Dáil Éireann Debate, Tuesday - 9 December 2025
549. Deputy Pa Daly asked the Minister for Social Protection the estimated revenue that will be raised by taxing carers’ payments; how this compares to the estimated savings made by the State as a result of unpaid care provided in the home; and if he will make a statement on the matter. [69546/25]
View answerCarer's Allowance and Carer's Benefit are and have always been subject to Income Tax but are exempt from USC and Pay Related Social Insurance. Recipients are responsibility to declare this income to Revenue in a tax return. A high proportion of carers are already paying tax. either as individual or as part of a couple. From 1 January 2026, DSP will provide Revenue with the information detailing the amount of carer’s income they received. This means that any tax due on carers income will be deducted throughout the year via a reduction in tax credits and rate bands in the same manner as other taxable DSP payments. This will minimise the risk of a recipient owing tax on carer’s income at the end of 2026,
It’s not possible for my Department to estimate what additional tax if any will result from this transfer as each customers taxation is individual to them. But the data transfer will help carers to keep their tax in order as they will be paying the correct tax due on their income throughout the year. If an individual stops receiving a carer's payments during the year, DSP will notify Revenue, and an amended Tax Credit Certificate will issue to confirm the recipients’ records have been updated accordingly.
My department in not in a position to estimate savings made by the State as a result of unpaid care provided in the home. My colleague the Minister for Health or his department may have some information on this .
