Approximately one-third of income earners are effectively outside of the income tax net. Photograph: iStockThe lopsided nature of Ireland’s income tax base was laid bare in a Department of Finance report this week. It noted that the top 10 per cent of income earners here now generate 40 per cent of income tax receipts and 60 per cent of USC (universal social charge) contributions. Even more striking, approximately one-third of all income earners – equating to 1.2 million tax units (which can be an individual or a couple) – are effectively outside of the income tax net courtesy of the State’s generous system of tax credits. That’s because many of the top income earners work for the big US multinationals which pay the lion’s share of corporation tax.

Source: The Irish Times December 07, 2025 10:31 UTC