Dáil Éireann Debate, Tuesday - 24 February 2026
406. Deputy John Connolly asked the Tánaiste and Minister for Finance the rationale for treating carer’s allowance as taxable income and if he will consider reviewing the taxation status; and if he will make a statement on the matter. [15647/26]
Amharc ar fhreagraCarers play a fundamental supporting role in society, and the Government are committed to supporting individuals and families with caring responsibilities. This is acknowledged by the broad range of commitments in the Programme for Government to improving supports for carers.
It is a general principle of taxation that, in the absence of a specific exemption, income from all sources, in general, are subject to tax.
Carer's Allowance and Carer's Benefit are subject to Income Tax but are exempt from USC and Pay Related Social Insurance. There has been no change in this position.
It should be noted that not all carers who are in receipt of Carer’s income will have a tax liability, particularly if their income level is below the taxation threshold, or they have sufficient tax credits to reduce their liability to nil. A person’s tax liability will depend on their individual personal circumstances, income levels and personal credits available to them and their family.
As the Deputy will appreciate decisions regarding taxation measures are made in the context of the annual Budget and Finance Bill processes, at the appropriate time, and having regard to available resources and the sound management of the public finances.
