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When is Budget 2026 and what's in it for you - social welfare, tax bands, cost of living supports

Budget 2026 is just hours away and is expected to focus on social welfare, housing, childcare and tax measures, with changes to cigarette and vape prices.

[Finance Minister Jack Chambers (left) and Minister for Public Expenditure Paschal Donohoe ahead of a press conference for the 2025 budget, at the Department of Finance in Dublin. Picture date: Tuesday October 1, 2024.]

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Finance Minister Jack Chambers (left) and Minister for Public Expenditure Paschal Donohoe ahead of a press conference for the 2025 budget, at the Department of Finance in Dublin. Picture date: Tuesday October 1, 2024.(Image: PA Wire/PA Images)

Budget 2026 is just hours away, with households across the country hoping for fresh supports to help ease the ongoing cost of living crisis.

Last year's package included energy credits and social welfare lump sums that offered relief for thousands - but hopes of a repeat have been dampened this time around.

Ministers are still finalising the details ahead of the official announcement tomorrow, Tuesday, October 6, but the Government has already signalled a more restrained approach.

Taoiseach Micheal Martin has confirmed there will be no "universal" cost of living payments in Budget 2026, while Finance Minister Paschal Donohoe was even more direct, saying the Government "will not repeat" last year's widespread handouts.

Minister for Public Expenditure Jack Chambers also stopped short of promising big cash boosts, stating that this year's focus will be on targeted social protection supports, tax adjustments and investment in public services rather than one off payments.

Heres everything you need to know - including when Budget 2026 will be announced, how to watch it live and what's expected for ordinary households.

When is Budget 2026?

Budget 2026 will be announced on Tuesday, October 6, 2025. It will be presented to the Dail in the early afternoon, with Finance Minister Paschal Donohoe expected to start his speech at around 1pm, followed by Public Expenditure Minister Jack Chambers outlining public spending from around 1.45pm. Opposition responses will take place throughout the evening.

Where can I watch Budget 2026?

Both RTE and Virgin Media are expected to provide live coverage on TV. You can also follow live updates on the Irish Mirror's blog.

What's in Budget 2026 for me?

For most workers, there will be little change in take home pay this year. After several years of tweaking income tax bands and USC rates, the Government has seemingly decided to hold steady. Finance Minister Paschal Donohoe confirmed there will be no personal tax changes in Budget 2026, saying the focus this time is on "jobs and investment". Public Expenditure Minister Jack Chambers had already hinted at this, noting that the planned VAT reduction for the hospitality sector leaves limited room for income tax adjustments.

Social welfare recipients, however, can expect a modest boost. Negotiations over the weekend centred on how much weekly payments, including the State pension, should rise. While payments increased by 12 a week last year, sources now suggest a rise of around 10 or 11 is more likely, unless there's a last-minute change. Fine Gael had been pushing to freeze jobseekers' payments, but it's understood that Fianna Fail figures have pushed back.

Housing remains a huge issue and Budget 2026 is expected to include measures aimed at boosting supply. Tax breaks for developers look set to go ahead after internal coalition debates, along with a VAT cut for new apartment builds. The Rent Tax Credit will stay, with reports suggesting only a small increase of about 200. The Help-to-Buy scheme will continue unchanged, capped at 30,000, while the First Home Scheme will remain limited to new builds.

In hospitality, the big change is the planned VAT cut from 13.5% back to 9% for restaurants and cafes, which is likely to come into effect in mid-2026. Hotels are excluded, with ministers saying the lower rate is aimed at supporting smaller food businesses.

Families with young children won't see the promised drop in childcare costs just yet. The Government says it is instead investing in core funding and capacity, hoping to expand the number of places available. Tanaiste Simon Harris said the goal of cutting childcare costs to 200 per month remains, but it will be achieved "over the lifetime of the government" rather than immediately.

Students, on the other hand, will see a permanent cut to college fees, expected to be worth around 500 per year.

A new vaping tax is expected to come into effect on November 1, adding 50c per millilitre of e-liquid. The measure was first announced last year but postponed to give the industry time to adjust. It means the cost of a 10ml refill will jump from around 5 to 11.15, while a disposable vape will rise from 8 to about 9.23

Smokers will also be hit. The Government is expected to increase the price of a packet of cigarettes by 50 cent - pushing the average cost of a standard pack to 18.95, which will be among the highest prices in Europe.

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