The Cabinet is considering introducing a property tax based on 0.2% of the value of a home.
That would mean a property worth €175,000 would pay €300 annually and a home worth €275,000 would pay €550.
As the charge will come into effect in July, home owners will only be hit with half of the charge next year and a full levy in 2014.
It is expected that PAYE taxpayers would have the property tax deducted as a tax at source.
This would allow for payments to be spread instead of paid in a lump sum.
However, there is a possibility that the Government could increase the charge to 0.25% of the value of a home if tax revenue for November is weaker than had been hoped.
There is speculation that corporation tax, which is paid by companies on their profits, may not be as strong as it had been in earlier months.
November is also a critical month because it is time when self-assessed income earners file their tax returns.
Speaking to journalists today the Minister for Finance Michael Noonan said that there was an expectation that the Budget would be tough but he stressed it would be fair.
