If you are a homeowner, then you are probably aware that Local Property Tax (LPT) is to be reevaluated on November 1, 2025. According to Minister of Finance, Paschal Donohoe, the new valuation period will begin in 2026 for a duration of five years up to 2020. These upcoming changes are described as a way to ensure fairness and stability for homeowners.
But behind the positive messaging, my assessment of the new rules has also highlighted some potential hidden consequences that every homeowner should understand.
In this post, I will try to summarize the important areas of the government press release on April 1, 2025, critically analyse it, and also provide my thoughts on the possible positive and negative implications of the upcoming increases in property tax.
Key Summaries from the April 01 Gov.ie Press Release.
I have to admit, there was a lot mentioned in the press release, so I have tried to narrow down the most important takeaways below. If you want to read the original announcement, please visit the official website HERE.
Please see below.
| Measure | Detail |
|---|---|
| Revaluation Date | 1 November 2025 |
| Next Valuation Period | 2026–2030 (5 years) |
| Valuation Bands | Widened by 20%, most people will remain in their current valuation band. |
| Base LPT Rate | 0.0906% (applies up to €1.26m) Lowered from 0.1029% |
| Base Charge Increases | +5–6% for properties under €1.26m |
| High-Value Properties (€1.26m–€2.1m) | 0.0906% on first €1.26m + 0.25% on balance |
| Very High-Value Properties (>€2.1m) | 0.0906% on first €1.26m + 0.25% up to €2.1m + 0.3% on remainder |
| Majority Impact | 96% of homes stay in current band Most under €525k pay €5–€25 extra annually |
| Deferral Thresholds (Full) | Single: €25k (was €18k) Couple: €40k (was €30k) ***Payments only postponed, not removed |
| Deferral Thresholds (Partial) | Single: €40k (was €30k) Couple: €55k (was €42k) ***Payments only postponed, not removed |
| Local Authority Discretion | Councils can now increase LPT up to +25% (was +15%) Downwards still –15% |
| Additional Yield | +8% LPT annually (~€45m) for local authorities |
| Exemptions | Extended to homes damaged by defective concrete blocks (Clare, Limerick, Sligo) |
| Mandatory Field | Eircodes required in LPT returns (subject to Data Protection review) |
| Next Revaluation after this cycle | 1 November 2030 |
What Else the Department of Finance Says.
The Department of Finance also highlights these main points:
- Small increases of €5–€25 per year for most homes under €525k.
- High-value homes (€1.26m+) face proportionally higher charges.
- Deferral thresholds raised so lower-income households can postpone payment.
- Local funding boost – councils expected to gain €45m extra per year for services.
What is a +25% Local Adjustment Factor?
Every local authority already has the power to adjust the Local Property Tax (LPT) in their area. It’s called the Local Adjustment Factor (LAF).
Up until now:
- Councils could increase LPT by up to 15%.
- Councils could decrease LPT by up to 15%.
In practice, some councils use it to lower LPT to score political points (e.g., South Dublin lowers it repeatedly); while other local councils keep it either neutral or push it upwards.
But starting 2026 under this Bill:
- Councils can increase LPT by up to 25%.
- Councils can still only reduce LPT by up to 15%.
What this Means for Homeowners.
- The “base” LPT charge normally calculated from your property band is not the final bill.
2. Your council can add up to 25% more on top of that base figure.
For example:
- If your overall LPT bill is €500, your local council could raise it to €625.
- If your LPT bill is €1,000, it could be pushed to €1,250.
So the real cost to homeowners depends heavily on local political decisions and council finances.
Old and New LPT Bands (2022-2025) & (2026-2030).
| Valuation bands and charges | Valuation bands and charges | |||
| 2022 – 2025 | 2026 – 2030 | |||
| Valuation Band | LPT Charge | Valuation Band | LPT Charge | |
| 1 | 0 – 200,000 | €90 | 1-240,000 | €95 |
| 2 | 200,001 – 262,500 | €225 | 240,001-315,000 | €235 |
| 3 | 262,501 – 350,000 | €315 | 315,001-420,000 | €333 |
| 4 | 350,001 – 437,500 | €405 | 420,001-525,000 | €428 |
| 5 | 437,501 – 525,000 | €495 | 525,001-630,000 | €523 |
| 6 | 525,001 – 612,500 | €585 | 630,001-735,000 | €618 |
| 7 | 612,501 – 700,000 | €675 | 735,001-840,000 | €713 |
| 8 | 700,001 – 787,500 | €765 | 840,001-945,000 | €808 |
| 9 | 787,501 – 875,000 | €855 | 945,001-1,050,000 | €903 |
| 10 | 875,001 – 962,500 | €945 | 1,050,001-1,155,000 | €998 |
| 11 | 962,501 – 1,050,000 | €1,035 | 1,115,001-1,260,001 | €1,094 |
| 12 | 1,050,001 – 1,137,500 | €1,189 | 1,260,001-1,365,001 | €1,272 |
| 13 | 1,137,501 – 1,225,000 | €1,408 | 1,365,001-1,470,001 | €1,535 |
| 14 | 1,225,001 – 1,312,500 | €1,627 | 1,470,001-1,575,001 | €1,797 |
| 15 | 1,312,501 – 1,400,000 | €1,846 | 1,575,001-1,680,001 | €2,060 |
| 16 | 1,400,001 – 1,487,500 | €2,064 | 1,680,001-1,785,001 | €2,322 |
| 17 | 1,487,501 – 1,575,000 | €2,283 | 1,785,001-1,890,001 | €2,585 |
| 18 | 1,575,001 – 1,662,500 | €2,502 | 1,890,001-1,995,001 | €2,847 |
| 19 | 1,662,501 – 1,750,000 | €2,721 | 1,995,001-2,100,000 | €3,110 |
ILLUSTRATION.
Below is a sample table of Local Property Tax bills (2026–2030) for different property values. This shows both the base charge and the maximum +25% a council could add under the new discretion rules.
| PROPERTY VALUE | BASE LPT (2026-2030) | MAX LPT if a council chooses to apply +25% |
| €250,000 | €235 | €294 |
| €400,000 | €333 | €416 |
| €550,000 | €523 | €654 |
| €900,000 | €808 | €1,010 |
| €1,300,000 | €1,242 | €1,552 |
| €2,200,000 | €3,542 | €4,428 |
Implications of Upcoming November LPT Changes.
1. Everyone Pays More – Regardless.
Even though the government widened valuation bands to prevent households from moving up, base charges rise by 5–6% for nearly all homes. The Finance Minister mentioned that homes will only pay “between €5 and €25 extra a year” . This may seem insignificant, but this is for the first year only.
Over the five-year cycle to 2030, I believe homeowners will pay significantly more. This gradual rise is designed to be less noticeable, but it’s still a broad-based tax increase. By presenting it as stability, my take is that the government is trying to normalise (I hate this word) regular hikes; while also quietly locking in a higher minimum tax for all property owners across Ireland.
2. Bigger Burden on High-Value Properties.
Homes worth more than €1.26 million face stepped taxation, with extra rates on the value above that threshold. For properties over €2.1 million, tax is applied to the full market value, not just band midpoints (meaning 1.26m will be taxed at 0.0906%, the next part up to 2.1m will be taxed at 0.25%, and anything above 2.1m will be taxed at 0.3%).
Even for me, this looks like progressive taxation (maybe because I’m broke). But in practice, it heavily impacts urban areas like Dublin, Cork, and Wicklow where prices are highest.
Families who bought a long time ago but now live in highly appreciated properties will be affected by this. The net effect is a wealth tax in disguise, with certain areas carrying a disproportionate share of the overall LPT increase.
3. Local Council Ability to Apply +25%.
Your local council will soon be able to raise LPT bills by up to 25% above the base charge. If you ask me, this is an opportunity for the state to shift responsibility for unpopular increases onto local councils, while still earning more revenue. But hey, what do I know?
For homeowners, this could create huge uncertainty as a €500 bill could rise to €625 overnight depending on local decisions. As shown from previous 5-year reevaluations, this will continue to make property taxation less predictable, as homeowners will continue to remain exposed to regular political choices made within their local authority.
4. Regional Tax Inequality Continues to Increase.
To be honest, I feel this is as fair as you can get but I digress.
Since councils have wider discretion, the same type of home could be taxed very differently across counties – as has always been the case. For example, a €400k property in one county might pay €333 annually, while in another it could be pushed to over €416 with the +25% adjustment.
This creates eircode inequality, where LPT depends more on where you live than on your property’s true value. Rural or cash-strapped councils may feel pressured to raise LPT to fund local services, while wealthier areas might lower it to appeal to voters.
5. Deferral Is Not Relief.
While income thresholds for LPT deferrals increase significantly (up 30–40%), this is not tax forgiveness; it’s a postponement. Deferred amounts still accumulate and must eventually be paid.
This creates hidden debt for lower-income households, especially pensioners and those on fixed incomes. Although it is marketed as support, deferral may simply delay financial pressure rather than remove it.
6. Regular Increases Snuck In.
As seen before, the valuation period is fixed at five years (2026–2030, 2021-2025, 2017-2021 etc), but property price growth is expected to continue. Each revaluation cycle essentially resets the minimum payment to a higher charge, meaning homeowners will always face tax rises in the future.
The government will frame this as fairness and consistency (I know I would), but it locks taxpayers into systematic increases every five years. Even if bands widen again, the midpoint adjustments will push charges higher.
Over a few decades, this will steadily raise LPT as a reliable revenue stream for local authorities while creating a permanent upward trajectory in household taxation. And this is regardless of the changes in personal income or circumstances.
7. Psychological Reframing.
The Finance Minister frames the changes as small, manageable increases compared to the larger jumps that would have happened without intervention (…”will pay between €5 and €25 extra a year.”).
This conditions the average homeowner to feel “relieved” at modest rises, even though everyone pays more. By softening the perception of tax hikes, the state normalises small, regular increases and reduces political backlash. (Classic case of reframing; from “your tax is going up” to “your tax could have gone up much more.)”
Who Should Watch Closely?
- Owners of homes near band thresholds – small valuation differences could push you into a higher band despite band widening.
- Dublin & Commuter Town homeowners – higher property values + councils likely to raise LPT could lead to compounded increases.
- Pensioners and fixed-income households – deferral is possible, but it only builds future debt.
Conclusion.
The upcoming changes to Local Property Tax are presented as modest and fair, but the detail tells a slightly different story in my opinion.
While most households will see only small immediate increases, the structure guarantees that everyone pays more; with local councils now empowered to add even further through the new +25% discretion.
But While the changes bring higher costs overall, there might still be a few positives for homeowners:
- Fairer weighting – High-value properties shoulder more, easing pressure on modest homes.
- Band protection – 96% of homes remain in their current band due to the 20% widening.
- Deferral support – Higher income thresholds mean more households can postpone payment if needed.
- Local benefit – Assuming that money collected truly stays with local councils, this would help improve local services – e.g, Co. Meath‘s continuous improvement as a national planning benchmark.
