Dáil Éireann Debate, Thursday - 26 March 2026
204. Deputy Emer Currie asked the Tánaiste and Minister for Finance the estimated amount of tax bands (the standard rate cut off point) would have been increased for a single person and married couple had they been indexed to inflation earnings in the Budget 2026; the cost of this to the Exchequer; and if he will make a statement on the matter. [23122/26]
View answerThe Deputy may wish to note that a Post-Budget 2026 Ready Reckoner is available on the Revenue Statistics webpage at: www.revenue.ie/en/corporate/documents/statistics/ready-reckoner.pdf.
The Ready Reckoner shows a wide range of detailed information, including the estimated cost or yield to the Exchequer of widening the standard tax rate bands. The figures in the Post-Budget 2026 Ready Reckoner are the most up to date available and are based on 2026 estimates from the Revenue tax forecasting model using latest actual data for the year 2023, adjusted as necessary for income, self-employment, and employment trends in the interim.
At the time of Budget 2026, the Department of Finance forecasted wage growth (wages per head) to increase by 3.9 per cent in 2026. This would result in an increase of approximately €1,715 in the single standard rate band from €44,000 to €45,715 per annum.
Based on Revenue’s latest Ready Reckoner (Post Budget 2026), the estimated cost to the Exchequer of indexing the standard rate tax bands in line with wage growth is set out in the table below.
|
Indexation of the Standard Rate Income Tax Bands |
First Year (€m) |
Full Year (€m) |
|
3.9 per cent |
395 |
450 |
The table below set out the current value of the various income tax standard rate bands and the proposed value if the bands had been indexed in line with wage growth for 2026.
|
Personal Circumstances |
Current Standard Rate Bands (€) |
Increased by wage growth 3.9 per cent (€) |
|
Single |
44,000 |
45,715 |
|
Single person qualifying for the Single Person Child Care Credit |
48,000 |
49,715 |
|
Married/civil partner – one earner |
53,000 |
54,715 |
|
Married/civil partner – two earners |
88,000* |
91,430** |
*where each spouse earns a minimum of €35,000 – the maximum rate band transferability.
** where each spouse earns a minimum of €36,715 – the maximum rate band transferability.
