The Rent Tax Credit is being increased by €150 for both single claimants and couples in Budget 2027.
Tánaiste and Minister for Finance Simon Harris said the credit currently helps around 400,000 people with their rent each year.
The increase will bring the credit to €1,150 for single claimants and €2,300 for couples.
Harris also announced that the maximum refund available to first-time buyers will increase by €5,000, from €30,000 to €35,000.
The higher income tax threshold will increase to €46,000, while the entry threshold for the 3% USC band will rise by €1,600 to €30,300. The employer PRSI threshold will also increase to €600 per week for 2027.
There are also changes to inheritance tax, with the tax-free threshold for a child or grandchild increasing from €400,000 to €420,000.
The Group B threshold, covering relationships including siblings, nieces and nephews, will rise from €40,000 to €44,000, while the Group C threshold will increase from €20,000 to €22,000.
Fuel excise duty reductions will remain fully in place until 28 February 2027. They will then be gradually restored over four phases, with full restoration due by 30 June 2027.
The reduced NORA levy will continue until the end of December 2026, as will the enhanced Diesel Rebate Scheme.
Carbon tax on kerosene and natural gas will be reduced to €48.50 per tonne of CO2. The rate had been due to rise to €78.50 by May next year, but the lower rate will remain for the lifetime of the Government.
The VRT relief scheme for electric vehicles will be extended until the end of 2028, while VRT rates will increase by 1% on more polluting cars in bands 3 to 20.
The Cycle to Work scheme will be reviewed, along with the TaxSaver scheme for commuters.
The tax exemption under the Childcare Services Relief scheme is also increasing by €5,000 to €20,000, with Harris saying the change will give childminders greater flexibility.
An additional €1 billion will also be invested in the Future Ireland Fund, while the Government is forecasting a €6.7 billion surplus next year.
