Wexford Records Second-Highest Average Inheritance Tax Bill in Ireland

People paying inheritance tax in Wexford faced the second-highest average bill in the country last year, according to new research from the Oireachtas Parliamentary Budget Office.

The figures show the average inheritance tax payment in County Wexford stood at approximately €73,000, with only Wicklow recording a higher figure.

In Wicklow, 411 people paid an average of €106,886 in inheritance tax last year.

Wexford was next highest, while Westmeath and Offaly followed with average payments of around €71,000.

The figures come as inheritance tax has become an increasingly prominent political issue, with pressure for changes to the system — particularly for people who inherit property, land or family farms but are not the children of the person who has died.

Under the current Capital Acquisitions Tax system, different tax-free thresholds apply depending on the relationship between the person giving the inheritance and the beneficiary.

Under Group A, a child can currently receive up to €400,000 from a parent before inheritance tax applies. Any amount above the threshold is generally taxed at 33%.

The tax-free threshold falls significantly under Group B, which includes siblings, nieces, nephews and, in certain circumstances, grandchildren. The threshold for this group is €40,000.

A third category, Group C, applies to beneficiaries who do not fall into the first two groups and carries a tax-free threshold of €20,000.

The difference between the categories has led to particular concern in rural communities where a farm may be passed to a niece, nephew or other relative because the owner has no children.

Fine Gael TD Brian Brennan has highlighted concerns raised with him by older bachelor farmers who fear the person eventually inheriting their farm could be faced with a substantial tax bill.

He has argued that the current arrangements can leave beneficiaries in Category B facing significantly greater tax liabilities than children inheriting under Category A.

The Parliamentary Budget Office research also indicates that receipts from the main inheritance tax categories have risen rapidly since 2023.

Group B has consistently accounted for the largest share of inheritance tax receipts over the period examined, followed by Group A, although the gap between the two has narrowed considerably since 2023.

Attention will now turn to Budget 2027, which is being announced today, with changes to inheritance and gift tax thresholds expected to be among the measures considered.

However, Public Expenditure Minister Jack Chambers has already ruled out completely equalising the Group A and Group B thresholds.

Speaking last month, Minister Chambers said bringing the two categories into line would cost the Exchequer hundreds of millions of euro.