With the 2027 State Budget due to be presented in the coming months, the Government says any further reduction will depend on how the economy and the country's public finances evolve. While ministers have not ruled out another tax cut, they have stopped short of guaranteeing that it will happen next year.

The Government has pledged to reduce IRS by a further €1.5 billion before the end of the legislature, but the timetable for those cuts remains undecided. Officials say upcoming decisions will take into account economic growth, tax revenues and the overall budget position before any new measures are announced.

The comments come just weeks before work intensifies on the 2027 State Budget, when the Government is expected to outline its fiscal priorities for the year ahead. Until then, taxpayers will have to wait to see whether another reduction in IRS rates forms part of the package.

Although no decision has been made for 2027, the Government's position means taxpayers should not assume another reduction is guaranteed. As in previous years, any changes to IRS rates or tax brackets are expected to be announced as part of the State Budget, giving employees and pensioners a clearer picture of how their income could be affected in the following year.