Home Q&A: All you need to know about Local Property Tax changes

As property values have increased by 23% nationwide from November 2021 to December 2024, it's worth noting certain changes

The LPT revaluation is to take place on November 1, 2025, with the next set valuation period commencing in January 2026 for a duration of five years.  Flle picture

Question

What do I need to know about upcoming Local Property Tax changes?

Answer

When paying your local property tax (LPT) from January 1, 2026, or working out your tax for the first time from November 1 of this year, it’s worth noting that as property values have increased by 23% nationwide from November 2021 to December 2024, there are some changes on the way. 

It’s not all bad news. The LPT revaluation is to take place on November 1, 2025, with the next set valuation period commencing in January 2026 for a duration of five years. What you can expect is a nominal increase on your LPT unless you live in a 12-bedroom mansion in South County Dublin.

Let's start with the upside. The valuation bands that determine what we pay are set to widen by 20%, ensuring most Irish homeowners (the Government estimates this is 96%) will remain in their existing bands. They will start with Band 1: €0-€240,000, then Band 2: €240,001-€315,000. 

Band 3 and all subsequent bands increase in increments of €105,000 over €315,001 up to Band 19. The minister for finance, Paschal Donohoe, also announced a new base rate of 0.0906%, which is used to work out the tax on your property based on its market value. This rate was previously .1029% on the value of the home, so that’s come down. 

That said, taxes are increasing, especially for prestige properties. For the lower bands, the fixed charges (set from the mid-point of the Band) for Bands 1 & 2 will be increased: from €90 to €95 for Band 1, and from €225 to €235 for Band 2.

If you’re wondering why your PLPT might potentially be higher, it’s because those fixed charges sop up some of your savings on the percentage weighed to make up your LPT. There is a 5%-6% increase expected in LPT for properties valued under €1.26 million. 

Properties higher than €1.26 million, or properties that have appreciated significantly in value since 2021, will pay LPT that is “proportionate to these factors”. Properties valued at €2.1 million or above will be charged on their actual value.

Don’t panic. If your home is valued at €525,000 or lower on November 1, 2025, the increase to your LPT will likely be no more than €30 extra a year. 

It’s worth noting that from 2026, local authorities will now be able to vary LPT upwards by up to 25% and downwards by 15%. This is termed a “local adjustment factor” to cover the desirability and struggle of some areas within areas, where houses relatively close in address of the same type can vary in their market value. 

The Government gives this example:

A house in Cork (South-West Region), valued at €370,000 in 2021. The new estimated value could be €470,000 with local variations, an increase of 27%. That house remains in its original Band 4, and its liability for LPT goes up a relatively modest €23 from 2026, an increase from €405 in 2021 to €428 in 2026. That payment will be effectively frozen from 2026 until the next revaluation by the Government in three to five years.

Value of your home

So, what is your house worth, and how do you come to the right figure to ensure your LPT is correct? This is a self-assessment figure based on “market values”. You will either be registering for LPT for the first time (with a new build or newly renovated home) or picking up on the LPT attached to the house or apartment you’ve recently bought. 

Once your new home has stamp duty paid, it is registered for LPT and has a property ID and an Eircode on those records. You will just update your personal details. If you know your property has increased in value, for example, you’ve added an extension, from November 1, you should update your valuation using the Property ID. 

There’s a Property Valuation Tool on Revenue.ie that can simply tot up the likely value of your home in one of the 18,600 “small areas” of the country, so keeping in mind any unique specifics of your property, start there.

Revenue advises: “When you value your property, you should include the value of lands and other buildings associated with your property.  This includes lands or buildings that have domestic or residential purpose, or an amenity such as a yard, garden or patio, driveway or parking space, garage, shed or greenhouse, garden room or home office, and land up to one acre (0.4047 hectares) most suitable for enjoyment with the property, closest to the property, for example, the land that you use as a garden. 

"You don’t have to include sheds used for agricultural purposes.” (I would add here if you have horses, ensure you have a herd number registered with the Department of Agriculture — something that’s often overlooked, but it’s the law of the land.)

Money is tight for most families, and clearly there’s a temptation to fudge things downward and slide into the narrowest band possible when settling on a valuation. Keep in mind that a 20% increase in the bands of values may help you out. 

Deferrals

There’s also been an adjustment to income thresholds for deferrals of LPT payments (a whopping 30%-40%), which is another encouragement to be honest and straightforward when making your valuation. 

From 2026, the income threshold for a full deferral for a single person will be increased from €18,000 to €25,000. For a couple, it will be increased from €30,000 to €40,000. 

The threshold for a partial deferral for a single person will be increased from €30,000 to €40,000. For a couple, it will be increased from €42,000 to €55,000.

Payments

Citizens Advice offers this useful tip: “If you paid LPT for 2024 with a repeating payment method, such as a direct debit, the payment will continue in 2025 unless you choose a different way to pay. Repeating methods include LPT deductions from your salary, pension or social protection payment. 

"Any changes you make to the way you pay (for example, if you want to make a once-off direct payment) can be easily handled online through your own Revenue Property Record. First time out, Revenue assigns a unique Property ID to each residential property for LPT purposes, and you will be assigned a PIN to go with your account. You can use your existing login details for myAccount or Revenue Online Service (ROS).”

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