New research examines hypothetical wealth tax scenarios in Ireland

Today (Tuesday, 13 October 2026) the Economic and Social Research Institute (ESRI) published research, co-authored and funded by the Department of Finance.

The new research uses the latest available data from the 2023 Household Finance and Consumption Survey to examine changes in Irish household wealth over time and assess a range of hypothetical annual net wealth tax scenarios, based on a 1 per cent tax rate.

The study explores how varying the assets included in the tax base and the wealth thresholds at which liability begins affect estimated aggregate tax liability and the number and characteristics of households that would be liable to pay the tax.

The scenarios are illustrative only and do not represent revenue forecasts or policy recommendations.

Key findings

· Irish household wealth has increased substantially over the past decade and household balance sheets have strengthened. Total net household wealth was almost two and a half times higher in 2023 than in 2013. Over the same period, household debt fell from 25 per cent to 11 per cent of gross assets.

· Wealth remains highly concentrated, despite a rise in the share held by the bottom half of households. The wealthiest 10 per cent of households held almost half of total net wealth in 2023. The composition of wealth has also changed, with business wealth accounting for a larger share than a decade earlier.

· The assets included in a wealth tax matter more than the threshold at which the tax begins. At any given threshold, scenarios covering a broad range of assets generate substantially larger overall tax liabilities than scenarios excluding major assets such as the main residence, farms and business wealth. Applying a lower threshold to a narrow set of assets does not offset the exclusion of these major forms of wealth.

· Very high thresholds can limit tax liability to a small number of wealthier households, but material overall tax liabilities arise only when a broad range of assets is included in the tax base. In the scenarios examined, fewer than 1.5 per cent of households are liable at the highest thresholds. However, scenarios that also exclude major asset classes such as business wealth, farms and the main residence generate much smaller aggregate liabilities.

· Restricting liability to a small share of the wealthiest households would not eliminate payment difficulties linked to current income. The analysis finds these constraints arise not only in scenarios affecting a broader share of households, but also among some very wealthy households whose taxable wealth is high relative to their current income, particularly where this wealth is tied up in less liquid assets.  

Commenting on the research, author Dr Rachel Slaymaker of the ESRI said:

“Our analysis highlights important trade-offs between the number of households affected, the total tax liability generated and the assets brought within the scope of any wealth tax. It also shows that payment challenges linked to current income can arise even among some very wealthy households. Any consideration of an annual wealth tax would need to weigh up these factors, alongside its interaction with the wider tax system and whether reforming existing taxes could achieve the same objectives more effectively.”