Overview

• Finance Minister Paschal Donohoe has confirmed income tax bands will not be indexed for 2026.
• A cut in VAT for hospitality from 13.5% to 9% is expected next year alongside an extension of the 9% VAT on gas and electricity.
• A VAT reduction for new‑build apartments is being readied to revive stalled schemes, with up to 40,000 permitted units cited by government.
• The Low Pay Commission has recommended lifting the minimum wage by about €0.65 to €14.15, with related USC and employer PRSI tweaks anticipated for lower-paid workers.
• Welfare changes are being negotiated with targeted increases of at least €8 a week on the table, a €500 permanent cut to college fees signed off, and senior sources indicating the renter’s tax credit may stay at €1,000 as ministers warn of political backlash.