Overview

• Government keeps the overall €9.4bn package but reallocates €150m from tax to bring public spending to €8.1bn and reduce the tax envelope to €1.3bn.
• Core social welfare rates, including the State pension, rise by €10 a week from January 2026, with a full Christmas bonus maintained.
• The national minimum wage increases by 65c to €14.15 on January 1, 2026, alongside a widened 2% USC band; broad personal tax bands remain unchanged.
• VAT on cafés, restaurants, delis and hairdressing drops from 13.5% to 9% from July 1, 2026, and the VAT rate on completed apartment sales falls to 9% with immediate effect.
• Housing measures include extending mortgage interest relief through 2026 before a 2027 phase‑out, continuing the renters’ tax credit to end‑2028, and higher carbon tax plus a 50c excise rise on cigarettes; the Basic Income for the Arts becomes permanent.