Dáil Éireann Debate, Tuesday - 9 December 2025
532. Deputy Louise O'Reilly asked the Minister for Social Protection the way in which carer's allowance and disability allowance will be taxed from 1 January 2026 onwards; the differences which will be between tax procedures in 2025 and 2026; the impact this will have on welfare recipients; and if he will make a statement on the matter. [69130/25]
Amharc ar fhreagraTaxation is a matter for the Revenue Commissioners. Carer’s Allowance and Carer's Benefit are and have been a taxable source of income.
Earlier this year, it was agreed between my Department and the Revenue Commissioners that, from 01 January 2026, information on Carer's Allowance/Benefit payments will be included in the Taxable Payments Report shared directly with Revenue. This equitable solution removes the onus that was previously on carers to contact Revenue themselves to inform them that they are in receipt of a Carer's Allowance/Benefit payment. The carer’s representative groups were informed of this in April and were satisfied that this equitable solution removes the onus that was previously on carers to contact Revenue themselves to inform them that they are in receipt of a Carer's Allowance payment, thereby making the process simpler for carers in the future.
I can confirm that no historical or past-year payment information is being supplied to Revenue. The provision of real-time information to Revenue from 1 January is a forward looking arrangement and will make the process simpler for carers in the future.
If Carer's Allowance/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.
Disability Allowance is not a taxable source of income.
I hope that this clarifies the matter for the Deputy.
