Budget 2027: Predicted income tax and rent changes

Budget day is tomorrow, and while conflicting narratives continue from Fianna Fail and Fine Gael continue, here's what we know so far:

In the new budget, workers will begin paying the higher 40% tax rate at €46,000, rather than the current €44,000.

If you earn €46,000 or above, this means €33 extra take home pay each month, or €400 annually.

Likewise, it is hoped renters might get some breathing space in this budget as rents continue to sky rocket.

Taoiseach Micheál Martin has said the renters' tax credit will be increased in the Budget.

The renters' tax credit was introduced in 2022 and has been increased up to a yearly maximum of €1,000 for an individual or €2,000 for a couple who are jointly assessed for tax.

Asked if he supported an increase of around €300, Mr Martin said the credit has been "positive", adding: "We will be increasing it in the forthcoming Budget."

"The only issue I'd have is some people are not availing of it and that's an issue that we need to really examine."

Tánaiste and Finance Minister Simon Harris said there was a "need to help people with the cost of rent", adding he was "positively disposed" to increasing the credit.

"The Programme for Government is clear - that's what unites everybody in Government - that the renters' tax credit is an area that should be increased if possible, and therefore we will look favourably upon that."

On other issues, such as nightlife, the cabinet are still in debate.

Fianna Fáil is allegedly pushing for a €75 million support package for pubs. Since 2005, 2,200 pubs have closed across the country, with 128 on average shutting its doors per year.

The Vintner's Federation Ireland proposed an on-trade sustainability scheme, which would offer a tax credit of €20 for every 50-litre keg of draught beer or cider a pub sells. This would be capped at €20,000 per pub annually, and would cost the State €75 million a year. Apparently, it's still in the running.

The Irish Whiskey Association is requesting an immediate 10% cut in drinks excise duty to stimulate the "domestic and tourist economy" however, cutting excise, which accounts for 10% of the price of a pint, is not likely to be reduced.