Value-Added Tax rate for tourism and services sector is being left unchanged at 9%.
There will be a 50c rise in the excise on a packet of cigarettes which will mean the price of 20 will top €12 for the first time.
And he also announced an increase in tax credit for self-employed people.
€ 1.83 billion has been announced for housing in 2018.
The cost of social protection will be over 20 billion and in the last week of March 2018 all weekly welfare rates will increase by 5 euro per week. A Benefit in Kind scheme for electric vehicles will be brought in.
Cuts to USC are expected in some form, and the point where people start paying a higher rate of tax will probably see a slight increase.
Forty new staff will be hired in the Department of Business, Enterprise and Innovation and enterprise agencies to meet what Mr Donohoe said were "challenges and opportunities arising from Brexit".
The 5% rate of Universal Social Charge will drop from 5% of income to 4.75%.
In Education, €10bn is being spent on services, a move which is anticipated to bring the teacher-pupil ratio down to 26:1.
The Finance Minister will increase spend of €685m in health, bringing funding to €15.3bn for 2018.
Taoiseach Leo Varadkar said there would be "no fireworks" and no "big bonanza" as Budget 2018 was unveiled today.
But Donohoe focussed much of his speech on housing as the government scrambles to boost a chronic under-supply across the country, including a significant increase in a planned levy on vacant sites that owners fail to build on.
It will be kicked off with €1.5bn from the Ireland Strategic Investment Fund, which makes commercial investments with state finances, before annual payments of 500 million euro a year are made from 2019.
Resources have been allocated to allow for the recruitment of an extra 800 gardai and 500 civilians during 2018, the minister announced.
The home carer tax credit is to increase by €100 (£89) this year to €1,200 (£1,073) per year.