The Minister for Finance, Paschal Donohoe presented the Finance (Local Property Tax and Other Provisions) (Amendment) Bill 2025 to Dail Eireann last week. The bill provides changes to the charging structure for Local Property Taxes (LPT) and expands all the charging bands by twenty percent.
LPT charges will increase by five to six percent for homes values under €1.26 million and homes valued between €1.26 million and €2.1 million will see an increase in base charges of seven to fourteen percent.
The principal changes introduced by the Bill were outlined in our previous two Tax Newsletter items on 7 April 2025 and the main changes proposed at this second stage are as follows:
- The Bill as previously published allowed local authorities to vary LPT charges upward by 25 percent from 2026 onwards. The amendment now proposed means a deferral of the introduction of this increase by one year meaning it will take effect from 2027.
- Partial relief on LPT applies to a property which has been adapted for use by a person with a disability. The practice to date on an administrative basis, has meant a reduction of €87,500 in the chargeable value of the relevant adapted property. The amended Bill is proposing a widening of the valuation bands meaning a reduction of €105,000 of the chargeable value of adapted properties where certain conditions are met. This will ensure the administrative practice that has been place since 2021 will be put on a legislative footing.
In the Minister’s opening statement, he noted that the Central Statistics Office (CSO) has indicated that property prices have increased by more than 20 percent nationally since November 2021. The Minister also highlighted that if property revaluation were to proceed in November 2025 without any changes to the bands or rates, around 70 percent of properties would move up by at least one band.
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