The Daily Star Ireland
Finance Minister Paschal Donohoe has announced that homeowners will face an increase in Local Property Tax (LPT) from 2026, though he emphasized that the rise will be modest for most. The majority of property owners can expect to pay between €5 and €25 more per year, with the changes tied to upcoming property revaluations scheduled for 1 November.
Property values have surged by over 20% since the last valuation in 2021, and Donohoe stated that both the valuation bands and base LPT rates will be adjusted to reflect this growth. Despite the revisions, he assured that nearly all homeowners—about 97%—will remain within their current tax band due to the widening of valuation brackets.
Impact and Revenue Projections
Without adjustments to rates or bands, the government warned that around 70% of properties would have shifted to a higher band, resulting in steep tax hikes. The planned reforms aim to avoid that outcome, ensuring smoother transitions and minimizing household financial pressure.
Homes valued up to €525,000 will experience the lower end of the increase, while properties above that threshold may see more significant rises in their annual LPT. Overall, the new system is projected to boost local authority revenues by roughly €45 million.
Separately, the minister confirmed that the reduced VAT rate of 9% on electricity and gas will remain in place until at least 31 October. Originally set to revert to 13.5% in May, the lower rate has been extended due to continued concerns over energy costs. The measure is estimated to cost the state between €70 and €80 million.
