Cork City homeowners face highest-ever local property tax increase

Cork City councillors rejected a proposed 20% increase but agreed to raise LPT by 15% for the next three years

It comes as Cork City Council recorded a revenue deficit of €1,592,569 for the first time in several years last year. File picture: Denis Minihane.

Homeowners across the city are facing a hike in their local property tax (LPT) to the highest level ever recorded in Cork city.

At a meeting of the council on Monday evening, councillors voted to approve an LPT rate 15% higher than the basic rate set by the national Government, up from the previous rate of 12%, which was increased from 9% in 2024.

It comes as Cork City Council recorded a revenue deficit of €1,592,569 for the first time in several years last year.

City council chief executive Valerie O’Sullivan had proposed an increase to 20%.

Last year, new legislation was passed allowing local authorities to increase the LPT rate by up to 25% above the basic rate. Previously, 15% was the maximum increase.

The additional income from the increase would give the council funding to cover requests made by city councillors for work in their local areas, which would cost €1.1m.

Increasing the LPT variation to 17% would have been enough to cover these costs, but the rate of 15% proposed by councillors would not, she said.

With the higher rate proposed, 20%, the council would have additional income of nearly €2.5m, which would allow for extra funding for footpath repairs, traffic-calming measures and playgrounds. It could also go towards hosting Fleadh Ceoil na hÉireann.

Councillors reject 20% increase

The 20% rate would mean people would pay €32.40 more a year if their home was worth between €350,000 and €437,000, and €46 more if their home was worth between €525,000 and €612,000.

However, Fianna Fáil’s Seán Martin, the head of the council’s finance committee, said councillors would not agree to an increase of more than 15%.

Fine Gael’s Des Cahill added that some other councils in Ireland reduce the national rate and give people money off their LPT, and said that 15% was already the highest the rate had ever been in Cork city.

The four Sinn Féin councillors, as well as Independent Ireland’s Noel O’Flynn, Workers’ Party’s Jerrica Struthers and Independent Albert Deasy, voted against any increase.

Mr O’Flynn said “people are already struggling to make ends meet”, while Sinn Féin’s Joe Lynch said he acknowledged the challenging financial position the council was in, “but the key to addressing this is for parties in government, who are well represented here, to properly fund local government.”

Ms O’Sullivan asked: “What are we meant to do in the meantime?” 

All other councillors voted in favour of increasing the LPT variation to 15%, and agreed to keep it at that rate for three years.

Warning of further LPT increases 

However, Ms O’Sullivan said that this vote did not preclude the executive from raising the matter again next year as more funding would be needed.

“You can reject it, but there comes a time when you must make a connection between what you’d like to do and how it’s going to be,” she said.