Tánaiste Eamon Gilmore said he supports a 15% cut in the property tax for those living in larger urban areas.
Speaking on RTÉ's This Week, Mr Gilmore said he expects certain local authorities to be able to reduce the Local Property Tax by up to 15% in regions where the charge, and income from it, is found to be high.
He said Labour would be supporting this policy where appropriate, when local authority budgets are drawn up at the end of next year.
Mr Gilmore said this would impact householders in larger, urban areas, where property values are higher and where people are paying a higher property tax.
From next year, councillors have the power to reduce or increase the property tax in their area by up to 15%.
Earlier, Minister for Transport Leo Varadkar said he would support the idea of a cut to property tax.
But he added that any cut in tax would have to be matched by a cut to spending.
Traditionally, he said, the Labour Party advocated tax rises ahead of spending cuts.