What changed for 2027
- Personal tax credit €2,000 → €2,125 for a single person, €4,000 → €4,250 for a married couple or civil partners.
- Employee (PAYE) tax credit €2,000 → €2,125, and the earned income credit for the self-employed the same.
- Home Carer Tax Credit €1,950 → €2,050.
- Rent Tax Credit €1,000 → €1,150 for a single renter and €2,000 → €2,300 for a jointly assessed couple, for 2027 and 2028.
A single employee now starts the year with €4,250 of credits, €250 more than in 2026. Every credit comes off your tax bill euro for euro, so the €250 is €250 less income tax for anyone who pays at least that much.
All the main tax credits, 2026 and 2027
| Credit | 2026 | 2027 |
|---|---|---|
| Personal tax credit, single | €2,000 | €2,125 |
| Personal tax credit, married or civil partners | €4,000 | €4,250 |
| Employee (PAYE) tax credit Capped at 20% of your PAYE pay | €2,000 | €2,125 |
| Earned income tax credit For the self-employed; with the PAYE credit, €2,125 in total | €2,000 | €2,125 |
| Home Carer Tax Credit (max.) | €1,950 | €2,050 |
| Single Person Child Carer Credit | €1,900 | €1,900 no change announced |
| Age tax credit, single or widowed (65+) | €245 | €245 no change announced |
| Age tax credit, married or civil partners (65+) | €490 | €490 no change announced |
| Widowed person or surviving civil partner, no dependent children | €2,540 | see note |
| Incapacitated Child Tax Credit | €3,800 | €3,800 no change announced |
| Dependent Relative Tax Credit | €305 | €305 no change announced |
| Blind person, single or one spouse | €1,950 | €1,950 no change announced |
| Rent Tax Credit, single (max.) The new amount applies for 2027 and 2028 | €1,000 | €1,150 |
| Rent Tax Credit, jointly assessed couple (max.) | €2,000 | €2,300 |
| Mortgage Interest Tax Credit (max.) | €1,250 | no extension announced |
"No change announced" means Budget 2027 did not mention the credit. The widowed person's credit has risen with the personal credit in past Budgets, but the Budget 2027 documents do not set out its 2027 amount. Revenue publishes the complete 2027 chart in January, and we will update this table then.
How a tax credit works
Income tax is worked out on your pay first: 20% up to your standard rate band and 40% above it. Your tax credits are then taken off that figure. They are not a deduction from your pay, they come off the tax itself.
Take a single person on €50,000 in 2027. Tax before credits is €46,500 at 20% plus €3,500 at 40%, €10,700. Take off the personal and employee credits, €4,250, and the tax due is €6,450, against €7,200 in 2026.
If your credits are bigger than the tax you owe, you pay no income tax, but you do not get the unused credit back. That is why someone on €20,000 gains nothing from higher credits: their tax was already nil.
Credits you have to claim yourself
The personal and employee credits are given to you automatically through your employer. Others only apply if you ask for them, in Revenue myAccount under "Manage your tax": the Rent Tax Credit, the Home Carer Tax Credit, the Single Person Child Carer Credit, the Dependent Relative Tax Credit, the Incapacitated Child Tax Credit and relief on medical expenses. Claims for past years go in through your income tax return for that year.
Where this comes from
2026 credits: Revenue, Tax rates, bands and reliefs. 2027 changes: Department of Finance, Budget 2027: Tax Policy Changes, sections 2.1 and 3.1. Checked on 6 October 2026.
Tax credits 2027: common questions
What is the personal tax credit for 2027?
€2,125 for a single person and €4,250 for a married couple or civil partners, up €125 and €250 from 2026.
What is the PAYE tax credit for 2027?
The employee (PAYE) tax credit is €2,125 from 1 January 2027, up from €2,000. It can never be more than 20% of your PAYE pay.
How much is the Rent Tax Credit in 2027?
Up to €1,150 for a single renter and €2,300 for a jointly assessed couple, for the 2027 and 2028 tax years. In 2026 it is €1,000 and €2,000.
How much is the Home Carer Tax Credit in 2027?
Up to €2,050, from €1,950. It is reduced once the carer's own income passes €7,200 and is gone at €11,300.
Do I need to do anything to get the new credits?
No, not for the personal and employee credits: Revenue updates your Tax Credit Certificate and your employer applies it from your first payslip of 2027. Credits you claim yourself, such as the Rent Tax Credit, still need a claim in myAccount.