Teagasc Budget 2026 Summary

By Kevin Connolly, Teagasc Financial Management Specialist

Download Publication (PDF)

Main Headline Items – Budget 2026

• There has been no change in the income tax standard rate bands or the income tax rates (20% & 40%) .
• There has been no change in the principal tax credits.
• There has also been a realignment of the USC 2% & 3% bands in line with the increase in the minimum wage.
• PRSI rates increased by 0.1% from 1st October 2025 – the Class S rate is 4.2%.
• The Accelerated Capital Allowances schemes for the construction of Slurry Storage facilities and for investment in Energy Efficient equipment have both been extended.
• The VAT flat rate farmer addition rate is to decrease from 5.1% to 4.5% from 1st January 2026.
• There are no changes to the rate of Capital Gains Tax (CGT) or to the main Retirement Relief limits for 2026. CGT Restructuring Relief has been extended and there is an increase in the lifetime limit applying to CGT Entrepreneur Relief.
• There are no changes to the Capital Acquisitions Tax (CAT) rate, thresholds or to the operation of Agricultural Relief.
• Stamp Duty rates remain unchanged. Young Trained Farmer Relief and Consolidation Relief have both been extended.
• There have been changes to Social Protection Payments for 2026 with a general €10 weekly increase applied.
• Additional funding has been allocated for specific measures relating to Agriculture.