664. Deputy Cormac Devlin asked the Tánaiste and Minister for Finance the number of taxpayer units aged 65 years and over who availed of the income tax age exemption provided for under section 188 of the Taxes Consolidation Act 1997; the number who availed of associated marginal relief, in each year from 2011 to date, in tabular form; and if he will make a statement on the matter. [60524/26]

665. Deputy Cormac Devlin asked the Tánaiste and Minister for Finance the estimated first year and full year cost to the Exchequer of increasing the income tax age exemption limits from €18,000 to €20,000 for a single person and from €36,000 to €40,000 for a married couple or civil partners jointly assessed; the estimated cost of increases at €500 intervals between the current and those levels, in tabular form; and if he will make a statement on the matter. [60527/26]

667. Deputy Cormac Devlin asked the Tánaiste and Minister for Finance if he will examine the income tax age exemption limits in advance of Budget 2027 (details supplied); and if he will make a statement on the matter. [60534/26]

I propose to take Questions Nos. 664, 665 and 667 together.

As the Deputy will be aware, the current thresholds for the income tax age exemption are €18,000 per annum where an individual is aged 65 years or over, and €36,000 per annum for married couples and civil partners, jointly assessed to tax, where either individual is aged 65 or over. The relevant income thresholds may be increased further if the individual has a qualifying child. Additionally, marginal relief may be available where the individual’s or couple’s income exceeds the relevant exemption limit but is less than twice that amount.

The current tax arrangements for persons aged 65 or older compare favourably with the tax treatment of the generality of taxpayers. The age tax credit (€245/€490 for single and married persons respectively) or the age exemption limits and marginal relief are available to persons aged 65 or over. Reduced rates of USC also apply for persons aged 70 or older where their total income is €60,000 or less per annum. Furthermore, the State Contributory Pension and the State Non-Contributory Pension are not chargeable to USC or Pay Related Social Insurance.

With the substantial increases to tax credits introduced by the previous Government, the effective entry point to income tax has increased for all taxpayers, including those aged 65 or older. For 2026, the effective entry point to income tax for an individual in receipt of the single person credit, employee/earned income credit and the age credit is €21,225 per annum and for a married two earning couple in receipt of the married person credit, two employee/earned income credit and the married age credit is €42,450 per annum.

Therefore, depending on their personal circumstances, it may be more beneficial for persons aged over 65 to be taxed under the normal tax system of credits and bands.

I would encourage all taxpayers to ensure that they are availing of the most beneficial tax treatment.

I am advised by Revenue that based on the information available for analysis it is not possible to provide an estimate of the first and full year cost of increasing the income tax age exemption limits from €18,000 to €20,000 for a single person and from €36,000 to €40,000 for a married couple or civil partners jointly assessed and the estimated cost of increases at €500 intervals between the current and those levels. An exercise in modelling adjustments to the age exemption limits has not been carried out and the associated methodology has not been developed that would enable Revenue to provide the information requested.

I am further informed by Revenue that the number of taxpayer units benefitting from age exemption and marginal relief, including those who also benefitted from the increased exemption allowed for each of the years from 2019-2024 can be found below. This table is from Revenue’s ‘Taxpayers by tax band’ publication which is available on the Revenue website. Figures for years prior to 2019 were compiled on an alternative basis and are not directly comparable.

Further guidance on the application of the age exemption and marginal relief can be found on Revenue’s website and in Tax and Duty Manual Part 07-01-18, on Revenue's website.

The full range of tax credits, reliefs and exemptions are also published on Revenue’s website.