Budget 2027 to raise higher-rate tax threshold, keep USC largely unchanged

In the 2027 budget, Finance Minister Simon Harris pledged to make work more rewarding for those who start early. The plan includes raising the entry point for the 40% tax rate from €44,000 to at least €46,000, which would return roughly €400 per year to workers. Alongside this, revisions to tax credits are expected, together lifting disposable income by more than €500 annually.

The widely disliked Universal Social Charge is slated to remain largely intact, with only slight adjustments possible. The Low Pay Commission has suggested a €0.79 increase in the minimum wage to €14.94, which could raise the 2% USC band, though the proposal faces business-cost concerns. Despite pressure from several parties to scrap the USC or cap it at lower earnings, no such reforms are slated for this budget.