Pat Buckley (Cork East, Sinn Fein)
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255. To ask the Minister for Finance if he will review the current taxation treatment of widows and widowers, specifically in relation to factors (details supplied); and if he will outline any planned reforms to address the financial discrimination and long-term disadvantage faced by widows and widowers. [35367/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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Acknowledging the challenging circumstances that face those dealing with 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. While, in the years following the year of bereavement, a widowed person with dependent children may be entitled to the single person child carer credit.

The widowed parent tax credit is also available in the five years following the year of bereavement to a widowed person with dependent children. This credit is tapered over the 5 years and amounts to €3,600 in year one, €3,150 in year two, €2,700 in year three, €2,250 in year four, €1,800 in year five and nil thereafter.

In addition, widowed parents who are in receipt of the single person child carer credit will also be entitled to an increased standard rate band of €48,000. This compares favourably with the single person’s tax band which is €44,000 in 2025 and is not time bound.

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.

Further detailed guidance on the tax treatment of bereaved spouses and civil partners can be found on the Revenue Website at:

www.revenue.ie/en/life-events-and-personal-circumstances/death-and-bereavement/widowed-person-or-surviving-civil-partner/how-taxed-after-bereavement.aspx

I do not have plans to review the current tax treatment of widowed persons.

Supports for widowed persons are also provided through the Department of Social Protection. As Minister for Finance, I do not have responsibility for State sick leave supports, this is the responsibility of the Minister for Social Protection and that Department. I am informed that Illness Benefit is the primary short term income support provided by the Department of Social Protection to those who are unable to work due to illness of any type and who are covered by social insurance. That Department also provides a Widow’s/Widower’s/Surviving Civil Partner’s Pension, which is a weekly social welfare payment to those who have lost their spouse or civil partner. Widowed persons who are in receipt of the social welfare contributory or non-contributory widow’s pension are not liable to Universal Social Charge or PRSI on that payment.