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Irish Times
5 days ago
- Business
- Irish Times
Dublin city homeowners' Local Property Tax bills to rise next year
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. [ South Dublin councillors agree to cut local property tax by 7.5% for next four years Opens in new window ] 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. [ Local property tax bands and rates set to be changed to stave off big increases Opens in new window ] 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'.
Irish Independent
5 days ago
- Business
- Irish Independent
Explainer: What does the expected hike in Local Property Tax mean for Dublin?
The issue will be voted on at a meeting scheduled for 6.15pm this evening. But what does that mean for homeowners and the city at large? What's going on? The largest local authority in the country, Dublin City Council (DCC), is today expected to increase the rate of LPT for homeowners, subject to a vote this evening by councillors. This is because, for the first time since the LPT was introduced in 2013, they will have elected not to apply a 15pc discount to the baseline rate. The council's governing grouping, made up of Fine Gael, Fianna Fáil, Green Party and Labour councillors, say it'll bring in an extra €16.4m of funds over the coming year for much-needed service improvements. But Sinn Féin, the Social Democrats, People Before Profit and Independents say that not continuing the 15pc discount is unfair on families, pointing to the cost of living crisis. So, how much will I be charged on my home? If you live in the DCC area, your LPT bills will go up by 15pc from this measure alone. However, on top of that, the government is also in the process of adjusting the bands and rates for the tax upwards, meaning even higher payments for households, particularly those with high-value homes. The value of properties that fall into the 20 bands have increased by 20pc, as property values have grown since the last valuation in 2021, meaning 96pc of homes will stay in the same band as before. But each band will also cost homeowners more, for example band 4 properties, which are set to be valued between €420,001 and €525,000 under the changes, will now pay LPT at a rate of €428-a-year, up from €405. Just under 75pc of homes in the DCC area fall between bands 1 and 4, according to Revenue. Band 10 homes, to be valued between €1,050,001 and €1,155,000, will be charged €998-a-year, up from €945. Those in band 19, to be valued between €1,995,001 and €2,100,000, would see their contribution jump to €3,110 from €2,721. Homes with a valuation of more than €2.1m will see an even larger increase, as any value above this cut-off point is charged the highest annual rate of 0.3pc of the property's value. Homes in band 1 (up to €240,000) will pay the lowest LPT, at a fixed rate of €95 annually, up from €90. The combined effect of the rising DCC rate and national revaluation, means that LPT bills could increase by anything up to 34pc for homeowners in Dublin next year. Who's against the increase? The Social Democrats, Sinn Féin, People Before Profit and many independents have been urging councillors to continue reducing the LPT rate, citing cost of living challenges for residents of the capital. Daithí Doolan, Sinn Féin councillor, said not only is his party pushing for the maximum possible 15pc reduction, but they are seeking the abolishment of the tax altogether. 'It is not even a property tax,' he said. 'It is a charge on people's homes. Meanwhile, Dubliners are unfairly punished by the extremely high price of housing in the capital.' Mr Doolan said Sinn Féin saw it as 'unfair, regressive charge', because it is not based on people's incomes. 'The prince pays the same as the pauper,' he added. What will the money be spent on? The DCC governing parties are already gushing about how the extra €16.4m will be spent, with €5.4m of that ring-fenced for housing maintenance in council-owned complexes. Green Party councillor Janet Horner said rejuvenating council housing is a top priority. 'People should not be living with single glazed windows, with mould and cold, damp conditions in our flat complexes,' she said. 'This spending commitment marks a genuine commitment to addressing that injustice.' Around €3m will be spent on additional road, footpath and carriageway maintenance, with another €3m devoted to a revolving fund which would target urban regeneration and vacant properties. Repayment of borrowing for infrastructural projects will be allocated a further €2m, while DCC will get an additional discretionary spend of €1m from the fund. A further €1m will be spent on new apprentices, with the same figure going towards additional zebra crossings. What about the other Dublin councils? Dublin City Council is set to be the only authority in the capital to apply the baseline rate of LPT to homeowners, with South Dublin County Council (SDCC), Fingal County Council and Dun Laoghaire-Rathdown (DLR) County Council all applying reductions to varying degrees. Councillors in DLR recently voted to continue the 15pc reduction for homeowners there, costing the council around €10m in lost income. SDCC has voted for a 7pc reduction in LPT this year, down from their previous 15pc discount level. Fingal councillors also voted to continue reducing the rate, by 5pc, albeit down slightly from the 7.5pc previously.
The Journal
6 days ago
- Business
- The Journal
Property tax is being hiked in Dublin - if you own a house here's how much you'll pay next year
HOMEOWNERS IN DUBLIN will pay a higher rate of property tax next year as a result of a vote being held this evening by Dublin City Council. Councillors are expected to vote to remove a 15% discount on the tax for the first time in over a decade. The council's ruling group, comprising Fine Gael, Fianna Fáil, Labour and the Green Party, agreed after last year's local elections to apply the baseline rate with no discount this year for the first time. The Local Property Tax (LPT) was introduced in 2013 – at the behest of the Troika - and councillors have the power to reduce or increase it by 15% either side of the baseline level; they has consistently voted to keep a reduced rate in recent years. Dublin City Council management has long argued that the vast majority of homeowners would not be hit with substantial additional charges if councillors agreed to reduce the discount applied. According to the council, the decision to lift the discount now is expected to bring in up to €16.4m in extra funding for the city, which will be allocated to areas such as improving the council's housing stock, tackling dereliction and improving footpaths. The cost of property tax is based on the value of a person's home. Dublin City Council said 75% of eligible households will see an increase of between €18 and €83 per year in their property tax as a result of the vote passing, with the remaining 25% set to pay €523 or higher annually. For example, those with a home worth between €240,001 and €315,000 will pay €235 from next year, an annual increase of €43.75. Advertisement Homeowners with a property valued between €420,001 and €525,000 will pay €428 in property tax, an increase of €83.75. Figures released last month revealed that the average price of a second-hand home in Dublin is now €600,047 . Anyone who owns a home worth that amount will see their property tax rise to €523 a year. Houses worth between €1,050,001 and €1,155,000 will have a property tax charge of €998 , up €194.75 annually. For anyone with a house valued at between €1,995,001 and €2,100,000 , annual property tax will cost €3,110 . You can find a full list of the property bands and how much each will pay here . 'The additional revenue raised by ending the LPT tax cut will go towards improving every aspect of Dublin, from the quality of the footpaths and roads, to the quality of the homes that people are living in,' Green Party group leader Janet Horner said. 'No one should be living in damp, mouldy or cold conditions in our Council housing and the revenue we are raising here takes a meaningful step to end that injustice,' the north inner city councillor said. Fine Gael group leader Colm O'Rourke said communities across Dublin have consistently and repeatedly called for improvements in a range of local services, 'and it's time those calls were properly answered'. 'These aren't minor issues, they go to the heart of safety, accessibility and local pride. This investment is about listening to residents and delivering meaningful improvements that strengthen communities right across the city,' the Cabra-Glasnevin councillor said. Property tax for 2026 is owed on 1 November. The government changed property tax bands earlier this year to moderate the increase in the amount of tax payable as a result of increasing house prices. A possible left-leaning ruling coalition on Dublin City council last year including Sinn Féin fell apart over the question of property tax . Sinn Féin wanted to continue to apply the 15% property tax discount. Readers like you are keeping these stories free for everyone... A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation. Learn More Support The Journal
Irish Times
6 days ago
- Business
- Irish Times
Dublin property tax set to rise by up to one third, as councillors vote on hikes
Dublin city homeowners face a hike of up to one-third in their local property tax (LPT) bills next year, if councillors follow through on an agreed increase in the tax rate today. City councillors are expected to vote for the first rise in property tax rates since the charge was introduced in 2013. The change in the city rate, coupled with the upcoming national LPT revaluation, means most homeowners can expect to pay between 22 per cent and 34 per cent more in their bills next year. Fine Gael and Fianna Fáil city councillors have consistently voted for the lowest possible annual LPT charge, but following last year's local elections agreed to increases from 2026 to secure the support of the Green Party and Labour for a power pact on the council. David McWilliams on how 'big incentives' to build could save Dublin city Listen | 36:51 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. READ MORE 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 three other Dublin local authorities also typically apply varying discounts, but outside the capital, most councils raise the charge by 15 per cent each year. If the discount is no longer applied, Dubliners' bills would increase by 15 per cent. However, this move coincides with a national property tax revaluation this November, which comes into force next year, and will mean increased charges for each of the 20 'valuation bands'. The last revaluation was in 2021 and properties in the capital have since increased by an average of about 20 per cent. However, to avoid large hikes in the charge, the value of properties in each band has been increased. The first band will now extend from zero to €240,000, rather than €200,000, with other bands also increasing. This means that 96 per cent of properties will stay in their existing band, but homeowners will face increased charges. A property valued between €420,001 to €525,000 will attract a charge of €428, up from €344.25 from this year's equivalent, also an increase of just over 24 per cent. However, homeowners with higher value properties can expect steeper increases. Houses which will be valued from €1,470,001 to €1,575,000 will have a €1,797 charge, up from €1,382.95, a 30 per cent increase. At the top of the scale, a homeowner in band 19 will get a bill for €3,110, an increase of more than 34 per cent. The rate increase will provide an additional €16.4 million in funds for the council, one-third of which will go towards improving the lives of those living in council housing, said Labour Cllr Darragh Moriarty, by replacing 'single-glazed windows, draughty doors and measures to tackle damp and mould'. Sinn Féin's Daithí Doolan said his party would continue to propose the maximum cut in the charge. 'Dubliners are unfairly punished by the extremely high price of housing in the capital,' he said.
Irish Times
15-07-2025
- Business
- Irish Times
The Irish Times view on the local property tax: homeowners can pay a bit more
It is the time of year when local council decide whether to adjust the local property tax (LPT) bills of householders in their area. Under the rules they can choose to vary the amount of LPT to be paid upwards or downwards from a base figure. Cutting, while popular, leaves the council with less money to spend. The opposite calculus applies to increases. Looking at the decisions made so far, and the debates that have led to them, one thing is clear. There remains a huge reluctance in Ireland to tax residential property. Strangely, the strongest critics of the tax are those further to the left, including Sinn Féin and People before Profit/Solidarity. Housing is by the far the main source of wealth held by Irish people, but these parties object at every turn to raising tax on it. Too many councillors are still refusing to even collect the baseline level of the tax and are thus leaving less cash for their councils to spend. Councillors in Dun Laoghaire-Rathdown, which has the most expensive house prices in the State, voted to continue the maximum reduction of 15 per cent from the baseline level set for the tax. This costs the council €10 million in annual income. South Dublin County Council – where a reduction of 15 per cent from the baseline had been in place – voted to reduce this to 7.5 per cent, though the resulting increase in bills will be tiny in most cases. The decision in Fingal is to reduce the charge by 5 per cent, compared to 7.5 per cent previously. Outside Dublin, councils in Carlow and Wicklow both voted to maintain charges slightly above the baseline – arguing that this underpins important services for the public. READ MORE As well as opposition from many on the left to the tax, in some council – such as Dun Laoghaire-Rathdown – Fine Gael and Fianna Fáil councillors have supported cuts in bills. At a time when councils are scrambling for cash, this smacks of populism. True, bills may increase for some next year anyhow due to a reform of the tax announced by Minister for Finance, Paschal Donohoe. But the additional amounts to be paid will be small for most households. And surely those with properties of €1 million or more can be asked to pay a bit extra? In most cases council management clearly spell out to councillors the implications of their LPT decisions. That many still vote to undermine the funding of local services must be dispiriting for those who actually have to deliver them. At a national level, it is clear that there is no political appetite to increase LPT as a source of revenue, which would be a welcome widening of a very narrow tax base. The reform programme which will apply from next year was cautious and the tax will remain a small contributor to the exchequer. This means that when more tax is needed in the years ahead – as it will be – it will be income taxpayers who will again be hit.
