Income tax collected by the State rose by 12.7% last month to €3.3 billion compared to July of 2025 in a sign that the jobs market remains healthy in the months before the Budget.
Consumer spending drove VAT payments which were up 17.5% last month to €3.8bn with a strong activity across a range of sectors.
Last month, corporation tax payments, mainly made by multinationals, rose by 5.1% to €1.3bn.
The latest set of Exchequer returns published by the Department of Finance show taxes collected so far this year are up 6% or €3.4bn when the payments from Apple’s tax case are excluded.
In the first seven months of the year, income tax is up 7.5% to €21.8bn and VAT is up 9.7% to €16.2 billion.
Corporation tax rose 4.7% so far this year to €15bn.
The corporation tax receipts also included new payments from the 15% ‘top up’ tax for large companies.
These payments have been agreed under the OECD/G20 tax arrangements that large multinationals with revenues of more than €750m must pay a 15% tax in every country they operate.
This is effectively a tax increase from the older 12.5% corporation tax rate for large multinationals.
The figures show that the Coalition is managing to keep its spending within the forecast published by the Department of Finance amid concerns about expenditure over runs from the Irish Fiscal Advisory Council.
Spending is up 7.4% in the seven months to the end of July to €64.9bn but is 1.8% below the department’s latest projection.
Of that, capital spending is 10.7% below forecast and current spending is 0.5% under the projection.
There was decline of €1.4bn in the underlying exchequer balance due to transfers to two large State investment funds.
Speaking about the Exchequer return figures, Taoiseach Micheál Martin said they pointed to a robust economy which shows no sign of weakening.
He said it will give the Government “a certain degree of resilience not withstanding the very uncertain world out there we are living in”.
Tánaiste Simon Harris added: “Today’s figures are further evidence of the resilience of our economy.
“In particular, I welcome the strong growth in income tax, which reflects a labour market that is running at full employment despite all the external challenges we are facing.
“In a deeply uncertain world, it is more important than ever that we maintain a sensible and sustainable approach to fiscal policy.”
Additional reporting Barry Lenihan
