Ireland wealth tax would generate only €109 million annually with key exemptions
A new ESRI study finds that a 1% wealth tax on assets above €2 million, excluding homes, farms and businesses, would raise about €109 million per year.
Economists from the ESRI and the Department of Finance estimated that a 1% wealth tax on Irish households with net assets above €2 million ( €4 million for married couples) would bring in just €109 million annually if the tax excludes the family home, farms and business holdings. Under this narrow base, only about 5,000 households - 0.3% of all - would be liable, each paying roughly €21,000. Expanding the base to all non-pension assets would increase revenue to €1.03 billion from around 27,000 households, similar to the €1.12 billion collected in gift and inheritance tax last year.
The study notes that such exemptions have historically been used to make wealth taxes politically palatable but also reduce their fiscal impact and encourage avoidance, potentially lowering the net revenue to €74 million. It also highlights that a narrow wealth tax would disproportionately affect older households, who hold more savings and second properties. The researchers did not advocate for a wealth tax, noting the 2022 Commission on Taxation and Welfare recommended reforming existing capital taxes instead.
