Dáil Éireann Debate, Wednesday - 15 July 2026
165. Deputy Richard Boyd Barrett asked the Tánaiste and Minister for Finance the full-year cost of a single person’s personal tax credit and earned income credit of €2,800, €3,000 and €3,500, respectively, for each tax credit category and for each level of credit for people with disabilities; and if he will make a statement on the matter. [53973/26]
View answerFollowing clarification from the Deputy, the request for the increases to the credits are provided on a full population basis below. In addition, costs for married and widowed personal credits are also provided.
I am advised by Revenue that the estimated tax cost, as set out below, relates to taxpayers benefitting from each tax credit change in isolation and does not account for any interaction effects across different tax credits. Taken together as a combined tax credit package, the tax cost for any particular policy change will differ, as certain policy changes can act to reduce the tax liability to zero for some taxpayers before another individual policy measure is applied.
|
Proposal |
Estimated Full Year Cost €m |
|
Single Person Personal Credit increased from €2,000 to €2,800 |
962 |
|
Single Person Personal Credit increased from €2,000 to €3,000 |
1,186 |
|
Single Person Personal Credit increased from €2,000 to €3,500 |
1,715 |
|
Earned Income Credit increased from €2,000 to €2,800 |
185 |
|
Earned Income Credit increased from €2,000 to €3,000 |
232 |
|
Earned Income Credit increased from €2,000 to €3,500 |
347 |
|
Additional Married and Widowed Personal Credits |
Estimated Full Year Cost €m |
|
Widowed Person or Surviving Civil Partner Personal Credit increased from €2,540 to €3,340 |
63 |
|
Widowed Person or Surviving Civil Partner Personal Credit increased from €2,540 to €3,540 |
77 |
|
Widowed Person or Surviving Civil Partner Personal Credit increased from €2,540 to €4,040 |
110 |
|
Married Person or Civil Partner Personal Credit increased from €4,000 to €5,600 (combined effect) |
1,334 |
|
Married Person or Civil Partner Personal Credit increased from €4,000 to €6,000 (combined effect) |
1,648 |
|
Married Person or Civil Partner Personal Credit increased from €4,000 to €7,000 (combined effect) |
2,397 |
