Dáil Éireann Debate, Tuesday - 10 February 2026
182. Deputy Joe Neville asked the Tánaiste and Minister for Finance the number of earners in Ireland now paying the higher rate of income tax; the way that figure compared with 2020; and if he will make a statement on the matter. [10057/26]
View answerI am advised by Revenue that it is estimated that approximately 30 per cent of taxpayer units, or c. 1.06 million, will be liable to the higher rate of income tax in 2026. This compares to just under 32 per cent, or c. 0.9 million, in 2020. It should be noted that the number of taxpayers paying tax at the higher rate in 2026 is an estimate, based on actual returns for 2023, and adjusting for income and employment trends in the interim. 2023 is the latest year for which complete taxpayer data is available for analysis. The filing deadline for self-assessed income tax returns in relation to 2024 was November 2025, this data is currently being processed and will be available for analysis in early Q3 of 2026.
Over the lifetime of the previous Government the standard rate cut-off point was increased substantially from €35,300 to €44,000 representing an increase of €8,700 or 24.6 per cent. When comparing the 2020 and 2026 figures it should be noted that the income tax base has expanded significantly since 2020. There were approximately 2.86 million taxpayer units in the tax base in 2020, and it is estimated that there will be approximately 3.49 million taxpayer units in the tax base in 2026. This represents a 22 per cent increase or approximately 0.63 million additional taxpayer units.
When examining the change in the number of taxpayers paying the higher rate of income tax in 2020 and 2026 the change as a percentage of the tax base as the metric is a more useful comparison.
More information on the rates of tax paid by taxpayers can be found on the Revenue website at https://www.revenue.ie/en/corporate/information-about-revenue/statistics/personal-taxes/tax-band/index.aspx.
