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Ireland Exchequer Deficit: February Revenues Down €1.8bn Despite Income Tax Rise

Ireland's Exchequer Surplus Narrows Amidst Shifting Tax Landscape Ireland’s exchequer surplus decreased to €7.1 billion in 2025, down from €12.8 billion in 2024, a decline of €5.7 billion. This shift is largely attributed to the phasing out of…

Ireland Exchequer Deficit: February Revenues Down €1.8bn Despite Income Tax Rise

Ireland’s Exchequer Surplus Narrows Amidst Shifting Tax Landscape

Ireland’s exchequer surplus decreased to €7.1 billion in 2025, down from €12.8 billion in 2024, a decline of €5.7 billion. This shift is largely attributed to the phasing out of substantial once-off receipts from the Apple tax case, according to recent figures released by the Department of Finance .

Impact of Apple Tax Windfall

The Irish government collected €3.6 billion in corporation tax in December 2025, bringing the total for the year to €34.7 billion. However, 2024 figures were significantly boosted by a one-time payment of over €14 billion from the Apple tax case following a ruling by the Court of Justice of the European Union (CJEU). Excluding these Apple-related receipts, the government recorded corporation tax receipts of just under €33 billion in 2025, representing an increase of over 17% .

Underlying Surplus and Revenue Trends

Excluding the impact of the Apple tax receipts in both years, the Department of Finance reported an underlying surplus of €3.8 billion, an improvement of €2 billion. Total government tax revenue in 2025 reached €107.4 billion, a slight decrease year-on-year. However, excluding CJEU-related proceeds, tax receipts rose by almost 9% to €105.7 billion .

Expenditure and Fund Transfers

Gross government revenue in 2025 totaled €133.3 billion, up 3.2% from 2024. Total government expenditure reached €126.2 billion, with gross voted expenditure rising to €109.4 billion, a 5.5% increase. Non-voted expenditure totaled €16.9 billion, an increase driven by transfers to the Future Ireland Fund and the Infrastructure, Climate and Nature Fund .

Recent Tax Revenue Data (February 2026)

February 2026 saw tax revenues of €5.2 billion, up just under 2% annually. Income tax receipts were over 10% ahead of the same month last year, although corporation tax receipts were 20% below the amount collected in February 2025. VAT receipts were up just under 4% cumulatively, and excise duty receipts were slightly up on the previous year. However, capital gains tax and capital acquisitions tax receipts were down over 21% and €8 million respectively .

Government Perspective

Minister for Finance Simon Harris noted the positive growth in income tax as a reflection of the strength of the Irish economy. He emphasized the importance of maintaining economic resilience through surpluses, transfers to wealth funds, and controlled public spending . The March returns, which include the first significant month for corporation tax payments, are expected to provide a clearer picture of the public finances.

Apple Tax Receipts Timeline

The first €3 billion tranche of the Apple tax money landed in State coffers in October 2024, boosting the Government’s finances. Minister for Finance Jack Chambers anticipated approximately €8 billion of the total €14.1 billion windfall to be received in 2024, with the remainder arriving in 2025 . Ireland recorded an exchequer surplus of €12.8 billion in 2024, an improvement of €11.6 billion on the previous year, largely due to these Apple tax receipts .

About the author: Marcus Liu - Business Editor

MBA and ex‑B bureau chief specializing in global finance and fintech. Marcus speaks Mandarin, Japanese, and English, and has interviewed CEOs from the Fortune 50 to Y‑Combinator unicorns. Marcus Liu delivers sharp analysis on markets, startups, and corporate strategy for investors and entrepreneurs alike.