 2026 baseline.

It is designed around a practical question: how much better or worse off might my household be?

Instead of showing one headline tax measure in isolation, the calculator brings together several changes that can affect the same household:

• PAYE Income Tax bands and core tax credits;
• Universal Social Charge;
• Class A employee PRSI;
• the Rent Tax Credit;
• the announced childcare fee cap;
• and selected welfare/support increases in Advanced mode.

The result is shown as an estimated annual change and an average monthly equivalent. The detailed results also separate payroll changes, rent-credit changes, childcare savings and selected support increases so you can see what is driving the total.

This is deliberately different from the Take-Home Pay Calculator, which is better for examining one salary under one tax year in detail. The Budget calculator is a year-on-year household comparison.

Budget 2027 tax measures modelled

For a basic single PAYE employee, the calculator compares the 2026 rules with the headline 2027 rules announced in Budget 2027.

The main Income Tax changes encoded are:

• the single-person standard-rate band increases from €44,000 to €46,500;
• the Single Person Tax Credit increases from €2,000 to €2,125;
• the Employee Tax Credit increases from a maximum €2,000 to €2,125;
• the married/civil-partner one-income standard-rate band increases from €53,000 to €55,500;
• the maximum two-income married/civil-partner standard-rate band increases from €88,000 to €93,000;
• the Home Carer Tax Credit increases by €100 where the household qualifies.

The calculator also models the announced USC change. The first two USC bands in 2027 are modelled as 0.5% on the first €12,012 and 2% on the next €18,288, so the 3% rate begins after total income of €30,300, compared with €28,700 in 2026.

The €13,000 annual USC exemption remains in the model.

Class A PRSI is included because it affects actual 2027 take-home pay even though the October 2027 increase was already legislated separately from the Budget. The annual comparison therefore uses 4.35% for the first nine months of 2027 and 4.50% for the final three months for employees above the relevant pay threshold. That prevents the calculator from overstating the gain from the Budget tax measures.

Married and two-income households

Joint assessment is more complicated than a single salary calculation because standard-rate bands and credits can be allocated between spouses or civil partners.

This calculator uses a transparent annual approximation.

For a married/civil-partner household with two incomes, the model starts with the main married standard-rate band and adds the lower of:

• the lower earner’s income; or
• the additional transferable limit for the selected tax year.

For 2027 the model therefore allows the standard-rate band to rise as high as €93,000 where the second income is sufficient.

Employee Tax Credits are calculated for each PAYE income entered, subject to the relevant annual maximum.

Advanced mode also lets you include the Home Carer Tax Credit. That input should only be selected where the household actually qualifies. The calculator does not reproduce every Revenue restriction around the Home Carer credit, so it should not be used as an eligibility checker.

If your Revenue Tax Credit Certificate contains unusual allocations, multiple jobs, restricted credits or other adjustments, use the dedicated Income Tax Calculator as a second check.

Rent Tax Credit change

Budget 2027 increases the maximum Rent Tax Credit from €1,000 to €1,150 for an individual and from €2,000 to €2,300 for a jointly assessed couple.

The calculator does not automatically assume everyone receives the full increase.

It calculates 20% of the qualifying rent entered and then applies the statutory cap for each year. It also limits the usable credit to the modelled Income Tax liability available to absorb it.

That matters because a tax credit cannot reduce Income Tax below zero.

For example, a single renter paying enough qualifying rent to reach both annual caps and with sufficient Income Tax liability can gain an additional €150 in 2027 from this measure.

A jointly assessed couple in the equivalent position can gain up to €300.

For a more detailed rent-only calculation, use the Rent Tax Credit Calculator.

Childcare fee-cap modelling

Budget 2027 announced a monthly childcare fee cap of €550, compared with the previous €735 cap, for eligible children up to senior infants.

The announced implementation timing is important.

The calculator models the new cap from September 2027, so the 2027 calculation includes four months of potential savings rather than pretending the measure applies for a full calendar year.

If a current monthly fee is at least €735, the maximum modelled saving is:

€735 − €550 = €185 per month

Across September to December:

€185 × 4 = €740 per eligible child in 2027

A family with two eligible children could therefore see up to €1,480 in the 2027 calendar-year comparison, subject to the actual provider fee and scheme rules.

The calculator does not determine whether a particular childcare provider, child or fee qualifies. It is a Budget-impact estimate, not an NCS eligibility decision.

Selected welfare and support measures

Advanced mode can include several announced increases where they apply to the household.

The model currently allows you to enter:

• adults receiving a qualifying core weekly welfare payment, modelled at an additional €10 per week;
• children receiving Child Support Payment, modelled at an additional €6 per week;
• Fuel Allowance claims, modelled at an additional €5 per week for 28 weeks;
• Living Alone Increase recipients, modelled at an additional €3 per week;
• recipients of the announced new €500 annual disability-support payment.

Only enter payments that the household actually receives.

The calculator intentionally does not assume welfare entitlement from salary, family size or age. Eligibility for Irish social-protection payments can depend on contribution records, means tests, household composition, residence and other conditions.

It also does not attempt to model every one-off or sector-specific Budget measure.

Worked example

Consider a single PAYE employee earning €60,000 a year who pays sufficient qualifying rent to reach the Rent Tax Credit cap and has one child affected by the childcare fee cap.

The calculator first estimates the employee’s 2026 payroll position using:

• a €44,000 standard-rate band;
• €2,000 Single Person Tax Credit;
• up to €2,000 Employee Tax Credit;
• 2026 USC bands;
• the blended 2026 Class A PRSI rates.

It then recalculates the same €60,000 salary under the 2027 rules:

• €46,500 standard-rate band;
• €2,125 Single Person Tax Credit;
• up to €2,125 Employee Tax Credit;
• the wider 2% USC band;
• the 2027 PRSI blend.

The difference between those two net-pay calculations becomes the payroll component.

The Rent Tax Credit component can add up to another €150 for a single renter.

If the child’s monthly childcare fee is €735 or more, the calculator adds €740 for the four-month September-to-December childcare saving.

Those amounts are then combined into the estimated annual household change.

This worked example demonstrates why the headline tax cut is not the same as the final household result. Different measures interact with different parts of the household budget.

What the result does not include

The calculator is intentionally conservative about measures it cannot infer reliably.

It does not automatically include:

• salary increases negotiated with an employer;
• the 2027 national minimum-wage increase;
• mortgage-rate changes;
• electricity or fuel-price movements;
• changes in private health-insurance premiums;
• changes in investment income;
• self-employed tax;
• employer pension changes;
• tax credits not explicitly modelled;
• every social-welfare payment;
• every childcare eligibility condition.

A worker receiving the national minimum wage should treat the wage increase as a separate change in gross earnings rather than a tax-rule saving. Employers can examine that change using the Employer Cost Calculator.

Why your payslip may differ

This calculator uses annualised assumptions.

Real PAYE is operated through payroll and can differ because of:

• cumulative versus Week 1 treatment;
• Revenue Payroll Notifications;
• benefits in kind;
• bonuses and overtime;
• multiple employments;
• pension contributions;
• share remuneration;
• mid-year job changes;
• PRSI class;
• pay-frequency effects around PRSI thresholds.

The calculator is therefore best used to estimate direction and scale, not to reproduce a future payslip to the cent.

Frequently asked questions

How much better off will I be after Budget 2027?

There is no single answer. It depends on income, household tax status, rent, childcare and any supports received. Enter your own figures and the calculator compares the modelled 2026 and 2027 position.

Does the calculator include the new Rent Tax Credit?

Yes. It compares the €1,000 individual / €2,000 joint 2026 caps with the €1,150 individual / €2,300 joint 2027 caps and also checks the Income Tax available to absorb the credit.

Does it assume twelve months of childcare savings?

No. The calculator models the announced €550 monthly cap from September 2027, so only four months of savings are included in the 2027 calendar-year result.

Does Budget 2027 reduce PRSI?

No. The calculator includes the already-legislated Class A PRSI increase from October 2027 because it affects the actual year-on-year take-home comparison.

Can married couples use the calculator?

Yes. It includes simplified one-income and two-income joint-assessment options. Actual Revenue allocations can differ, so households with complex tax-credit certificates should cross-check the dedicated tax calculators.

Is this an official Government or Revenue calculator?

No. It is an independent planning tool from Compound based on announced rules and published tax parameters. Final legislation and Revenue guidance take precedence.

Method and limitations

The calculator compares two annual scenarios while holding the gross salaries entered constant.

The 2026 scenario uses the existing 2026 Income Tax bands and credits, 2026 USC schedule, blended 2026 Class A PRSI rates and 2026 Rent Tax Credit caps.

The 2027 scenario uses the Budget 2027 Income Tax bands and credits, the announced 2027 USC bands, the 2027 Class A PRSI schedule, and the 2027 Rent Tax Credit caps.

Childcare is calculated as the difference between the entered fee capped at €735 and the same fee capped at €550, multiplied by four months and the number of affected children.

Advanced welfare inputs are simple announced-value multipliers. They do not test eligibility or interactions between payments.

All payroll calculations are annual approximations. The married/civil-partner calculation is a simplified joint-assessment model and does not reproduce every possible Revenue allocation.

Budget measures can also be amended during the Finance Bill process or clarified through later departmental and Revenue guidance. Compound will update the calculator when material implementation details change.

The calculator runs in the browser. Compound does not need the household salary, rent or support figures entered to produce the calculation.

Useful sources

RTÉ — Budget 2027 at a glance

Grant Thornton — Budget 2027 tax tables