Dáil Éireann Debate, Thursday - 25 June 2026
49. Deputy Richard Boyd Barrett asked the Tánaiste and Minister for Finance if he is considering an introduction of a wealth tax for Irish millionaires and billionaires to broaden the tax base and fund critical infrastructure projects and services; and if he will make a statement on the matter. [48319/26]
View answerAs the Deputy will be aware, wealth is already taxed in a number of ways in Ireland. These include Capital Gains Tax, Capital Acquisitions Tax and Local Property Tax. Stamp Duty also acts as a tax on wealth, including that charged on the acquisition of the shares, stocks and marketable securities of Irish registered companies, and on the acquisition of property both residential and non-residential.
The revenue raised from a wealth tax, regardless of the form it takes, may not be additional to that raised by the existing forms of wealth taxation, as the revenues from those taxes could be impacted by the introduction of a wealth tax.
In looking at the question of wealth taxes, the Commission on Taxation & Welfare's 2022 report identified challenges that would impede the implementation of a wealth tax. Their conclusion was that a new tax on net wealth should not be introduced without first attempting to substantially amend Ireland’s existing taxes on capital and wealth. The Commission argued that, as an alternative to introducing a new tax on wealth, CGT and CAT could be re-examined. These are existing taxes on wealth that have well-established, but distinct, bases and are well-understood in their operation.
A 2024 report by the Parliamentary Budget Office titled ‘An Overview of Taxes on Wealth in Ireland’ noted, amongst other things, that a specific wealth tax risks an increased concentration of overall tax receipts on a relatively small proportion of taxpayers. It proposed base-broadening measures to increase the number of taxpayers and to diversify revenue sources.
It is important to note that Ireland has one of the most progressive taxation systems and social transfers of any EU or OECD country, which contributes to the redistribution of income and to the reduction of income inequality.
In 2016, my Department worked with the ESRI to conduct a research project into the distribution of wealth in Ireland and the potential implications of a wealth tax. Recognising the passage of time that has elapsed since this research project was undertaken, my Department and the ESRI are currently conducting analysis under its Joint Research Programme of the potential impact of a tax on household wealth in Ireland. This will include scenario and distributional analysis under a range of wealth tax scenarios.
It is expected that a draft paper will be completed before the end of the year and so I do not plan on introducing a wealth tax in Budget 2027.
