A Record Year and What Comes Next
Ireland’s Exchequer closed 2025 with record‑high Tax receipts, reflecting strong economic fundamentals, robust employment, and sustained consumer activity. Underlying Tax revenues reached €105.7 billion, an €8.6 billion increase (8.9%) on 2024, even after excluding the one‑off impact of the Apple CJEU ruling, underscoring durable growth across all major tax heads.
Headline Performance in 2025
Strong Income, VAT, and Corporate Tax Receipts
- Income Tax: €36.6 billion, up 4.3%, driven by Ireland’s largest-ever labour force and rising wages.
- Corporation Tax: €32.9 billion, rising 17.2%, buoyed by exceptional profitability in multinational pharma and tech firms. 2025 corporation tax receipts are now triple their 2019 levels.
- VAT: €22.9 billion, up 5.1%, reflecting resilient consumer spending despite global uncertainty.
- Capital Gains Tax (CGT): Up 25% year‑on‑year, highlighting strong deal activity across the Irish market.
Surplus and Spending
An underlying Exchequer surplus of €3.8 billion was recorded, a €2 billion improvement on 2024. Gross voted expenditure reached €109.4 billion, up 5.5%, driven by targeted investment in health, education, welfare supports, infrastructure, and housing.
What the Experts Are Saying
Tánaiste and Minister for Finance Simon Harris described the results as a testament to the “fundamental strength of our economy,” noting strong performance in the clearest indicators of economic health—income tax and VAT. He emphasised that the Government’s 2026 priority is to “use the resources of the State to improve people’s lives in a sustainable manner,” guided by Ireland’s new Medium‑Term Fiscal and Structural Plan.
Over the past decade, we have witnessed the tax take more than double—an extraordinary trajectory for the Irish exchequer.
Also OECD Pillar Two reforms, which are expected to add €3 billion to revenues in 2026.