The Daily Star Ireland
A majority of Dublin homeowners will face higher Local Property Tax (LPT) bills starting next year, following a vote by Dublin City Council to end the long-standing 15% discount on the base tax rate. This decision will align Dublin with national tax standards for the first time in over a decade.
What’s Changing and Why
The revised property tax rate will apply to households in three of the four Dublin local authorities, alongside a nationwide revaluation of LPT bands effective from November. Dublin City Council estimates that the rate increase will bring in approximately €16.5 million in additional annual revenue, with nearly one-third allocated to housing maintenance.
Until now, the council consistently applied the maximum 15% reduction allowed by law. However, under a new agreement formed by the coalition of Fine Gael, Fianna Fáil, the Green Party, and Labour, that discount will be phased out starting in 2026 and held at the base rate until 2029.
Council figures indicate that some homeowners may see tax increases of up to 34% after the combined effects of property revaluation and the rate change are applied.
How Other Dublin Councils Are Responding
Two additional local authorities—Fingal and South Dublin—have recently moved to reduce their LPT discounts from 7.5% to 5%, raising €1 million and €3 million in extra revenue, respectively. Dún Laoghaire-Rathdown, by contrast, voted to maintain its full 15% discount.
Dublin City Council Chief Executive Richard Shakespeare recommended eliminating the discount altogether, emphasizing the need for a more sustainable funding base to maintain city services amid rising costs. He noted that 75% of properties in Dublin fall within the lower valuation bands, meaning most households would experience weekly tax increases between €0.36 and €1.61.
Where the Additional Revenue Will Go
Mr. Shakespeare outlined how the additional €16.4 million will be used:
- €5.4 million for maintaining public housing
- €3 million for street and footpath repairs
- €3 million for urban renewal, including restoring vacant properties
He stressed that the funding is critical to support services and infrastructure upgrades over the next four years, including major projects like Dalymount Park redevelopment, the City Library in Parnell Square, and the new Smithfield market.
Supporters Say the Tax Is Necessary for Investment
Labour councillor Darragh Moriarty, a proponent of the tax increase, said it reflects the need to reinvest in Dublin’s aging housing stock and city infrastructure. He pointed out that high-value homeowners have historically benefited from generous tax breaks and argued it’s time to redirect that money toward public benefit.
“We’re asking people to contribute more to improve the city—whether that’s insulation upgrades, new windows, or better footpaths,” Moriarty said. “It’s a hard-won but necessary move.”
Fine Gael’s Ray McAdam, now Lord Mayor of Dublin, echoed this sentiment, saying residents expressed a desire for cleaner streets, safer neighborhoods, and visible improvements during the recent local elections. The guaranteed revenue over four years will also give homeowners more certainty when planning their finances, he added.
Opposition Voices Concerns Over Fairness
Not all councillors support the measure. People Before Profit-Solidarity and Sinn Féin opposed the tax hike, describing it as regressive and burdensome for those already struggling with the cost of living. Conor Reddy of PBP-Solidarity criticized the tax as disproportionately affecting working families and pensioners, saying that the wealthy and corporate landlords should bear more of the burden.
“Raising LPT won’t solve the housing crisis,” said Reddy. “We should be collecting unpaid levies on vacant sites and contributions from developers instead of asking homeowners to pay more.”
Sinn Féin’s Daithi Doolan took a similar stance, calling the tax unfair because it doesn’t take income into account. “The prince pays the same as the pauper,” he said, summarizing his party’s objection.
Looking Ahead: A Tipping Point for Local Tax Policy?
The Greens and Social Democrats expressed strong support for the policy change. Green Party leader on the council Janet Horner said it was a progressive step toward improving council-owned housing, while Social Democrats councillors—who have historically backed restoring the tax to base rate—are also expected to vote in favor of the hike, despite some concerns over exemptions for vulnerable homeowners.
With growing financial pressures and an urgent need for housing and infrastructure investment, Dublin’s move could mark a shift in how Irish local governments fund essential services.
