Dáil Éireann Debate, Thursday - 18 December 2025
201. Deputy Mairéad Farrell asked the Tánaiste and Minister for Finance the number of workers his Department has forecast to move up an income tax band in 2026, as a result of the freezing of income tax bands within Budget 2026; and if he will make a statement on the matter. [73184/25]
View answer363. Deputy Mairéad Farrell asked the Tánaiste and Minister for Finance the number of people the Government expects to move up an income tax band in 2026, as a result of the freezing of income tax bands within b##udget 2026; and if he will make a statement on the matter. [69527/25]
View answerI propose to take Questions Nos. 201 and 363 together.
I am advised by Revenue that it is estimated that just under 36.5 per cent of taxpayer units (approximately 1.28 million) will remain outside the income tax net in 2026 (7.4 per cent exempt and 29.1 per cent whose income tax liability will be fully covered by their tax credits). This equates to approximately 23,000 taxpayer units or 1.0 per cent who in 2026 have a net income tax liability where they did not have a liability in 2025.
I am further advised by Revenue, that it is estimated that an additional 76,400 taxpayer units will be subject to the higher rate of income tax in 2026 compared to 2025. As a result, it is expected that approximately 30.3 per cent of taxpayer units will pay the higher rate of income tax in 2026 compared to 28.3 per cent in 2025.
As the Deputy will be aware, Budgets are about choices. This Budget was designed to boost our economic resilience and to support workers and growth in their income by investing in jobs and in their future. This is the first of five Budgets to be delivered by this Government, and the Government remains committed and will stand by the Programme for Government commitment to make progressive changes to personal income tax, if the economy remains strong.
