Dublin city homeowners' Local Property Tax bills to rise next year

Irish Times

21 hours ago

Higher
local property tax
(LPT) bills will be issued to Dublin city homeowners next year following the decision by councillors to scrap discounts for the first time since the tax was introduced more than a decade ago.
The move by
Dublin City Council
members to increase the property tax means homeowners will face charges of €18.50 to €797.15 more next year than in 2025, depending on the value of their home.
Fine Gael, Fianna Fáil, the Greens, Labour and the Social Democrats supported the end of the discount, saying LPT was 'progressive' and a 'wealth tax'.
Sinn Féin, most independents and People Before Profit voted to retain the discount.
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The change in the rate, coupled with the upcoming national LPT revaluation, means most homeowners within the council area can expect to pay between 22 per cent and 34 per cent more in their bills from next year.
LPT, which is based on the value of a property, has a base rate that can be raised or lowered by 15 per cent by councillors each year. Since the introduction of the tax in 2013, Dublin city councillors have always voted for the maximum discount.
The increase will coincide with a national property tax revaluation this November that comes into force next year, and will mean increased charges for each of the 20 'valuation bands'.
For a property in Dublin city valued at less than €200,000, LPT will increase from €76.50 to €95 – just over 24 per cent. For homes between €420,001 and €525,000, the charge will be €428, up from €344.25, also an increase of just over 24 per cent.
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Owners of higher value properties can expect even steeper increases. Homes valued from €1,470,001 – €1,575,000 will have a €1,797 charge – up from €1,382, a 30 per cent increase.
At the top of the scale a homeowner whose house is valued between €1,995,001-€2,100,000 will get a bill for €3,110, up from the €2,312.85 band 19 charge, an increase of more than 34 per cent.
This will provide an additional €16.4 million in funds for the city, the council said. More than €5 million of this would be spent on improvements to social homes, €3 million for road and footpaths, another €3 million for bringing vacant and derelict properties back into use, with smaller sums to fund zebra crossings, apprenticeships, local community initiatives and council borrowing.
Fine Gael, Fianna Fáil and Sinn Féin city councillors had consistently voted for the lowest possible annual LPT charge.
Following last year's local elections, Fine Gael and Fianna Fáil agreed to increases from 2026, to secure the support of the Green Party and Labour for a power pact on the council.
Fine Gael and Fianna Fáil would not agree to increase the LPT in advance of last November's election, but acceded to the increase from 2026 and for each subsequent year until the next local elections in 2029.
Fine Gael's Danny Byrne acknowledged charging the full LPT rate was 'not popular but it is prudent and fiscally responsible'.
Sinn Féin's Daithí Doolan said LPT was 'an unfair regressive tax on people's homes'.
Labour's Darragh Moriarty said 75 per cent of homeowners will have a 'very modest increase' of between €18.50 and €83.75 a year. 'I think that's fair and it's progressive,' he said.
Independent councillor Pat Dunne said the city council should not add 'another burden' to people who were struggling when 'central Government has billions in the coffers'.
The Green Party's Michael Pidgeon said 'fixing Dublin means investing in Dublin'.