Minister for Finance Paschal Donohoe has confirmed that tax bands will not be increased in next Tuesday's Budget.
Speaking at a press conference this evening, Minister Donohoe said to do so would undermine the public finances.
"There will not be changes to personal taxation within the Budget because I am going to be prioritising decisions with regards to jobs and investment in the future of our economy," he said.
Minister Donohoe confirmed that the tax package in Budget 2026 will remain at €1.5 billion.
"That is the biggest tax package that I believe is safe to implement in our economy," he said.
"If we were to go beyond €1.5 billion, that runs the risk of over time narrowing our tax base and undermining safety in our public finances, and the ability to pay for our public services in the future," he added.
As the Government prepares for next week's Budget, Minister Donohoe said they are focused on targeted measures they believe can make a difference in supporting households with the rising cost of living.
With regards to taxation measures, he said their focus is on jobs and investment.
"The most important thing we can do in preparing a budget is to put in place the measures that will help keep jobs in our country, keep what we have and get more jobs in the future," Minister Donohoe said.
He was speaking following the publication of the latest Exchequer returns, and ahead of the publication of the Government's White Paper later this evening.
The White Paper outlines how the public finances would look if Budget 2026 didn't happen.
"This sets the scene for the final decisions that Minister Chambers and I are working on as we prepare for Budget 2026," Minister Donohoe said.
The paper forecasts strong economic growth in 2025, which is set to continue into 2026.
Total tax revenue for next year is now projected to be €106 billion on a pre-Budget basis.
The White Paper indicates there will be an Exchequer surplus of around one billion euro and a general Government surplus of €10.3 billion in 2025 - before any Budget measures are taken.
For 2026, it indicates an Exchequer surplus of €1.5 billion and a general Government surplus of €8.7 billion for next year.
It predicts an increase in corporate tax this year and next, reaching €34 billion for next year.
Earlier today, the latest Exchequer returns revealed the State has collected €71.3bn in taxes so far this year, a rise of 4.6% on the same period in 2024, leaving the Government in a strong position ahead of the Budget.
When back taxes from iPhone maker Apple are included the increase in the nine months to the end of September was 7% up on last year.
Total spending by Government Departments so far this year was €77.5bn which was a 7.5% increase on the same period in 2024. That is above the Government's forecast of 5% for 2025.
The rise in spending by the Coalition comes amid warnings from the Irish Fiscal Advisory Council and the Central Bank about the pace of increase in Government expenditure over recent years.
The latest set of Exchequer Returns from the Department of Finance show that income tax so far this year is 4% up on the same time last year.
Corporation tax, excluding payments from Apple, was up 2.5% so far this year.
VAT payments increased 4.8% so far this year and excise rose 3.6%.
The figures mean the Government had an Exchequer surplus of €1.4 billion in the nine months to the end of September compared to a surplus of 0.5% this time last year.
When payments from Apple are excluded, there was an underlying exchequer deficit of €1.9 billion, a deterioration of €6.9 billion on the same period last year.
Non-voted expenditure, or spending which does not require approval by the Oireachtas, was €12.3bn, up by €6.3bn on the same period in 2024 due to the transfer of €6.1bn to two long-term savings funds.
Peter Vale, Tax Partner at Grant Thornton Ireland said today's figures are unlikely to alter Budget 2026 plans, with a tax package of €1.5bn still expected.
"Overall, a solid set of figures in advance of next week's Budget 2026 statement."
"Volatility in corporation tax receipts has a been a feature of the year to date, which continues to make estimating any year end Budget surplus difficult," he added.
