Michael Cahill
Ceist:360. Deputy Michael Cahill asked the Tánaiste and Minister for Finance if the case of a person (details supplied) will be reviewed; and if he will make a statement on the matter. [45842/26]
Amharc ar fhreagraTuesday, 16 June 2026
Ceisteanna (360)
Freagraí scríofa
Acknowledging the challenging circumstances of bereavement, the Irish income tax code contains favourable provisions relating to the tax treatment of widowed persons.
In the year of bereavement, a widowed person is entitled to the same personal tax credits as a married couple, if they were jointly assessed to tax, and the assessable spouse or nominated civil partner. If they were not the assessable spouse or nominated civil partner, they will receive the increased personal tax credit available to a widowed person or surviving civil partner in the year of death and be assessed on their income from the date of death of their spouse or civil partner until the end of the year.
Following the year of bereavement, widowed persons without dependent children are entitled to the widowed person tax credit of €540 in addition to the standard tax credits for a single person.
Section 463 of the Taxes Consolidation Act (“TCA”) 1997 provides for the widowed parent tax credit. The tax credit is available for widowed parents and surviving civil partners, with a qualifying child or children, following the death of a spouse or a civil partner.
The tax credit, which applies for the five years following the year in which the person is bereaved, is as follows:
• €3,600 in the first year after bereavement,
• €3,150 in the second year after bereavement,
• €2,700 in the third year after bereavement,
• €2,250 in the fourth year after bereavement and
• €1,800 in the fifth year after bereavement.
One widowed parent tax credit may be received, regardless of the number of qualifying children the bereaved person has.
For the purposes of section 463 TCA 1997 a “qualifying child” is a child:
• who is born in the year of assessment, or
• who is under 18 years of age at the beginning of the year of assessment, or
• who, if over 18 at the beginning of the year of assessment:
• is receiving full-time instruction at an educational establishment, or
• is permanently incapacitated by reason of mental or physical infirmity from maintaining himself/herself and had become so incapacitated before the age of 21 or while receiving full-time instruction at an educational establishment.
Guidance on the widowed parent tax credit can be found on Revenue’s Website at the following link: www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/children/widowed-parent-tax-credit/index.aspx
Further guidance on the basis of assessments applicable to married persons and civil partners, and the tax treatment applicable in the year of bereavement can be found in Tax and Duty Manual Part 44-01-01, at the following link: https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-44/44-01-01.pdf
In addition to the above, section 462B TCA 1997 provides for the single person child carer credit (“SPCCC”), which is available in the years following the year of bereavement where all of the conditions of the provision are met. The SPCCC amounts to €1,900 for the 2026 year of assessment and provides for an increase to the standard rate band of €4,000, bringing the total standard rate band available to €48,000 for the 2026 year of assessment.
For the purposes of the SPCCC a “qualifying child” is as outlined above. The qualifying child must be either the individual’s own child or a child who is in the custody of the individual and who is maintained by that individual at his or her own expense for the whole or greater part of the tax year. In addition, the claimant must not have remarried or entered into a new civil partnership or cohabiting relationship in order to qualify for the SPCCC.
Further guidance on the application of the SPCCC can be found in Tax and Duty Manual Part 15-01-41, at the following link: https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-15/15-01-41.pdf
Widowed persons will also benefit from the income tax changes made over successive Budgets by the previous Government. For example, to ease the burden facing average and middle-income earners, the entry point to the higher rate of income tax for all earners has increased substantially by €8,700 or c. 25 per cent over the last four budgets, and the main tax credits have also been increased by €350, or c. 21 per cent, over this period. Furthermore, in line with Government policy of ensuring full-time workers on the minimum wage remain outside the charge to the top rates of USC the ceiling of the 2 per cent USC rate band was increased by €6,898, or 34 per cent, from 2020 to 2025. Budgets 2024 and 2025 also cumulatively reduced the 4.5 per cent rate of USC to 3 per cent.
Social welfare payments and the interaction between such payments are a matter for the Minister for Social Protection, however, it should be noted that social welfare payments are not liable to USC or PRSI.
Finally, 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 the sound management of the public finances.