In a 22 September 2026 update, the Minister for Finance confirmed additional cost-of-living measures to be included in the Finance Bill 2026, supplementing the core Budget 2027 announcements. The renters’ tax credit will rise from €500 to €1,000 per annum for single renters and from €1,000 to €2,000 for jointly assessed couples, effective for the 2026 tax year (claimable in 2027). A temporary zero-VAT rate on home heating oil (marked gas oil) will apply from 1 October 2026 to 30 April 2027, estimated to save the average household €150 over the winter. The package also includes a €200 lump sum for fuel allowance recipients paid in November 2026, and an increase in the earned income credit for self-employed workers from €1,875 to €2,000. The total cost is put at €450 million, funded from the underspend in the 2026 social protection vote.
Key Takeaways
- Renters’ Credit Doubling: The credit is non-refundable but can be carried forward. It targets the 30% of households in private rental accommodation, where average monthly rent exceeds €1,800. The Revenue Commissioners estimate 400,000 claimants will benefit, with a net Exchequer cost of €300 million after clawback from higher-rate taxpayers.
- Heating Oil VAT Zero-Rating: The measure applies only to marked gas oil (green diesel) used for home heating, not to road diesel or commercial heating. It requires a Ministerial Order under the VAT Consolidation Act 2010 and EU State Aid clearance, which has been granted under the Temporary Crisis Framework.
- Self-Employed Parity: Raising the earned income credit narrows the gap with the PAYE employee credit (€1,875 vs €2,000). The move addresses long-standing criticism of unequal tax treatment for the self-employed, who number 350,000. The change is permanent and will be indexed in future budgets per the Programme for Government commitment.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement