The increase is due to tax credits and the higher-rate threshold remaining unchanged in last year’s budget

Finance Minister Simon Harris said he was committed to making 'progressive' changes to personal income tax 'if the economy remains strong'. Photo: Collins

Finance Minister Simon Harris said he was committed to making ‘progressive’ changes to personal income tax ‘if the economy remains strong’. Photo: Collins

Almost 100,000 households will be paying more income tax this year, following the Government’s decision in Budget 2026 not to increase tax credits or bands.

According to calculations by Revenue, 23,000 taxpayer units – individuals or couples – who did not have a tax liability last year will have one in 2026.