Dáil Éireann Debate, Tuesday - 16 June 2026
350. Deputy Eoin Hayes asked the Tánaiste and Minister for Finance the number of qualifying PAYE and self-employed individuals who did not fully utilise their personal tax credit, and employee tax credit/earned income credit (as applicable) in the most recent available tax year; the total value of these unused credits; the average amount of unused credit per individual; and if he will make a statement on the matter. [45059/26]
View answerIncome tax credits reduce the amount of income tax payable. Generally, all taxpayers have a personal tax credit (single/married credit) and an employee tax credit (PAYE workers) or earned income credit (self-employed persons). A person’s tax liability will depend on their individual personal circumstances, income levels and personal credits available to them and their family. Not all taxpayer units will fully utilise their tax credits, for example, if their income level is below the taxation threshold. The entry point to income tax was €17,750 for a single person in 2023. It is likely that taxpayer units who did not fully utilise these main tax credits had taxable income of less than the entry point to income tax as relevant to their personal circumstances.
I am advised by Revenue that the number of taxpayer units who claimed the personal tax credit but did not fully utilise it, that is they either utilised part of it or none of it, was approximately 646,400 in 2023. The value of this unused portion of the personal credit was approximately €1.0 billion, and therefore the average amount per this cohort of taxpayer unit was approximately €1,600.
In relation to the employee tax credit and the earned income credit, these two credits must be addressed together, since there is an interaction between them. Taxpayers can claim both credits if they have both a Case I/II income source and a PAYE income source, but the amount of the credits granted cannot exceed the value of one credit. I am advised by Revenue that the number of taxpayer units who claimed the employee tax credit and/or the earned income credit but did not fully utilise them, that is they either utilised part of them or none of them, was approximately 1,092,500 in 2023. The value of this unused portion of these credits was approximately €1.3 billion, and therefore the average amount per this cohort of taxpayer unit was approximately €1,200.
A taxpayer unit refers to an individual except in the case of jointly assessed couples, in which case the couple are combined and referred to as one taxpayer unit. The information cannot be provided at the individual level as the information on the utilisation is only available to provide at the taxpayer unit level.
The data provided relates to 2023, the latest year currently available for analysis. Data for 2024 will be available in Q3 of this year. As the filing deadline for self-assessed income tax returns has not yet passed, data in relation to 2025 will not be available until mid-2027.
The numbers provided relate to all taxpayer unit types including those in receipt of occupational pensions and income from the Department of Social Protection.
