Catherine Connolly (Galway West, Independent)
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417. To ask the Minister for Finance the adjustment made for indexation of income tax bands and income tax rates when calculating the budgetary stance for Budget 2026. [30697/25]

Catherine Connolly (Galway West, Independent)
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418. To ask the Minister for Finance the amount of additional savings that could be made by not indexing income tax bands and income tax rates. [30698/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 417 and 418 together.

The Programme for Government, “Securing Ireland’s Future”, states that Government will “[i]mplement progressive changes in taxation if the economy remains strong, including indexing credits and bands to prevent an increase in the real burden of income tax.”

In the Annual Progress Report published at the beginning of May, Government estimated that, on current projections, the non-indexation of the income tax system was expected to raise in the region of €1.1 billion next year. This is, of course, a point-in-time estimate and subject to revision based on the latest available data.

The Summer Economic Statement (SES), which is due to be published in the coming period, will set out the budgetary framework in which Budget 2026 will be delivered.

Furthermore, the Revenue Commissioners publish the Ready Reckoner – the latest version, which was published post-Budget 2025, provides the estimated cost of indexation at 1 percentage point, across the main tax credits and standard rate income tax bands, as well as USC rate bands and exemption limits.

This information can be found at the following link: www.revenue.ie/en/corporate/information-about-revenue/statistics/ready-reckoner/index.aspx.