Narrow Irish wealth tax would yield 109 million euros, ESRI finds

A wealth tax aimed at the richest households in Ireland would raise only 109 million euros a year if family homes, farms, and business assets are exempt, the Irish Examiner reported. The study was co-authored by economists from the Economic and Social Research Institute and the Department of Finance. The research modelled a 1% annual tax on households with a net wealth above 2 million euros, or 4 million euros for married couples. [1]

The Irish Examiner reported that exemptions for the family home, farms, and business assets cut deeply into the total revenue that could be raised. When the proposed tax covered only savings, investments, second properties, and valuables, approximately 5,000 households would be required to pay. This figure represents 0.3% of all households in the country. [1]

The research showed that affected households would pay an average of about 21,000 euros each. According to the Irish Examiner, the study also found that a narrow wealth tax would fall mainly on older people. [1]

Economic analysis defines wealth as the net accumulation of assets exceeding liabilities, representing stored value from prior savings, investments, or transfers rather than ongoing earnings. As FTMQ News reported earlier, Ireland previously announced plans for tax exempt personal investment accounts starting in July 2027, allowing residents to save up to 12,000 euros a year with the first 50,000 euros exempt from tax. [5][7]