Grace Boland (Dublin Fingal West, Fine Gael)
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689. To ask the Minister for Finance if he will consider in advance of Budget 2026 raising the maximum tax relief credit on health insurance premiums, presently capped at €200, in view of the substantial increases in health insurance costs over the past two years; and if he will make a statement on the matter. [42726/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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Section 470 of the Taxes Consolidation Act ("TCA 1997") provides for tax relief in respect of payments made to authorised insurers under relevant contracts in respect of medical insurance and dental insurance.

Income tax relief is granted up to the standard rate of tax (currently 20%), subject to certain limitations outlined below, on the amount of the premium, that covers benefits which are the reimbursement or discharge of health expenses within the meaning of section 469 TCA 1997 (health expenses tax relief).

The amount qualifying for tax relief is limited;

• in the case of an adult, to the lesser of the eligible premium paid or €1,000 per annum, and,
• in the case of a child, to the lesser of the eligible premium paid or €500 per annum.

The current ceilings ensure a level of continuing support via the tax system for those who purchase health insurance policies, while reducing Exchequer exposure to more expensive policies. The relief is generally provided at source, which ensures that individuals on lower incomes can receive the full benefit of the available relief.

I would note that the health insurance tax relief is a longstanding and broadly utilised relief. In 2022, the cost of the health insurance relief was €405.2 million, with 1,383,260 claims.

Finally, and 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. It is a longstanding practice of the Minister for Finance not to comment in advance of the Budget on any tax matters which might be the subject of Budget decisions.