Finance bill introduces wide-ranging tax reforms
The Department of Finance has unveiled the Finance (No. 2) Bill 2026, detailing comprehensive taxation updates and administrative changes. The legislation includes income tax adjustments, new property taxes and incentives aimed at supporting individuals, businesses, and farms across Ireland.
The Department of Finance published the Finance (No. 2) Bill 2026 following Government approval earlier this week. Spanning 79 sections and 242 pages, the Bill enacts the tax changes announced by Tánaiste and Minister for Finance Simon Harris TD on Budget Day and introduces vital technical amendments to the tax code.
Key provisions include a significant personal income tax package, featuring an increase in the standard rate cut-off point and tax credits, alongside new measures such as the Derelict Property Tax and the Investment Account, designed to encourage urban regeneration and simplify investment taxation respectively. The Bill also enhances support for childcare, property owners, farmers and enterprises through various reliefs and tax credit increases.
Other notable amendments comprise reductions in Capital Gains Tax rates, deferrals and reductions in carbon and mineral oil taxes, extensions of electric vehicle reliefs, and adjustments to Corporation Tax preliminary payments and enhanced reporting requirements. The Bill further addresses OECD Pillar Two compliance, updates the Research and Development tax credit, and introduces a new betting duty. It aims to balance fiscal responsibility with incentives to stimulate economic activity and sustainability.
The full text and explanatory memorandum are available on the Department of Finance website. The Bill's second stage in the Dáil is expected to begin next week, with the Government aiming to complete all legislative stages by the end of December 2026.