Dáil Éireann Debate, Tuesday - 7 July 2026
263. Deputy Richard Boyd Barrett asked the Tánaiste and Minister for Finance the estimated yearly cost of double indexation of income tax credits in terms of tax revenues foregone; and if he will make a statement on the matter. [51309/26]
View answer264. Deputy Richard Boyd Barrett asked the Tánaiste and Minister for Finance the estimated total yearly impact on tax revenues from double indexation of income tax bands; and if he will make a statement on the matter. [51310/26]
View answerI propose to take Questions Nos. 263 and 264 together.
While indexation means increasing tax credits, allowances and thresholds to reflect wage growth or inflation so that taxpayers do not end up paying more tax purely due to inflation or rising wages, double indexation is a less well-known concept. As such, the estimated cost of double indexing the tax credits and standard rate bands depends on the economic driver that indexation is linked to, the relevant year(s) for which double indexation is linked to and in addition, what is specifically meant by double indexation.
The 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 increasing the standard rate tax bands and main tax credits. These figures 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.
