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Key Findings

Environment taxes rose by 7% in 2025 to €5.9 billion

Online ISSN: 2009-7956
CSO statistical release, , 11am

Key Findings

  • In 2025, €5.9 billion was collected in environment-related taxes. This was an increase of 7% on 2024, and the highest amount collected between 2016 and 2025.

  • Most environment taxes were taxes on energy products, such as heating and transport fuels. Energy taxes accounted for 66.7% of all environment taxes, or €3.9 billion, in 2025.

  • Transport taxes (including motor tax and vehicle registration tax) accounted for 32.7% of all environment-related taxes in 2025.

  • Pollution and resource taxes, such as the plastic bag levy, made up 0.5% of environment-related taxes in 2025.

  • Environment-related taxes were 4.3% of total taxes in 2025. The share of environment taxes in total tax revenue was down from 7.7% in 2016.

  • Households paid the largest share of environment taxes in 2025 at 59% of the total, or €3.5 billion. 

Statistician's Comment

The Central Statistics Office (CSO) has today (24 July 2026) published Environment Taxes 2025.

Commenting on the release Clare O'Hara, Statistician in the Environment Division, said: "Environment taxes reached a record €5.9 billion in 2025, increasing by 7% (€0.4 billion) compared with 2024. This was the highest amount of environment-related tax revenue collected between 2016 and 2025. The increase was mainly driven by the increase in tax revenue from the PSO levy on electricity consumers, excise duty on heating and transport fuels, and carbon tax (See Figure 1 and Table 1).

Although environment tax revenue reached its highest level on record in 2025, it represented a smaller share of Ireland’s overall tax revenue than a decade ago. Environment taxes accounted for 4.3% of total tax revenue in 2025, compared with 7.7% in 2016 (See Figure 1 and Table 1).

Energy Taxes

Energy taxes remained by far the largest source of environment tax revenue, accounting for two-thirds of all environment taxes collected in 2025, when they rose 12% to €3.9 billion. More than half of this figure was from excise duty on fuels such as petrol, road diesel, and marked gas oil, while carbon tax contributed almost one-third. Carbon tax receipts rose by 10% €1.2 billion in 2025 (See Figure 2 and Table 1).

Transport and Pollution Taxes

Transport taxes fell by 2% to €1.9 billion in 2025. Vehicle Registration Tax (48%) and Motor Tax (48%) together accounted for almost all transport tax revenue (See Figure 2 and Table 1).

Pollution and resource taxes remained a relatively small component of environment taxes, increasing from €10 million in 2023 to €30 million in 2025, mainly reflecting higher receipts from taxes such as the landfill levy and the plastic bag levy (See Figure 2 and Table 1).

Economic Sector of Taxpayers

Households continued to pay the largest share of environment taxes, contributing €3.5 billion or 59% of the total collected in 2025. Businesses accounted for most of the remaining revenue with the Services sector paying €1.5 billion (26%) and the Industry sector €0.7 billion (12%). The Agriculture, Forestry & Fishing sector accounted for €0.1 billion, or 2% of total environment taxes (See Figure 3 and Tables 2-5)."

Editor's Note

An environment tax is defined by Regulation (EU) 691/2011 as "a tax whose tax base is a physical unit (or a proxy of a physical unit) of something that has a proven, specific negative impact on the environment, and which is identified in the European System of Accounts as a tax."

Environment Taxes by Type of Tax

Figure 1 and Table 1 show that environment tax revenue was highest of the time period 2016-2025 in 2025 at €5.9 billion, although the share of environment taxes in total tax revenue fell from 7.7% in 2016 to 4.3% in 2025.

Figure 2 shows that energy taxes made up the largest proportion of environment taxes each year between 2016 and 2025, contributing 66.7% of the total in 2025. Energy taxes are mostly taxes on energy products, such as heating and transport fuels. Transport taxes made up the next largest share each year and were 32.7% of the total in 2025. Pollution and resource taxes, such as the plastic bag levy, accounted for the remaining 0.5% in 2025.

X-axis labelEnvironment tax revenueShare of total tax revenue
20165.1177.7
20175.2327.5
20185.1196.8
20195.0456.2
20204.505425.8
20214.982295.3
20224.428074
20234.931994.3
20245.499114.4
20255.87934.3
X-axis labelEnergyTransport Pollution and Resource
20163.1351.9240.058
20173.2581.9290.046
20183.1761.9170.026
20193.041.9870.019
20202.786171.708160.01109
20213.231751.737180.01336
20222.647761.761670.01864
20233.03021.892210.00958
20243.508461.960290.03036
20253.923951.92510.03025
Table 1 Environment Taxes by Type of Tax, 2016-2025

Environment Taxes by Economic Sector of Taxpayer

Households paid the largest sector share of environment taxes each year between 2016 and 2025, paying 59% of the total or an estimated €3.5 billion in 2025. The Services sector paid €1.5 billion in environment taxes in 2025, or 26% of the total, while the Industry sector paid €0.7 billion, or a 12% share. The share of environment taxes levied on the Agriculture, Forestry and Fishing sector in 2025 was 2% (See Figure 3 and Tables 2-5).

X-axis labelAgriculture, Forestry and FishingIndustryServicesHouseholdsNon-residents
20160.0610.3081.3113.2940291614850.143970838515
20170.0670.341.3743.3699203828560.082079617144
20180.0710.3521.3553.2561473561340.084852643866
20190.0640.3281.2393.308980370.10601963
20200.066730.470421.060022.859560.0487
20210.080240.606111.230122.976980.08884
20220.06740.440741.112072.732730.07441
20230.069540.69571.15452.940450.07176
20240.078810.624061.393463.353480.04926
20250.089830.73261.536333.4680.05223
Table 2 Environment Taxes by NACE Sector of Payer, 2016-2025

Table 3 Energy Taxes by NACE Sector of Payer, 2016-2025

Table 4 Transport Taxes by NACE Sector of Payer, 2016-2025

Table 5 Pollution and Resource Taxes by NACE Sector of Payer, 2016-2025

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