The Minister for Finance has confirmed the Local Property Tax will go up in 2026, but says increases will be limited.
Paschal Donohoe said that most property owners will see their LPT rise by between €5 and €25, and that revaluations of properties are due to take place from 1 November.
"The valuation bands will be widened in line with property price growth that we have seen in recent years, and the base rate of local property tax will be amended," he said.
"The widening of the bands will ensure most property owners will remain in the valuation band that they are currently in."
The minister said property prices have risen by more than one fifth since 2021 when homes were last valued.
"Every property owner will be asked to pay at least a small amount more in property tax from 2026 onwards."
As a result of the changes, local authorities will see revenue from the LPT increase by around €45 million.
According to the CSO, property prices increased by a national average of 23% in the period November 2021 to December 2024.
If revaluation of properties were to proceed in November 2025 without any amendments to the bands or rates, approximately 70% of properties would move up at least one band, which would result in a significant increase in LPT due for most homeowners.
Minister Donohoe earlier brought a memo to Government setting out a number of amendments to the LPT charging mechanism.
With these changes in place, 97% of properties are expected to stay within the same band.
Properties that are valued at €525,000 or less on 1 November will be paying the additional €5 and €25 a year. Properties which are valued above that, will see a higher increase to their LPT charge.
The changes to the Local Property Valuations could see up to 3% of homeowners pay substantially more tax as their home moves to a new tax band.
Minister Donohoe also confirmed that the VAT rate on electricity and gas will not rise from its current 9% .
The VAT rate was due to go up on 1 May to 13.5%, but the minister said he would bring a financial resolution tomorrow to extend the current rate to 31 October.
"This is in recognition of the impact that energy prices are still having on people," he said.
The minister said extending the lower vate rate will cost €70 to €80m.
Additional reporting Joe Mag Raollaigh
