How will Budget 2027 impact your finances?

Budget 2027 includes income tax cuts, increases in social welfare payments and a range of targeted supports aimed at helping households manage higher living costs.

Accountancy firm KPMG said the measures should provide "welcome relief " for many families, although they are unlikely to fully offset rising costs for every household.

KPMG said the measures would help "cushion the impact of inflation and rising living costs" for many households, although affordability challenges would remain.

But what will the changes mean for you? Here are profiles of four households, to give you a sense of how Budget 2027 might impact your finances.

The figures were calculated by KPMG.

1) Single person, minimum wage (39 hours per week), renter

According to KPMG, a single person earning the minimum wage and renting their home will be €1,536 better off under the measures announced in Budget 2027.

The largest gain comes from the increase in the minimum wage, which boosts their gross earnings by €1,602 over the year. Changes to income tax will provide a further €80 benefit.

However, some of these gains are offset by increases in other charges. The worker's PRSI bill rises by €113, while changes to the Universal Social Charge leave them €32 worse off.

Overall, despite the higher PRSI and USC costs, the increase in earnings means this worker is €1,536 better off under Budget 2027.

2) Married couple, two incomes totalling €140,000, two school-age children, mortgage

A married couple with two school-age children, a mortgage, and a combined income of €140,000 will be €1,322 better off under Budget 2027, according to KPMG.

The main benefit comes from changes to income tax, including increases to tax credits and the standard rate bands, which provide a combined benefit of €1,500. They also gain €32 through adjustments to the Universal Social Charge.

These gains are partly offset by higher PRSI contributions, which increase by €210 over the year. There is no change to child benefit for this household.

However, if the family was in receipt of the mortgage interest tax credit in 2026, some of these gains would be reduced by the scheduled expiry of that measure at the end of this year.

If the family had a child attending a qualifying childcare facility and aged senior infants or younger, they could also benefit from changes to childcare supports announced in Budget 2027.

The monthly fee cap will be reduced from €735 to €550 from next September, allowing savings of up to €740 in 2027 and up to €2,220 over a full year once fully implemented.

3) Young couple, married, two incomes totalling €120,000, renters

According to KPMG, a young married couple who both work, earn a combined income of €120,000 and rent their home will be €1,652 better off under Budget 2027.

The main benefit comes from changes to income tax, including increases to tax credits and the standard rate bands, which leave the couple €1,800 better off over the year. They also gain €32 through adjustments to the Universal Social Charge.

These gains are partly offset by higher PRSI contributions, which increase by €180.

Overall, despite the higher PRSI bill, the combined effect of the tax measures means the couple are €1,652 better off under Budget 2027.

If the couple are hoping to buy their first home, they could also benefit from the increase in the Help to Buy scheme. The maximum relief available under the scheme has increased by €5,000 to €35,000.

4) Retired single person, State pensioner (66 years of age)

A retired single person aged 66 and receiving the State pension will be €829 better off under Budget 2027, according to KPMG.

Their State pension rises by €520 over the year. They also benefit from a €156 increase in the Living Alone Allowance and a €140 increase in the Fuel Allowance.

In addition, changes to the Christmas bonus provide a further €13.

Taken together, the increases in pension and welfare supports leave this pensioner €829 better off under the measures announced in Budget 2027.

Further profiles as well as a debate between Minister for Health Jennifer Carroll MacNeill and Sinn Féin's Pearse Doherty, will feature on Prime Time at 9.35pm on RTÉ One tonight.