Banding system could benefit some owners

Q. How much is the Local Property Tax?

A. The simplistic answer is the tax is 0.18% of the market value of your home up to a value of €1m and 0.25% on any portion of the value that exceeds €1m. But the reality is more complex as the market value will be rounded up or down depending on the band it falls into.

The bands are in blocks of €50,000, so a house valued at €260,000 will fall within the €250,001-€300,000 band and will be valued for tax purposes at €275,000 — the mid-point in the band. The owner will have to pay €495 as opposed to the lower sum of €468 that would apply to the actual value of €260,000. That works to the advantage of someone with a house valued above the mid-point — for example the owner of a house with a market value of €290,000 will also pay €495 instead of the €522 that would apply if the tax was a straightforward cut off the actual value.