| | Legislation for the 2027 tax year |
| Description | Select any sections below where you'd like to find out more 2027 legislation. ▼ Pay as you earn (PAYE) Tax rates remain unchanged for 2027. The emergency PAYE SRCOP for 2027 increases by €2,500, from €44,000 to €46,500. ▼ Tax rates and tax bands | Personal circumstances | 2027 € | | Single or widowed, or surviving civil partner, without a qualifying child | 46,500 @ 20% Balance @ 40% | | Single or widowed, or surviving civil partner, qualifying for single person child carer credit | 50,500 @ 20% Balance @ 40% | | Married or in a civil partnership, one spouse or civil partner with income | 55,500 @ 20% Balance @ 40% | | Married or in a civil partnership, both spouses or civil partners with income | 55,500 @ 20% with increase of 37,500 max. Balance @ 40% | ▼ Tax credits | Tax credit | 2027 € | | Single person | 2,125 | | Married or in a civil partnership | 4,250 | | Employee Tax Credit | 2,125 | | Earned Income Tax Credit | 2,125 |
▼ Universal Social Charge (USC) The 2% USC rate band increases by €1,600, raising the ceiling from €28,700 to €30,300. This ensures full-time minimum-wage earners remain outside the higher USC rate bands. | 2027 € | Rate | | Income up to 12,012.00 | 0.5% | | Income from 12,012.01 to 30,300.00 | 2% | | Income from 30,300.01 to 70,044.00 | 3% | | Income above 70,044.00 | 8% | Reduced USC rates continue to apply for: - Individuals aged 70+ with income up to €60,000
- Full medical card holders under 70 earning up to €60,000
- These reduced rates remain in place until 31 December 2027
▼ National minimum wage (NMW) From 1 January 2027, the NMW rate increases by €0.79 from €14.15 to €14.94 per hour. This affects PRSI thresholds and the 2% USC band ceiling. For all 2027 rates, see the table below: | | Minimum hourly rate of pay (€) | % of National Minimum Wage | | Age 20 and over | 14.94 | 100 | | Age 19 | 13.45 | 90 | | Age 18 | 11.95 | 80 | | Under 18 | 10.46 | 70 |
▼ Benefit in Kind (BIK): Employer-provided vehicles From 1 January 2026: A new Category A1 applies to zero-emission cars. Apply BIK at 6–15% of the car’s OMV, depending on annual business mileage. The temporary OMV reduction remains in place on a tapered schedule: - €10,000 in 2026
- €5,000 in 2027
- €2,500 in 2028
The 48,001 km lower mileage limit for the highest mileage band now applies permanently.
▼ Auto-enrolment retirement savings scheme New AEPNs for 2027 become available from 1 January 2027. You can't import 2027 AEPNs until this date. Employees only have an AEPN available for a valid AE status change. This means many employees won't have an AEPN for you to retrieve in the new tax year.
▼ Foreign earnings deduction (FED) Residents in Ireland for tax purposes who spend time working abroad can claim FED. There are certain conditions which they need to meet to qualify. For more information on qualification rules, check Revenue's guidance. - Extended until 2030
- Maximum claim rises to €50,000
- Extended to include the Philippines and Türkiye
▼ Statutory Sick Pay - Current status: Employers must give employees five statutory sick days in 2025
- Future plans: The planned increases to seven days in 2025 and 10 days in 2026 have been postponed
- Reason for delay: The government is reviewing the scheme’s impact before confirming the next phase
▼ Small benefit exemption There are no changes to small benefit exemption legislation for 2027. The 2026 rules remain in place: - Up to €1,500 in non-cash benefits
- Up to five benefits per employee each year
However, we've improved how your software handles these from the year end update, v29.3/v30. To find out more, visit the record small benefit exemption article.
▼ What does this mean for payroll? Your payroll year end software update includes the legislation changes ready for the 2027 tax year. Just download and install the update before your first 2027 payroll run. We expect to release the update in mid to late November 2026. We'll let you know when it's ready.
▼ Changes to employees RPNs for 2027 reflect any changes to employee's personal tax position, such as tax credits or USC bands.
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