A Financial Planner’s Guide to Budget 2026
Many people eagerly await the government’s budget each year, anticipating the major spending adjustments and the professional and personal effects they will have on business owners.
The Irish Government officially rolled out the Budget 2026 on October 7, 2025, outlining funding allotments for the upcoming year across numerous sectors and industries.
At Moore Wealth Management, we have compiled the most important notes you should know, which will help you with your financial future, and help you better plan your taxes and handle your money in the coming year
Budget 2026 & Personal Finance
Income and Taxation:
USC:
Irish workers can now expect to see a slight increase in their take-home earnings, with the ceiling for the USC 2% rate band increased by €1,318 to €28,700
ETF/Deemed Disposal Rule:
No changes were made to the Deemed Disposal Rule; however, a reduction in the tax rate of Irish and equivalent offshore funds from 41% to 38% with a roadmap to follow early next year to simplify and adapt the tax framework.
Rent:
The Rent Tax Credit is to be extended for another three years to the end of 2028, with VAT on gas and electricity bills to remain at 9% to be extended to 2030.
Housing:
Mortgage Interest Tax Relief is to be extended for a further two years, with a reduced value applying in the final year.
Social Welfare:
The Department of Social Protection was allocated a total of €28.9 billion in Budget 2026, with the core change being an increase to weekly social protection payments of €10 per week.
The package will also see:
- Carer’s Allowance income disregard of €1000 for a single person and €2000 for a couple.
- An increase in the rate of Domiciliary Care Allowance by €20 per month.
- Child Support Payment by €8 for children under 12 and €16 for children over 12.
Budget 2026 for Businesses
Minimum Wage:
The National Minimum Wage will see an increase of €0.65, from €15.50 to €14.15 an hour.
R&D Tax Credits
The Research and Development Tax Credit will be increased from 30% to 35%, while the first-year payment threshold will increase from €75,000 to €87,500 to support smaller research & development projects.
Hospitality VAT:
The biggest point of the budget this year was that the 9% VAT reduction for both the food and catering businesses and hairdressing businesses will come into effect from July 2026, to allow businesses to operate more efficiently with the current cost crisis.
Entrepreneur Relief:
The Capital Gains Tax revised Entrepreneur Relief to increase from €1 million to €1.5 million for disposals made from the 1st of January 2026
Employee Bonuses
The Budget also extended, until the end of 2026, the €10,000 benefit-in-kind-related tax relief for those who choose an electric vehicle as a company car.
Auto Enrolment:
While the My Future Fund Scheme was not mentioned in the Budget 2026, it is still vital to note for both business owners and individuals that the pension scheme created by the government in an attempt to have workers less reliant on the State Pension and build better wealth for retirement, will be implemented from the 1st of January 2026.
For the first three years of this scheme, the contribution rates between the employee and employer will start at 1.5% and the Government will pay 0.5% of your annual salary.
The Auto-Enrolment Scheme has been long-awaited; however, those who are paying tax at the 40% rate will be worse off on this scheme when compared to other readily available pension schemes
While many workers will be disappointed with this year’s budget, it is more vital than ever that you have a better grasp on your financial future, both on a personal and a professional level.
If you need expert, knowledgeable industry advice from Certified Financial Planners™ about what these changes mean for you, talk to our team for tailored advice and planning today.
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