Budget 2026: What It Means For Your Money

10 November 2025

The annual Budget announcement is one of the most important financial moments of the year. But what does it actually mean for your household? At An Post Money, we’re here to help you cut through the complexity and understand how Budget 2026 could impact your income, spending, and savings.

We’ve teamed up with financial advisor Paul Merriman, CEO of Ask Paul, to break down the key changes and what they mean for you. Whether you’re working, retired, renting, or investing, here’s what you need to know.

Key Highlights from Budget 2026

Budget 2026 has been described as a “responsible” and steady plan, focused on long-term financial stability rather than short-term giveaways. Here are the main changes that could affect your household:

Minimum wage will rise to €14.15 per hour from January 2026.
Social welfare and pension payments will increase by €10 per week.
The USC 2% band will be extended to €28,700, helping protect low- and middle-income earners from tax creep.
The Rent Tax Credit is extended until 2028, and Mortgage Interest Relief will continue for another two years.
VAT for the hospitality and hairdressing sectors will be reduced to 9% from mid-2026.
The Exit Tax on investments will drop from 41% to 38%, supporting savers and investors.
These changes are designed to support household budgets and provide more predictability in the face of rising living costs.

What Does This Mean for Your Household?

Most households can expect a modest increase in take-home pay, especially those earning minimum wage. Social welfare recipients and pensioners will benefit from the weekly €10 boost, while families may see additional support through schemes like the Working Family Payment and Fuel Allowance.

Renters will gain certainty with the extended Rent Tax Credit, and homeowners will continue to benefit from Mortgage Interest Relief. Investors will also see improved returns thanks to the reduced Exit Tax.

How to Make the Most of Budget 2026

Paul Merriman advises households to take a proactive approach: “Budget 2026 won’t transform household finances overnight, but it does bring stability and predictability. The key now is to plan ahead, use your available credits, and make sure you’re claiming every support you’re entitled to.”

Start by reviewing your income, expenses, and any entitlements. Check if you qualify for new or extended supports like the Rent Tax Credit or childcare schemes. If you’re employed, ensure your USC thresholds are updated in January. And if you have savings or investments, consider how the lower Exit Tax might affect your strategy.

Tools to Help You Stay on Track

An Post Money offers a range of tools to help you manage your finances with confidence. Our Money Manager feature helps you track spending, spot savings opportunities, and adjust to changes from Budget 2026 with ease. It’s all about giving you control, clarity, and confidence in your day-to-day money management.

Final Thoughts

While Budget 2026 may not bring dramatic changes, it rewards consistency and smart planning. With the right tools and advice, you can make the most of these updates and build a more secure financial future.

Terms & Conditions apply. An Post is authorised by the Minister for Finance to provide payment services and is regulated by the Central Bank of Ireland in the provision of such services. Money Manager is provided by An Post in conjunction with Tink. Tink is a payment Institution authorised by the Swedish Financial Supervisory Authority to provide account information services.