Malcolm Byrne (Wicklow-Wexford, Fianna Fail)
Link to this: Individually | In context

165. To ask the Minister for Finance the cost in budget 2026 had personal income tax band increases been linked to consumer price inflation. [67479/25]

Simon Harris (Wicklow, Fine Gael)
Link to this: Individually | In context

The Deputy may wish to note that a Post-Budget 2026 Ready Reckoner is available on the Revenue Statistics webpage at:

www.revenue.ie/en/corporate/documents/statistics/ready-reckoner.pdf

The Ready Reckoner shows a wide range of detailed information, including the estimated cost or yield to the Exchequer of widening the standard tax rate bands. These figures are based on 2026 estimates from the Revenue tax forecasting model using latest actual data for the year 2023, adjusted as necessary for income, self-employment, and employment trends in the interim.

At the time of Budget 2026, the Department of Finance forecasted Harmonised Index of Consumer Prices (HICP) to increase by 1.9 per cent in 2026. This would result in a €835 increase in the single standard rate band from €44,000 to €44,835 per annum.

I would note that wage growth is generally most relevant to indexation of the personal income tax system and at the time of Budget 2026, the Department of Finance forecasted wage growth (wages per head) of 3.9 per cent in 2026. This would result in a €1,715 increase in the single standard rate band from €44,000 to €45,715 per annum.

Based on Revenue’s latest Ready Reckoner (Post Budget 2026), the estimated cost to the Exchequer of indexing the standard rate tax bands in line with HICP and wage growth is set out in the table below.