Budget 2013 Property: Watered down ‘mansion tax’ will see most pay standard rate
A higher rate of tax will apply to homes valued at over €1m, but only on that portion of the value that exceeds the million mark. The bulk of the value will be taxed at the standard rate. In practice, that means a house valued at €1.2m will be taxed at a rate of 0.18% on the first €1m and at 0.25% on the remaining €200,000, giving a tax liability of €2,300 instead of the €3,000 that might otherwise have been due if the higher rate had applied to the full value.
While the late introduction of the mansion tax is understood to have been key to securing agreement between the coalition partners on the property tax, and has been credited with reducing the proposed standard rate property tax from an anticipated 0.2% to 0.18%, the actual value of it to the exchequer is unclear.
