Ireland collects record €85bn in tax as spending hits €93.6bn

The Irish government collected a record €84.9 billion in tax revenue during the ten-month period ending in October 2026. The Department of Finance published these figures in its latest exchequer returns, marking the highest annual total to date. This inflow of cash arrives at a time when public spending is rising at a rapid pace.

Excluding a specific payment related to the Apple tax case, the state's revenue was €7.9 billion higher than in the same period last year. That represents a year-on-year increase of 10.3 percent. Income tax was the primary driver of this growth, generating €31 billion. This figure was 8.4 percent higher than the previous year, a result the department attributes to high employment levels.

Corporate tax receipts also surged, totaling €23.9 billion, which was 23.4 percent ahead of the 2025 figure. However, a heavy reliance on a few large firms creates volatility. In 2025, Apple, Microsoft, and Eli Lilly alone accounted for 46 percent of business tax receipts. Sales tax generated €20.5 billion, up 7.3 percent, though October saw modest collections because it is not a standard due month for Value Added Tax.

While revenue hit a peak, total gross voted expenditure reached €93.6 billion by the end of October. This spending level was 7.4 percent higher than last year. The Irish Fiscal Advisory Council warned that this year's figures will likely show a shortfall of nearly €2 billion compared to forecasts made last year. Much of this overrun stems from spending in the health sector.

To control costs, the government adopted a new spending framework that caps annual expenditure increases at 6 percent. Simon Harris, the Minister for Finance, stated that the strong economy allows the state to support families and businesses through the 2027 Budget. He announced that an additional €1 billion in tax receipts will be transferred to the Future Ireland Fund next year, above the amounts required by law.

Jack Chambers, the Minister for Public Expenditure, said the rise in spending reflects a commitment to strengthening public services. Orla Gavin, head of tax at KPMG Ireland, noted that the corporate tax surge may partially reverse in November. She said this month is key for distinguishing between timing effects and the underlying trend in receipts. The finance department previously warned that some company payments expected this year would be delayed until early next year.

Sasha Kerins, a tax partner at Grant Thornton Ireland, described the domestic economy as resilient despite difficult international conditions, including renewed inflationary pressures across Europe.