Carer's Allowance and Carer's Benefit are taxable sources of income.
Earlier this year, it was agreed between my Department and the Revenue Commissioners that, from 01 January 2026, information on these payments will be included in the Taxable Payments Report shared directly with Revenue. This equitable solution removes the onus on carers to contact Revenue themselves to inform them that they are in receipt of a Carer's Allowance or Carer's Benefit payment.
If Carer's Allowance or Carer's Benefit is a person's only source of income, they are unlikely to have to pay tax. This is because their tax liability may not exceed their tax credits.