Irish Government Approves Changes to Local Property Tax

The Irish government has approved changes to the Local Property Tax (LPT) aimed at preventing a significant tax increase for most homeowners amid rising property values. The adjustments will keep approximately 96% of homeowners in their current valuation bands, despite the scheduled 2023 revaluation. A new base rate of 0.0906% will be instituted, down from 0.1029%, with properties valued at €525,000 or lower seeing only minor increases. The decision comes as Finance Minister Paschal Donohoe reported that without these changes, around 70% of properties would have moved up at least one band, leading to higher taxes. Local authorities will also have the option to increase LPT rates by up to 25%. This legislation marks a significant shift in how property taxes are assessed and paid in Ireland, striving to balance revenue needs with homeowner affordability.