Middle-income earners to benefit if 30% tax rate introduced

Minister for Finance Paschal Donohoe has been examining how a middle rate of income tax could be introduced in the upcoming budget. Picture: PA

A new 30% tax rate, which would apply to 1m taxpayers, will be included in a pre-budget analysis to be released on Wednesday, but no decision has yet been made on its introduction.

The new middle-income rate will form part of the Tax Strategy Group papers to be released on Wednesday ahead of September's budget. Sources said that the analysis shows that 1m taxpayers — either couples or individuals — could fall into the new band.