TÁNAISTE SIMON HARRIS has said he does have concerns around inheritance tax, calling it “punitive and difficult at times”.

His comments come as changes are understood to be under consideration by the government for budget 2027. 

While the main priority of the budget for Fianna Fáil and Fine Gael is reducing income tax, ­as reported by The Journal, both party leaders have discussed inheritance tax at recent parliamentary party meetings. 

Harris has previously stated that the thresholds are “unfair”. A number of TDs within his own party have called for the changes in October’s budget. 

Speaking in Cork on Friday, the finance minister said:

“How much one can do in one budget, or how we approach it, will be a matter for consideration in the budget, but this budget needs to be seen as one of the next four.”

“Everybody wants to spend more money, and nobody necessarily wants to work out how to pay for it, and we’ve got to get the balance right,” Harris said. 

One thing that is a certainty for this year’s budget is a tax package. 

“What I’m crystal clear on is there needs to be a personal income tax package. Full stop. End of there has to be. There wasn’t last year. If there isn’t, it means people end up effectively paying more tax next year. There needs to be a personal income tax package,” said Harris.

Tanaiste and Finane Minister Simon Harris and Foreign Affairs Minister Helen McEntee. DFA DFA

The thresholds, the point at which you pay the higher rate of tax, is an important issue that needs to be dealt with, he added. 

“We still pay the higher rate of tax in this country at too low a level. Now, it was about €33,000 back in 2015, it’s now €44,000. I would like to see progress on that in the budgets ahead,” he said.

Workers who work overtime, get a promotion, or see their wages rise should be able to keep their money, said Harris.

“So we will decide the detail in the weeks ahead. Next step is to decide the size of the package this month in the summer economic statement, but I am positively disposed towards that idea of looking at the point at which you pay the higher rate of tax and how much one does in a budget, we’ll have to wait for a few more weeks,” he said.

A childcare package and the roll-out of a savings and investment scheme is also a priority. 

Asked about other possible considerations, The Journal inquired if pay-related maternity benefit might be on the cards one day. 

Related Reads

Inheritance tax shake-up under consideration as Taoiseach notes concerns of those without children

Harris says there'll be budget tax cuts, wants people to 'keep a little bit of their own money'

Tánaiste signals supports for households to shift away from fossil fuels

Former social protection minister Heather Humphreys said in 2024 that pay-related maternity benefit should be considered. 

Harris said there are commitments in the programme for government to consider pay-related benefits.

For some families it’s still not affordable for them to take the time they would want to take with their new child, he said.

“It’s also the view of the programme for government that there should be a link between what you’re paying into the system through PRSI and what you can get back from the system at sensitive and important times in your life. And the birth of a child is obviously one of them,” he said, but he would not give details on timelines.

Foreign Affairs Minister Helen McEntee said that she welcomed the recent move by the government to introduce paid leave when a woman experiences a miscarriage.

“It’s really, really important that people get that time. I hope that people will see the progress that we’ve made, be it on parents leave or parental leave, in trying to support both parents to take that time off with their families. We know the benefit of that time and how that can support the development and growth of the child, but how important it is for parents as well,” said McEntee, stating that she wants to see the progress made by the last government continue.