Government Prioritizes Raising Higher Tax Bracket Threshold Above €44,000
The Irish Government plans to raise the income threshold for the 40% higher tax bracket, a priority for Tánaiste Simon Harris. The current threshold is €44,000, up from €33,000 in 2015. This aims to allow workers to keep more of their earnings from overtime or promotions.
The Irish Government is considering an increase in the income threshold at which individuals enter the 40% higher tax bracket. This initiative follows the absence of a personal income package in the previous year's budget, with Tánaiste Simon Harris now stating it is a priority.
Harris highlighted the historical progression of the threshold, noting, «The threshold was about €33,000 back in 2015; it’s now €44,000. I would like to see progress on that in the budgets ahead.» He emphasized that employees who work overtime, receive promotions, or experience wage increases should retain a larger portion of their earnings. The specific amount by which the threshold will be raised in the forthcoming budget remains undetermined.
Public opinion is being sought on whether workers earning over €44,000 should pay less tax, with one perspective suggesting a modest increase in the threshold.