What's in and what's out of Budget 2026? Everything we know ahead of Tuesday

TIPPERARY LIVE'S BUDGET 2026 COVERAGE IS SPONSORED BY PREMIER CREDIT UNION

Budget 2026 is set to be announced on Tuesday afternoon, with Minister for Public Expenditure Jack Chambers expected to address the Dáil at around 1pm.

Minister Chambers’ speech will be followed by a similar address by Minister for Finance Pascal Donohoe at approximately 1:45pm.

While some departments’ budgets remained undecided, there are some indications on what has been agreed.

Minister Donohoe has already confirmed that tax bands will remain unchanged. 

The government often adjusts the point at which people pay the higher rate of tax, so earners aren't hit with bigger bills as their salaries increase.

However, this will not be the case this time around, meaning workers who get a pay rise will also pay more tax. 

This should facilitate tax cuts elsewhere though. In particular, a VAT cut for the hospitality industry is expected, which should provide a boost to cafés, restaurants and fast-food outlets.

Government ministers have also confirmed that there will be no repeat of the one-off cost-of-living measures that have featured in recent budgets - a move that has been widely criticised by the opposition parties. 

On housing, the government will look to incentivise apartment building. They will be hoping a cut in VAT on the sale of apartments will help to achieve that. 

The rent tax credit is set to return, after it was included in Fine Gael’s general election manifesto last year. 

The minimum wage could be set for increase, after the State’s Low Pay Commission recommended an increase of 65 cent an hour. 

If the minimum wage is increased, it will likely lead to proportionate increase in the Universal Social Charge. 

Employer's PRSI will also be altered to ensure those on the minimum wage do not fall into the higher 8% band.

There has been no indication as to whether social welfare rates will increase again, although they usually are kept in-line with inflation rates. 

A €500 cut to college fees has become a topic of much debate in the Dáil in recent weeks, but whether it will be included in this year’s Budget remains to be seen. 

The Carers’ Allowance has also become a controversial topic, with the Programme for Government promising to ‘phase out’ the means test for the carers’ allowance.

While the opposition parties want the government to abandon the means test completely, a gradual increase in the income disregards is more likely. 

The government’s spending increase will be one to keep an eye on. The Central Bank, the Irish Fiscal Advisory Council and the Economic and Social Research Institute have all warned that a potential spending increase of €9.4 billion is too large.

With VAT reductions on hospitality, apartment sales and energy, there will be pressure on ministers regarding where to allocate other tax cuts.