Ireland’s Budget 2026, announced on October 7, 2025, introduces a range of measures that impact individuals and businesses filing Form 11 tax returns. Whether you are self-employed, a company director, or a higher-income employee, the changes in taxation, credits, business supports, housing, transport, and social welfare may influence your finances. Here’s a detailed breakdown:
Taxation & Credits
Budget 2026 includes several adjustments to income tax, USC, PRSI, and tax credits that directly affect Form 11 filers:
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Universal Social Charge (USC):
The USC bands have been slightly adjusted. The 2% rate now applies up to €28,700 of income. For higher earners, an additional 3% surcharge applies to income above €100,000, meaning the top USC rate rises to 11%. Form 11 filers should check whether this affects their projected USC liability, especially if their income varies year to year. -
PRSI Contributions:
Employee PRSI rises to 4.35%, while employer PRSI increases to 11.40% (or 9.15% for weekly incomes of €441 or less). Self-employed individuals continue to pay Class S PRSI. Those filing Form 11 should ensure these contributions are accounted for in tax planning. -
Tax Credits:
The Personal Tax Credit remains unchanged at €1,775. Married and dependent relative credits are also stable, but the R&D Tax Credit has increased from 30% to 35% for qualifying expenditures. Form 11 filers running small businesses or start-ups can claim this credit to reduce corporate or self-assessed tax liabilities. -
Capital Gains Tax (CGT) & Capital Acquisitions Tax (CAT):
No major changes have been announced, but Form 11 filers who realized significant gains in 2025 should remain aware of the €1,270 annual CGT exemption and review reliefs like Entrepreneur Relief if relevant.
Business & Employment
Self-employed individuals, company directors, and other Form 11 filers involved in business activities will see the following:
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Minimum Wage Increase:
From January 2026, the national minimum wage rises to €14.15 per hour. While mainly affecting employees, self-employed Form 11 filers with staff need to adjust payroll projections. -
VAT Changes:
The VAT rate for food, catering, and hairdressing services reduces from 13.5% to 9%. Energy VAT remains at 9% until 2030. Businesses should adjust pricing strategies and ensure VAT returns reflect these changes accurately. -
Mortgage Interest Relief & Business Loans:
Mortgage interest tax relief continues for another two years. Self-employed individuals with home offices or business premises should check whether they can claim partial relief. -
Capital Investment:
€19.1 billion is earmarked for infrastructure, housing, and climate-friendly initiatives. Businesses engaged in construction, renewable energy, or tech may benefit indirectly through incentives and procurement opportunities.
Housing & Homes
Housing remains a priority in Budget 2026, impacting both homeowners and landlords who file Form 11 returns:
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Housing Funding:
Over €11 billion has been allocated to housing initiatives, focusing on supply, affordability, and sustainable construction. This could influence property prices and rental yields over the coming years. -
Property Tax Measures:
Corporation tax deductions for apartment construction are now enhanced, providing an incentive for developers. Individuals with property rental income must review how these deductions impact their Form 11 filings. -
Support for First-Time Buyers:
No major new grants were introduced, but existing schemes like the Help-to-Buy Incentive remain available. Self-employed buyers may need to provide additional documentation when applying.
Transport
Transport measures affect both commuting and business travel for Form 11 filers:
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Public Transport Investment:
€4.7 billion has been allocated, including €940 million for Public Service Obligation payments to maintain services. Self-employed individuals using public transport for business purposes can continue to claim travel expenses where eligible. -
Tax-Deductible Travel:
Mileage and travel expenses for business trips remain deductible for Form 11 filers. Any changes to fuel costs or allowances may impact calculations.
Additional Supports
Several social and financial supports are relevant to Form 11 filers, particularly those with families or irregular income:
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Social Welfare:
Core payments increase by €10 per week. Supports for carers, people with disabilities, and one-parent families are also enhanced. Self-employed individuals who occasionally rely on welfare should be aware of eligibility rules. -
Child Support Payments:
Weekly payments rise by €16 for children aged 12+ and €8 for younger children. Form 11 filers with children may benefit indirectly via family income adjustments. -
Working Family Payment & Fuel Allowance:
Income thresholds increase by €60, and recipients become eligible for the Fuel Allowance, backdated to January 2026. Self-employed individuals whose income fluctuates should consider these thresholds when planning their tax return.Helpful Resources
To stay informed and ensure compliance with Budget 2026 measures, consider the following resources: