Councillor calling on the Government to lift the income tax burden from Carer’s

Cllr Richie Molloy is calling on the Government to lift the income tax burden from Carer’s Allowance and Carer’s Benefit payments, championing greater support for those who care for others.

In Ireland, Carer’s Allowance and Carer’s Benefit are taxed, but the Department of Social Protection does not take out tax before paying you. Since January 1, 2026, Revenue will automatically notify recipients of these payments, so recipients will not have to report them. Tax will be taken by changing your yearly tax credits or tax bands.

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Tax liability will depend on individual circumstances. Recognition that Revenue’s communication about this change has caused concern and confusion for many family carers. However, this is not a change in tax policy; Carer’s Allowance and Carer’s Benefit have always been taxable.

It was confirmed with Revenue that this process will only apply going forward. Revenue will not review tax liabilities from previous years. This means family carers who did not declare Carer’s Allowance or Carer’s Benefit before January 1, 2026, will not receive a tax bill for past years because of this change, unless the carer chooses to declare a liability for those years.

For instance, if a carer or their partner applies for tax relief, credits, or medical expenses from previous years, they will need to declare any Carer’s Allowance or Carer’s Benefit received during that time. This could lead to a tax bill, depending on their personal situation. Carers are encouraged to weigh their options carefully before making any claims, and sometimes, waiting may be the wisest choice.

Revenue has promised to approach every case with empathy, working with carers and their families to arrange manageable payment plans for any outstanding tax.
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