Numbers are in for Q1 2026, and despite corporation tax being down, and concerns around inflation and energy prices, the overall tax revenues in the quarter came to €22.6 billion, up by 3.4% on 2025.

Corporation tax in Q1 was down by about €100 million compared to the same period last year. However, according to the Department of Finance, “Q1 is one of the less significant payment periods for this revenue stream”. Income tax receipts had increased by 6.1%, and VAT receipts were up by 5.3% on Q1 2025. 

Meanwhile, the Central Bank has issued revised figures for expected inflation around 2.9% in their Quarterly Bulletin, in comparison to 2.1% in 2025. “Higher oil and gas prices are expected to lead to lower growth and higher inflation than previously anticipated. The extent of these effects will depend on the intensity and duration of the conflict, as well as the scale of damage to critical infrastructure in the Middle East,” according to that report. There are, of course, a wide range of possibilities arising from international conflicts, and the report goes on to note that “A lengthier conflict with significantly more disruption could see inflation in Ireland being about 1 percentage point higher than that baseline on average over the next three years.”

The government is continuing to spend cautiously, for the most part, and has already transferred €18bn to the Future Ireland Fund (FIF) and Infrastructure, Climate and Nature Fund (ICNF) – both funds with longer term impact. 

Tánaiste and Minister for Finance, Simon Harris T.D. said, “This is of course a period of profound uncertainty. As a result of this Government’s record of solid management of the public finances, we are in a strong position to respond as needed to protect households and businesses: we demonstrated this two weeks ago by introducing a package of temporary supports to ease the burden of the energy price shock.”