Dáil Éireann Debate, Thursday - 26 February 2026
24. Deputy Michael Cahill asked the Minister for Social Protection his plans to engage with the Minister for Finance in relation to carer’s allowance and carer’s benefit being made tax exempt in line with other social welfare payments, including jobseeker’s allowance and disability allowance; and if he will make a statement on the matter. [15138/26]
Amharc ar fhreagraCarer's Allowance and Carer’s Benefit are and have always been taxable sources of income. However, it is important to note that if a person is solely reliant on Carer’s Allowance or Carer’s Benefit they will not usually meet the income tax threshold and therefore will not be liable to pay tax unless they also have income from other source, e.g. rental, investment, employment income.
Last year, it was agreed between my Department and the Revenue Commissioners that, from 1 January 2026, information on Carer’s Allowance and Carer’s Benefit payments would be included in the weekly Taxable Payments Report shared directly with Revenue.
These arrangements were developed to improve customer service, reduce the administrative burden on carers, and ensure that individuals’ tax records remain up to date.
The operation of the taxation system is a matter for the Revenue Commissioners and the tax treatment of income, including social welfare payments, is a matter for the Minister for Finance.
I trust this clarifies the position for the Deputy.
