It is unclear what form this tax will take, but a charge on fizzy drinks is expected.
€ 1.83 billion has been announced for housing in 2018.
Next year, 3,800 new social homes will be built and there will also be an increase to the housing assistance scheme by €149 million (£133 million).
The Home Building Finance Ireland scheme will begin with €750m.
There will be an increase of € 685m in Health spending in 2018, bringing the total to €15.3bn for 2018 - a 5% increase.
-Plans to recruit additional 1,300 teaching jobs.
Welfare rates are to increase by 5 euro and the USC is being cut.
He said that increased spending in health and education will allow for more doctors, nurses and teachers.
The tax will more than double from 3% to 7% if the land is held untouched for a second or subsequent years.
Also, a sugar tax is to be introduced on drinks at a rate of 30c per litre on drinks with more than eight grams of sugar per 100 millilitres and a reduced rate of 20c per litre on drinks with between five and eight grams of sugar per 100 millilitres.
Varadkar knows that with the agreement with their main rivals to back the minority administration set to expire in just over a year's time, the small boosts will likely be the last to filter through to voters' pay packets before the next election.
You can check the changes to your income bracket and family situation here.
Ireland's finance minister sought to raise over 800 million euros in extra revenue in a budget on Tuesday to give taxpayers a "modest" break and help tackle a housing crisis.
The threshold at which people enter the higher, 40% rate of income tax will rise from its current level of €33,800 (£30,242) by €750 (£671) for a single person to €34,550 (£30,914).
147,000 self-employed people are to see their Earned Income Credit raised by €200 to €1,150 in 2018.
In a bid to slash skin cancer rates in Ireland - among the highest in the world - Value-Added Tax on sunbed services is to soar from 13.5% to 23%.