| 15.5°C Dublin

Revealed Many homeowners set to face increases of at least €90 in their Local Property Tax bills

Around 640,000 homeowners to face increases of at least €90

Close

Taoiseach Micheál Martin, Tánaiste Leo Varadkar, and Minister for the Environment, Climate and Communications Eamon Ryan launching the Economic Recovery Plan in the courtyard of Dublin Castle yesterday. Photo: Julien Behal

Taoiseach Micheál Martin, Tánaiste Leo Varadkar, and Minister for the Environment, Climate and Communications Eamon Ryan launching the Economic Recovery Plan in the courtyard of Dublin Castle yesterday. Photo: Julien Behal

Taoiseach Micheál Martin, Tánaiste Leo Varadkar, and Minister for the Environment, Climate and Communications Eamon Ryan launching the Economic Recovery Plan in the courtyard of Dublin Castle yesterday. Photo: Julien Behal

Around 640,000 homeowners are set to face increases of at least €90 in their Local Property Tax bills as the Government overhauls the system for the first time since it was introduced.

The new valuation system is based on house prices increasing dramatically since the tax was introduced in 2013.

This means homeowners whose property has increased in value by more than 75pc in the past eight years will face higher bills in the new year.

It is estimated around 36pc of the more than 1.9 million people currently paying property tax will get bigger bills. However, around one in 10 (11pc) will see their bill decrease and the majority (53pc) will see no change in the amount of tax they pay on their home.

Details of the new property tax bands, which have been seen by the Irish Independent, will be published today by Finance Minister Paschal Donohoe. The valuations will be based on house prices this November.

Meanwhile, 100,000 homeowners who were previously exempt from property tax because they bought new builds within the past eight years will get bills for the first time next year.

New homes built since 2013 have been exempt from property tax since the charge was introduced, and the Government has delayed ending the exemption on a number of occasions. Yesterday, Mr Donohoe said the new property tax bills would arrive in people’s homes early next year.

“The structure of the local property tax will continue to be progressive. The more the property is worth, the more tax you will pay, and maintaining that progressivity is something that is really important,” the minister said.

Sinn Féin leader Mary Lou McDonald hit back at the Government’s property tax plans and insisted her party’s position was to abolish the charge.

The changes to the property tax system will bring in an estimated annual revenue of €560m.

While the valuation bands have increased by 75pc, the rate at which the tax is applied will be cut from 0.18pc at present to 0.1029pc.

The new valuation bands have also been designed to ensure people whose homes were valued at less than €200,000 in 2013 do not face significant tax hikes next year.

This is because Department of Finance research showed the biggest increase in house prices was among homes with lower valuations eight years ago.

Sunday World Newsletter

Sign up for the latest news and updates

This field is required This field is required

However, homes worth more than €1m will face higher property tax bills when they are issued next year.

Under the new system, a property valued at €1.13m will have a property tax bill of €1,409, nearly €200 more than the homeowner is paying at present. A property valued at just under €1.66m will have an annual bill of €2,721, up almost €1,000.

Download the Sunday World app

Now download the free app for all the latest Sunday World News, Crime, Irish Showbiz and Sport. Available on Apple and Android devices


Privacy