Dáil Éireann Debate, Tuesday - 24 February 2026
373. Deputy Eamon Scanlon asked the Tánaiste and Minister for Finance if he will consider increasing the 20% income tax threshold to €48,000 in recognition of the pressures facing middle-income earners; and if he will make a statement on the matter. [14355/26]
View answerThe Programme for Government (PfG) commits to “implementing progressive changes in taxation if the economy remains strong, including indexing credits and bands to prevent an increase in the real burden of Income Tax. While in the event of an economic downturn and unexpected deterioration in the public finance we would postpone changes to Income Tax credits or bands, as we did in Budget 2021”.
Over recent years, the previous Government provided substantial income tax packages to support workers. The income tax measures implement over the period of the last Government are expected to be in line with wage growth (i.e. wages per head of 21.6 per cent). For example, the single standard rate band, which was increased by €8,700 or 24.6 per cent from €35,300 in 2020 to €44,000, with commensurate increases for jointly assessed married couples / civil partnerships and individuals who can avail of the increased band for single parents.
With the substantial personal Income Tax packages over the lifetime of the previous Government, significant progress has been made on increasing the entry point to the higher rate of income tax.
For Budget 2026 the circumstances were different and this Budget was designed to boost our economic resilience and protect jobs in a deeply uncertain international economic environment.
However, this was the first of five Budgets to be delivered by this Government, and the Government remains committed to, and will stand by, the Programme for Government commitment to make progressive changes to income tax, if the economy remains strong.
