Teagasc Budget 2027 Summary

By Kevin Connolly, Teagasc Financial Management Specialist

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Main Headline Items

• The income tax standard rate bands have been increased by €2,500 for the single band with corresponding increases for other bands. The income tax rates (20% & 40%) remain unchanged.
• Key personal tax credits have also been increased by €125.
• There has also been a realignment of the USC 2% & 3% bands in line with the increase in the minimum wage.
• PRSI rates already increased by 0.15% from 1st October 2026 – the Class S rate is 4.35%.
• The Accelerated Capital Allowances for Farm Safety Equipment scheme has been extended until 31 December 2029 with a further 12 items added to the eligible list.
• The Succession Partnership Tax Credit has been increased to an annual €10,000 for 5 years and the 3 year holding period has been abolished for registrations from 1st January 2027.
• The VAT flat rate farmer addition rate is to increase from 4.5% to 4.8% from  1st January 2027.
• The rate of Capital Gains Tax (CGT) is reduced from 33% to 31% for disposals (other than development land) from 7 October 2026.
• The Capital Acquisitions Tax (CAT) thresholds were increased – effective from 7 October 2026. There was no change to the CAT rate or to the operation of Agricultural Relief.
• Stamp Duty rates and reliefs remain unchanged.
• There have been changes to Social Protection Payments for 2027 with a general €10 weekly increase applied.
• Additional funding has been allocated for specific measures relating to Agriculture.