Ireland

Individual - Significant developments

Last reviewed - 06 March 2026

Irish Finance Act 2025

Following the most recent Irish Finance Act (effective from 1 January 2026):

  • The Special Assignee Relief Programme (SARP) has been renewed for a further five years, with an increase to the minimum income threshold to 125,000 euros (EUR) from 2026. Simplifications in administration have also been provided.
  • Foreign earnings deduction (FED) relief has been increased to EUR 50,000 from 2026, extended for a further five years, and scope has widened to include the Philippines and Turkey.
  • Company car benefit-in-kind: The current EUR 10,000 company vehicle original market value deduction has been extended by one year into 2026. It will then reduce to EUR 5,000 in 2027 and EUR 2,500 in 2028, being abolished from 2029. A new vehicle category for zero emission cars will apply with benefit-in-kind rates of between 6% - 15% from 2026. The threshold for entering the highest mileage band (where a lower benefit-in-kind rate applies) has been permanently reduced from 52,001 km to 48,001 km from 1 January 2026.
  • There is an increase to minimum wage, adding EUR 0.65 per hour to bring it to EUR 14.15 per hour.
  • Changes in the Universal Social Charge (USC) bands, increasing the ceiling of the 2% rate by EUR 1,318 to EUR 28,700. The USC concession for individuals with a full medical card and income of less than EUR 60,000 has been extended to 2027.
  • The Rent Tax Credit has been extended for three years to the end of 2028. The credit remains unchanged at up to EUR 1,000 per person.
  • Mortgage interest relief was extended for a further two years (2025 and 2026), with a reduced value applying in the final year (2026).
  • Auto‑enrolment to a mandatory pension regime is introduced with effect from 1 January 2026 for eligible employees. Individuals who are members of an occupational pension plan or Personal Retirement Saving Account (PRSA) may be exempt from this requirement if the relevant arrangement meets an equivalence test.