Larger package of tax measures in Budget than expected

The Budget will include a larger package of tax measures than expected later today.

Tánaiste and Minister for Finance Simon Harris will announce tax changes of €1.65bn, which is €150m more than originally expected due to additional steps to deal with the energy shock.

The point at which people pay the higher 40% rate of tax will be increased by €2,500 to €46,500.

Personal, employee and earned income tax credits will increase by €125 to €2,125 effectively reducing the liability of earners.

As the Government agrees to the recommendation of the Low Wage Commission to increase the minimum wage by 79 cent per hour to €14.94 it will also increase the point at which the 2% rate of Universal Social Charge is paid.

Cumulatively, the changes will mean that for a couple with a joint income of €100,000 they would benefit by €1,500 or a single person on €50,000 would benefit by €750.

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The Government is expected to cut the rate of Carbon Tax to 48 cent per tonne for home heating oil and gas down from their current levels of 71 cent per tonne.

It is understood the tax package would have remained within its ceiling of €1.5bn with the exception of measures to reduce the cost of energy.

There will also be some revenue raising steps included in the Budget.

The bank levy will be rolled over for another year raising €200m.

There will also be increases in taxes on cigarettes and vapes.

Social welfare rates will increase by €10 per week.

The new spending measures in the Budget will remain at their ceiling of €7bn which is an increase of 6% following intense negotiations between Cabinet members and the Minister for Public Expenditure Jack Chambers.

However, in previous years spending overruns have seen the Government break its spending ceilings in previous year including 2026.

Ministers will be delivering their Budget speeches in the Dáil this afternoon. RTÉ News online will have full coverage of the speeches, reaction and analysis. A Budget 2027 special will air on RTÉ 1 and the RTÉ Player from 12.40pm.