Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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303.To ask the Minister for Finance the estimated cost of index linking tax credits. [33265/24]

Jack Chambers (Dublin West, Fianna Fail)
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As the Deputy will be aware, the Programme for Government, “Our Shared Future”, states that “From Budget 2022 onwards, in the event that incomes are again rising as the economy recovers, credits and bands will be index linked to earnings. This will be done to prevent an increase in the real burden of income tax, to prevent more low income workers being taken into the tax net because of no changes to the tax system and to ensure there is no increase in the number of people having to pay higher income tax and USC rates.”

In relation to the Deputy’s request, I would point out that, page 9 of Revenue’s Post-Budget 2024 Ready Reckoner (dated October 2023) includes the estimated cost of indexation at 1 percent, across the main tax credits and bands, as well as USC band rates and exemption limits. This information is available at the following link –

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An update of the Ready Reckoner is due to issue in the coming weeks.

Based on Revenue’s latest Ready Reckoner (Post-Budget 2024), it is estimated that the cost of indexing only the income tax credits by 1 percentage point would be in the region of €105 million in 2025 and €120 million in a full year.