THE GOVERNMENT HAS announced that the rent tax credit is increasing by €150 as part of Budget 2027. 

This change brings the value of the credit to €1,150 for single people and €2,300 for couples from next year. 

Confirming announcements made over the summer, the rent-a-room tax credit is being extended to garden cabin rentals between 32 and 45 square metres. 

The threshold of tax-free income landlords can earn from the rent-a-room scheme has also increased from €14,000 to €16,000.

This change applies retrospectively from 27 July this year, when the new planning rules around garden cabins came in.

Harris defended the increase in the rent-a-room scheme, stating that it has not been increased for a number of years. 

Junior housing minister John Cummins also defended the scheme being expanded to modular homes and garden cabins.  

Junior housing minister John Cummins says expanding the rent-a-room scheme to modular homes in gardens is a good move https://t.co/Ag6kM6xJ1t

— Christina Finn (@christinafinn8) October 6, 2026

The government has also announced increases in the Help to Buy scheme. The maximum refund a first-time buyer can claim is increasing by €5,000 to €35,000. 

Local authorities will be permitted to spend more next year for delivery of social and affordable housing. 

Tánaiste Simon Harris said they will be allowed to spend an additional €200 million, either borrowed or from their own resources.

Harris also announced that landowners will have another opportunity to avail of an exemption to the Residential Zoned Land Tax if they seek to have their land rezoned to reflect economic activity being carried out.