Property tax is being hiked in Dublin - if you own a house here's how much you'll pay next year
Councillors are expected to vote to remove a 15% discount on the tax for the first time in over a decade.
The council's ruling group, comprising Fine Gael, Fianna Fáil, Labour and the Green Party,
agreed after last year's local elections to apply the baseline rate with no discount
this year for the first time.
The
Local Property Tax
(LPT) was introduced in 2013 – at the
behest of the Troika
- and councillors have the power to reduce or increase it by 15% either side of the baseline level; they has consistently voted to keep a reduced rate in recent years.
Dublin City Council management has long argued that the vast majority of homeowners would not be hit with substantial additional charges if councillors agreed to reduce the discount applied.
According to the council, the decision to lift the discount now is expected to bring in up to €16.4m in extra funding for the city, which will be allocated to areas such as improving the council's housing stock, tackling dereliction and improving footpaths.
The cost of property tax is based on the value of a person's home.
Dublin City Council said 75% of eligible households will see an increase of between €18 and €83 per year in their property tax as a result of the vote passing, with the remaining 25% set to pay €523 or higher annually.
For example, those with a home worth
between €240,001 and €315,000
will pay
€235
from next year, an annual increase of €43.75.
Advertisement
Homeowners with a property valued
between €420,001 and €525,000
will pay
€428
in property tax, an increase of €83.75.
Figures released last month revealed that the
average price of a second-hand home in Dublin
is now
€600,047
. Anyone who owns a home worth that amount will see their property tax rise to
€523
a year.
Houses worth
between €1,050,001 and €1,155,000
will have a property tax charge of
€998
, up €194.75 annually.
For anyone with a house valued at
between €1,995,001 and €2,100,000
, annual property tax will cost
€3,110
.
You can find a full list of the property bands and how much each will pay
here
.
'The additional revenue raised by ending the LPT tax cut will go towards improving every aspect of Dublin, from the quality of the footpaths and roads, to the quality of the homes that people are living in,' Green Party group leader Janet Horner said.
'No one should be living in damp, mouldy or cold conditions in our Council housing and the revenue we are raising here takes a meaningful step to end that injustice,' the north inner city councillor said.
Fine Gael group leader Colm O'Rourke said communities across Dublin have consistently and repeatedly called for improvements in a range of local services, 'and it's time those calls were properly answered'.
'These aren't minor issues, they go to the heart of safety, accessibility and local pride. This investment is about listening to residents and delivering meaningful improvements that strengthen communities right across the city,' the Cabra-Glasnevin councillor said.
Property tax for 2026 is owed on 1 November. The
government changed property tax bands
earlier this year to moderate the increase in the amount of tax payable as a result of increasing house prices.
A possible left-leaning ruling coalition on Dublin City council last year including Sinn Féin
fell apart over the question of property tax
. Sinn Féin wanted to continue to apply the 15% property tax discount.
Readers like you are keeping these stories free for everyone...
A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article.
Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation.
Learn More
Support The Journal
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Journal
6 hours ago
- The Journal
New legislation could allow people choose who inherits their estate, say tax group
'CHOSEN RELATIONSHIP' LEGISLATION could allow individuals select one or two heirs to their estate under the same grouping as parent and child, a specialist expert group has told government. The Tax Strategy Group, an expert advisory panel at the Department of Finance, has noted that the point has been made that people who are not related could have 'equally close and meaningful relationships similar to familial relationships'. The tax experts state that there are a number of ways to develop a policy to capture these 'chosen' relationships. 'For instance, legislation could provide for individuals to select one or two heirs to their estate for Group A Threshold,' it states. Currently, Group A deals with the inheritance to a child (including certain foster children) when a parent dies. This threshold was increased in 2024 to €400,000 from a previous value of €335,000. Penalising people with no children However, in the run up to the election, a debate arose around inheritance tax rules favouring parents and penalising someone who is child-free. The net result in this situation, where 'chosen relationships' could be included in this grouping, would be a tax-free threshold, state the experts, however the paper said that this was not possible to cost. 'Therefore, the costings have been calculated on the basis of three separate instances of a tax-free €400,000 threshold for each group. This would create an additional cost to the Exchequer of €390 million based on up-to-date Revenue data,' state the review papers. Advertisement The Programme for Government contains a commitment to maintain a broad tax base of which Capital Acquisitions Tax (CAT or inheritance tax) is one contributory element, state the papers. 'However, it is important to get some sense of the cost of various changes to a particular tax as these are factors which the Minister for Finance must consider when deciding upon his broader budget package. This is particularly relevant this year because of the case being made to expand the scope of Group A to include broader family arrangements,' said the tax experts. Both Fianna Fáil and Fine Gael made a number of pledges in their election manifestos around the expansion on inheritance tax groupings. Fianna Fáil pledged to review the inheritance tax thresholds applicable when the deceased does not have children. The party also said it would increase and adjust the inheritance tax Category A, B and C thresholds in each budget 'to reflect the wider increase in property prices in the Irish economy in recent years'. Meanwhile, Fine Gael will said it would increase Capital Acquisitions Tax thresholds and raise Group A threshold (for children) to €500,000, Group B (for siblings) to €75,000, and Group C (for others) to €50,000, 'building on the progress made in Budget 2025″, it said. The tax review papers directly address whether there is discrimination at play when it comes to the differential tax treatment for direct familial relationships and more distant relationships, stating that this has existed in the Irish legal system since the foundation of the State. 'This is reflected explicitly in the Constitution, most clearly in Article 41. The current CAT legal framework, differentiating between Groups A, B and C takes account of this constitutional framework,' states the review papers, stating that it is the beneficiary of the inheritance or gift and not the person who passes away who has to pay the inheritance tax. 'In this context, it is not clear that there is a case that disponers are being discriminated against. Instead, legal concerns, if any should be viewed from the perspective of those who are liable for the tax i.e. the beneficiary. 'It should be noted that it is not clear that such concerns exist here either, as it is not uncommon for the tax system to tax people in different ways depending on the situation or their circumstances,' states the report. The Department is satisfied that the existing inheritance tax legislation and the taxation benefits are not unconstitutional or otherwise unlawful, states the review. Related Reads Financial advisor: Thinking of retiring? Here are the things to consider... Opinion: Inheritance tax changes in the budget have brought some relief, but not enough Breaking down further costings, the group looked at the cost of giving the same status to aunt, uncle and sibling relationships that currently apply to parental relationships – i.e. equalising Group A and B at a tax-free threshold of €400,000. This would cost the State €305 million based on the most up-to-date Revenue data. 'The likelihood is that in reality the costs of collating Groups A and B would be lower, but in the absence of appropriate data it is not possible to demonstrate this at this time,' it adds. Boosting €3,000 tax-free gift to your child per year The tax papers also looks at the gift threshold that parents are allowed give to their children on a yearly basis. Currently, a parent may give a gift up to the value of €3,000 to a child or anyone else each calendar year without any CAT arising. Two parents can make gifts of €3,000 each to a child, resulting in a gift to the value of €6,000 in any year free of CAT. There is no limit on the number of small gifts a person can receive in a year from different donors. The small gift exemption applies only to gifts and not to inheritances, but if government were to increase the small gift exemption, for example, in the case of giving their child help towards a deposit to buy a house by €1,000 (to €4,000) such a move would cost €0.7 million, states the paper. The cost of increasing it to €5,000 per parent is estimated to be €1.4 million, based on the number of CAT returns filed for 2023. Readers like you are keeping these stories free for everyone... A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation. Learn More Support The Journal
The Journal
11 hours ago
- The Journal
Why Ireland's YIMBYs are having a moment
FOR THE DOZENS of (non political) people who actually read public consultations on Irish infrastructure projects, the recent decision on Ballyboggan came as a shock. The location is planned to be the capital's newest town , with officials planning to deliver 6,000 homes at the site of the Dublin Industrial Estate, which is close to Glasnevin Cemetary and only a short distance from the city centre. 6,000 sounds like a lot, and it is. But under Dublin City Council's proposed plan, much of the development would be limited to four storeys, with just a few above that height. Normally, these heights would be welcomed by locals in most areas of Ireland. Anyone who has read through planning submissions from local residents (if you haven't, what are you doing with your life) would know that there are often protests over new housing developments. Common issues cited are taller buildings blocking out light, too many new homes putting a strain on local services, too much traffic, and so on. But Ballyboggan was different. Not only were most of the submissions in favour of development – they actually called for taller buildings. While there were plenty of articulate submissions, one in particular succinctly sums things up: 'The plan would represent a huge missed opportunity to provide homes for thousands of people at a time of overwhelming demand.' The one line comment cuts to the core of the most important issues for many in Ireland – housing. Unsurprising, given prices have surged a staggering 40% or so over the last five years. The comment also outlines the solution many people want to see implemented: build more homes. As fast as possible, as affordably as possible, in an effort to tackle the country's crippling supply shortage. Their cause is increasingly being championed by Ireland's YIMBY movement – yes in my back yard. It's meant to act as a counterbalance to so-called 'NIMBYs' – not in my back yard. The proposed Ballyboggan development in Dublin. Dublin City Council Dublin City Council YIMBY vs NIMBY The two terms don't just apply to housing – they apply to any kind of new infrastructure development. In recent years, 'NIMBYism' has increasingly become a dirty word in Ireland. Some of this is with good reason. Think of how county councils zone for low-density property development in the middle of a housing supply crisis. Or the role local objections played in upgrading the Luas green line to a metro. Or local residents objecting to new housing developments in emotional, attention-grabbing terms – such as describing a proposed six-storey apartment block as a ' monstrous tower '. There are plenty more examples, which led then-Taoiseach Micheál Martin to agreeing in 2021 that Ireland has a 'culture of Nimbyism' . But there seems to have been some pushback as of late – which is where YIMBYs come in. Their ultimate aim is simple, at least on paper: Get stuff built. The YIMBY movement has its roots in the U.S. – as did its counterpoint, NIMBY (unsurprising, given that they both use the term 'yard'). The term 'YIMBY' has likely existed in some form for decades. But the movement in its current guise took off in San Francisco in the last 10 years or so, as a way to try to tackle the area's affordability crisis. Put simply: surges in house prices are normally attributed to too much demand, and not enough supply. Given there's not much you can do to lower demand in booming economic areas like San Francisco, YIMBYs want more to improve supply by building more homes, ultimately improving housing affordability. Advertisement The movement grew to become more broadly pro-development, generally pushing for the likes of transport and environmental projects. Given Ireland tends to follow the lead of the U.S. in most areas, it was perhaps just a matter of time before YIMBYism took off here. And resentment with NIMBYism had already been bubbling away for years as the housing crisis worsened – as evidenced by Martin's comments back in 2021. But Irish YIMBYism recently received a more definitive push from John and Patrick Collison, the two self-made billionaires from Limerick who co-founded payments processing firm Stripe. With the company's headquarters based in San Francisco, the YIMBY movement seems to have rubbed off on the pair, who have frequently called for more development in Ireland as a way of tackling surging prices. In May 2024, they helped launch 'Progress Ireland', a think tank which focuses on how to address 'housing shortages' and 'poor infrastructure'. Its ideas already seem to be gaining some traction. In February, the government announced it was considering making cabin homes in back gardens exempt from planning rules. Progress Ireland and other YIMBYs have advocated for similar measures, arguing that boosting the supply of 'small houses' could help ease some of the pressure in the property market. The government is now bringing forward other proposals which would be generally cheered by YIMBYs, such as legislation which would extend planning permission which has been challenged by judicial reviews. This relates to many cases for large housing developments, which are often appealed to the courts. A common complaint is that these judicial reviews tie up housing projects for years due to the slow process of cases being resolved in the legal system. There have even been claims that objectors have taken advantage of this, demanding huge sums of money from builders to withdraw legal complaints. This is a view which Housing Minister James Browne appears to subscribe to, as he said judicial reviews 'have been weaponised by some people'. Regardless of whether you think judicial reviews are being used in the spirit of the law or not, the move to extend planning permission timelines again shows a more pro-development attitude from officials which lines up with YIMBYs. Objection rates So between support from the general public, a new voice in the policy debate, and increasingly favourable attitudes in government, it appears things are going fairly well for the YIMBYs. But it's worth keeping in mind that there are still plenty of questions to answer. The first one being – is the problem of NIMBYism really as big a deal as it's made out to be? Housing lecturer Lorcan Sirr has argued that the issue is overstated. Writing for the Irish Times in 2023, he said just 6% of planning permissions granted nationally in 2021 were appealed. This would suggest that objections may not be as big a barrier for housing development as they are made out to be. This is also backed up by the fact that planning permission for tens of thousands of homes are currently unused. Opposition politicians had called for 'use it or lose it' rules to be introduced, due to the suspicion that some developers were applying for planning permission solely to increase land values. But the government's plan for increased time extensions suggests a move in the opposite direction. There is also the argument that increasing supply alone may not be enough to tackle Ireland's housing affordability crisis. As previously examined , it would likely take a decade or two before boosting supply made a real dent in prices. Regardless, many YIMBYs would argue that doing something to impact a positive change, no matter how small, is better than letting problems continue to worsen. And with the government planning to scale up housing delivery from 30,000 to 50,000 homes a year, it's likely new rules will be increasingly pro-development. The progress of legislation which could broadly be classed as pro-YIMBY over the last year looks like a sign of things to come. In short – it's a good time for those who want something built in their back yard. Readers like you are keeping these stories free for everyone... A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation. Learn More Support The Journal
Irish Times
21 hours ago
- Irish Times
Cold reception for hospitality VAT rate
Sir, – Limerick TD and Minister of State at the Department of Justice Niall Collins has said luxury and five-star hotels benefiting from a universal VAT rate reduction to 9 per cent would sit 'very, very uncomfortably with me', drawing a critical response from Fine Gael (' Fine Gael irked by Niall Collins's dismissal of blanket VAT cut for 'price-gouging' hospitality sector , July 24th). Recently, I ordered a glass of Pinot Grigio with my food at an establishment in Kerry. I was charged a whopping €9 for my little indulgence, while my food came to a reasonable €21. My bigger surprise though was what looked like a pub serving food when I walked off the street, was, in fact, a hotel. READ MORE Afterwards, at a traditional old-style pub, not too far away, I asked the bartender how much they charge for a glass of Pinot Grigio? It was €7.20. Fair play to Niall Collins for highlighting once again the madness of applying universal tax reductions across the board. – Yours, etc, TOM McELLIGOTT, Listowel, Co Kerry.
