Income tax last month rose 12.7% on same period last year
Irish Exchequer returns for July 2026 show a 12.7% increase in income tax and strong VAT growth, signaling a robust national economy. Government spending remains within projected limits despite concerns regarding potential expenditure overruns.
Why it matters
The data provides a critical health check on the Irish economy ahead of the upcoming national budget, influencing fiscal policy and public spending decisions.
Income tax collected by the State rose by 12.7% last month to €3.3 billion compared to July of 2025 in a sign that the jobs market remains healthy in the months before the Budget.
Consumer spending drove VAT payments which were up 17.5% last month to €3.8bn with a strong activity across a range of sectors.
Last month, corporation tax payments, mainly made by multinationals, rose by 5.1% to €1.3bn.
The latest set of Exchequer returns published by the Department of Finance show taxes collected so far this year are up 6% or €3.4bn when the payments from Apple's tax case are excluded.
In the first seven months of the year, income tax is up 7.5% to €21.8bn and VAT is up 9.7% to €16.2 billion.
Corporation tax rose 4.7% so far this year to €15bn.
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