How much tax could my beneficiaries pay on my life insurance payout?

This depends on the relationship between the policyholder and the beneficiary. A spouse or civil partner is fully exempt, regardless of the amount. A child can receive up to €400,000 tax-free (Group A threshold), a sibling, niece or nephew up to €40,000 (Group B), and anyone else – including a cohabiting partner – up to €20,000 (Group C). Anything above the relevant threshold is taxed at 33%. These thresholds are set by Revenue and reviewed periodically, so it’s worth confirming the current figures before relying on them. (Source: Revenue.ie, correct as of August 2026.)