Budget 2026 — What It Means for Floristry Businesses in Ireland
Budget 2026 brings several key updates that will affect how floristry businesses in Ireland operate — from wage increases and employment costs to vehicle incentives and energy supports. Here’s a clear summary of what matters most for our industry.
Minimum Wage & USC
The national minimum wage will rise by €0.65 to €14.15 per hour from 1 January 2026.
The 2% Universal Social Charge (USC) band ceiling increases by €1,318 to €28,700, ensuring full-time minimum wage workers remain within the lower USC rate.
What this means for florists:
Businesses with staff near the minimum wage should prepare for higher payroll costs.
Review pricing for labour intensive work such as wedding setups, daily bouquet production, and large installations.
Update payroll systems before January 2026 to reflect these changes.
Energy & VAT
The 9% VAT rate on electricity and gas is extended until 31 December 2030, providing stability for energy costs in shops, studios, and storage spaces.
Impact for florists:
Energy-intensive businesses, particularly those using display fridges or lighting, will benefit from this continued lower VAT rate. However, energy-saving practices remain essential to manage overall costs.
Vehicles, Deliveries & Carbon Tax
Carbon tax will increase to €71 per tonne, applying to petrol and diesel from 8 October 2025, and to all other fuels from 1 May 2026.
The €5,000 VRT relief for electric vehicles (EVs) is extended until 31 December 2026.
The €10,000 Benefit-in-Kind (BIK) relief on company cars continues for 2026, reducing to €5,000 in 2027, €2,500 in 2028, and ending in 2029.
A new BIK category for zero-emission vehicles will apply the lowest BIK rates.
Impact for florists:
Rising carbon tax will increase fuel and delivery costs. Consider reviewing delivery charges and optimising routes to improve efficiency.
For florists using vans or cars for deliveries and consultations, switching to an electric vehicle may offer long-term savings and sustainability benefits while incentives remain.
PRSI & Pension Auto-Enrolment
Employer PRSI contributions will rise by 0.1% from 1 October 2025.
From 1 January 2026, automatic pension enrolment will begin for employees aged 23–60 earning over €20,000 per year, who are not already in a pension scheme.
Impact for florists:
These changes will increase the overall cost of employment and require administrative preparation. Florists should plan for payroll adjustments and ensure systems are ready for automatic pension deductions.
🔬 Innovation & R&D Tax Credit
The R&D tax credit has been increased from 30% to 35%, with plans to expand its scope.
Relevance to floristry:
While primarily aimed at innovation-driven businesses, florists experimenting with sustainable materials, new design techniques, or floral technology solutions (e.g. eco-packaging, digital floristry tools) could explore eligibility for these supports.
🌿 Quick To-Dos for Florists
Plan for payroll increases effective January 2026.
Prepare for PRSI and pension auto-enrolment obligations.
Review fuel and delivery costs ahead of the carbon tax rise.
Continue energy efficiency measures — lower VAT on electricity and gas remains in place until 2030.
Assess electric vehicle options while VRT and BIK reliefs are still available.
Explore innovation supports through R&D tax credit schemes if you’re developing sustainable or digital business solutions.
At the Institute of Flowers, we’ll continue to monitor national policies that impact the floristry sector. Budget 2026 highlights the need for forward planning, financial awareness, and sustainability, ensuring Irish florists remain resilient and future-ready.
