Budget 2027 brings PRSI relief for SMEs, a new €50,000 tax-free investment account, tax cuts and a €250bn infrastructure plan.
In his Budget 2027 speech, the Minister for Finance Simon Harris, TD, said the Government remains focused on ensuring work pays while supporting businesses that create jobs and economic activity.
To help offset the impact of planned increases in the National Minimum Wage, the Government will increase the employer PRSI threshold from €552 to €600 per week from 2027. Harris said the measure would reduce employers’ PRSI costs by between €650 and €700 annually for each employee below the new threshold.
“People need to feel the benefits of economic growth in their daily lives and in their pockets”
The Minister said the Government remains focused on ensuring work pays while supporting businesses that create jobs and economic activity.
Changes were also announced to Capital Acquisitions Tax thresholds. The Group A threshold, which primarily applies to inheritances and gifts from parents to children, will increase from €400,000 to €420,000. The Group B threshold will rise from €40,000 to €44,000, while the Group C threshold will increase from €20,000 to €22,000.
Looking beyond the headline measures, Harris said the Government would examine how to improve labour market participation among people with disabilities and remove barriers to employment.
Summing up the Government’s approach, he said today’s budget seeks to balance immediate support for households and businesses with long-term investments to strengthen Ireland’s economy and public finances. “People need to feel the benefits of economic growth in their daily lives and in their pockets,” he said.
KEY NUMBERS: Budget 2027 Business Measures
- €250bn infrastructure investment planned over the next decade
• €50,000 tax-free threshold for new Investment Account
• €12,000 maximum annual Investment Account contribution
• 1% annual tax on Investment Account balances above €50,000
• Employer PRSI threshold rises from €552 to €600 weekly
• €650-€700 annual employer saving per eligible employee
• €1.3bn personal tax package for households and workers
• €9.5bn budget surplus forecast for 2027
Editorial takeaway: Budget 2027 combines immediate cost relief for employers with a landmark retail investment reform and a long-term infrastructure pipeline designed to support economic growth and competitiveness.
Summary of Budget 2027 measures
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Employer PRSI Relief for SMEs
To offset the impact of the increase in the National Minimum Wage, the Government will increase the employer PRSI threshold from €552 to €600 per week from 2027.
- Estimated saving of €650 to €700 per employee annually below the threshold.
- Aimed at easing labour cost pressures on employers. [gov.ie]
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€1.3bn Personal Tax Package
While primarily a household measure, the Government believes lower personal taxation will support labour market participation and consumer spending.
Measures include:
- Standard Rate Cut Off Point increased by €2,500 to €46,500.
- Personal, Employee and Earned Income Tax Credits increased by €125.
- Home Carer Tax Credit increased by €100.
- USC threshold increased from €28,700 to €30,300. [gov.ie]
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New Irish Investment Account
One of the most significant structural business and finance reforms in the budget.
Features include:
- €50,000 tax-free threshold.
- 1% annual tax on amounts above €50,000.
- Maximum annual contribution of €12,000.
- Available from 1 July 2027.
- Eligible investments include shares, bonds, ETFs and regulated funds.
- No Capital Gains Tax, Dividend Withholding Tax, Investment Undertaking Tax, Life Assurance Exit Tax or deemed disposal within the account.
- Providers will handle tax administration on behalf of investors.
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Long-Term Infrastructure Commitment
The Government has committed to investing more than €250 billion in infrastructure over the next decade.
For business, this has implications for:
- Construction.
- Engineering.
- Housing delivery.
- Transport projects.
- Utilities and energy infrastructure.
- Digital infrastructure.
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Additional Investment in the Future Ireland Fund
An extra €1 billion will be transferred to the Future Ireland Fund in 2027, in addition to the planned contribution of approximately €4.8 billion.
The fund is intended to help finance future spending pressures associated with ageing demographics and economic shocks.
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Continued Budget Surpluses
The Government forecasts:
- A €6.7bn surplus in 2026.
- A €9.5bn surplus in 2027.
Business groups often view strong public finances as supportive of economic stability and future investment planning.
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Capital Acquisitions Tax Changes
Inheritance and gift tax thresholds are increasing:
- Group A: €400,000 to €420,000
- Group B: €40,000 to €44,000
- Group C: €20,000 to €22,000
This is particularly relevant for family businesses, succession planning and wealth transfer
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Labour Market Participation Measures
The Government says it will examine further measures to support employment among people with disabilities and remove barriers to workforce participation.
For employers, this signals a continued policy focus on expanding labour supply and workplace inclusion.
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