Joe Neville (Kildare North, Fine Gael)
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774. To ask the Minister for Finance in the case of a person who receives a small private pension as well as a government pension which has in recent years risen, if his Department is considering a specific entry point which would alleviate the tax implication for said person; and if he will make a statement on the matter. [44410/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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I assume that the Deputy is referring to a situation where an increase in pension payments received by an individual brings the pension income into the charge to tax.

Section 19 of the Taxes Consolidation Act 1997 (“TCA 1997”) provides that income from offices or employments, and from annuities, pensions, or stipends payable out of State funds, is within the charge to tax under Schedule E. In addition, section 126 (2) TCA 1997 specifically provides that State Pension (contributory) are deemed to be emoluments to which Chapter 4 of Part 42 applies (PAYE System). Accordingly, the State pension (contributory) and any occupational pensions are subject to tax under Schedule E.

Section 472 TCA 1997 provides for a tax credit known as the “Employee Tax Credit” to an individual who is in receipt of emoluments to which the PAYE system of tax deduction at source applies or is applied. The value of this credit for 2025 is €2,000.

Section 461 TCA provides for the basic personal tax credit, including the ‘married person tax credit’. The value of this credit is €2,000 for a single individual and €4,000 for a jointly assessed married couple.

Consequently, the effective entry point to income tax for an individual in receipt of the basic personal tax credit and employee tax credit is €20,000 per annum. This means that a single individual can potentially earn up to €20,000 before they pay income tax in 2025. Married couples or civil partners can potentially earn up to €40,000 per annum before they pay income tax in 2025, depending on their particular circumstances.

Further information on tax credits is available at the link below:

* Revenue website:

In addition to this, reduced rates of USC also apply for persons aged 70 or older where their total income is €60,000 or less. Furthermore, the State Contributory Pension and the State Non-Contributory Pension are not chargeable to USC or Pay Related Social Insurance (PRSI).

I have no plans at this time to introduce a specific entry point that would apply to such a scenario outlined by the Deputy. However, as is the case with all taxation, the tax treatment of pensions is kept under ongoing review.