Michael Healy-Rae
Question:170. Deputy Michael Healy-Rae asked the Tánaiste and Minister for Finance if he will introduce a flat rate tax of 20% on overtime pay; and if he will make a statement on the matter. [39657/26]
View answerTuesday, 26 May 2026
Questions (170)
Written answers
It is a general principle of taxation that, as far as possible, income from all sources should be subject to taxation.
Ireland has a progressive income tax system which is structured such that the more income you earn, the more tax you pay. As a person’s income increases, they move up through the various rates and bands and, as a result, while the levels of take-home pay increase overall, the amount of tax they pay also increases.
As the Deputy will be aware, the ‘Programme for Government 2025: Securing Ireland’s Future’, contains specific undertakings with regard to personal taxation, it 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 finances we would postpone changes to Income Tax credits or bands, as we did in Budget 2021”. Budget 2026 was 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.
Finally, as the Deputy will appreciate, decisions regarding taxation measures are made in the context of the annual Budget and Finance Bill processes, at the appropriate time, and having regard to the sound management of the public finances.