Irish News - Local Property Tax to Increase in 2026, Confirms Minister Donohoe

Minister for Finance Paschal Donohoe has confirmed that the Local Property Tax (LPT) will rise from 2026, though he assured that increases will be limited for the vast majority of homeowners.

Speaking after presenting a memo to Cabinet, Mr Donohoe said that most property owners will see annual increases of between €5 and €25, with changes set to take effect after a property revaluation on 1 November 2025.

The increase comes in response to a national average property price rise of 23% since the last revaluation in 2021, according to the Central Statistics Office (CSO).

"Every property owner will be asked to pay at least a small amount more in property tax from 2026 onwards," said Mr Donohoe.

Key Changes to the LPT

Valuation bands will be widened to reflect recent property price growth, helping ensure most households stay in the same band.
The base LPT rate will also be adjusted.
Without these changes, up to 70% of homes would have moved into a higher band, resulting in significantly higher bills.
With the changes, 97% of properties will remain in their current bands.

Homes valued under €525,000 are expected to face modest annual increases of €5–€25, while homes over that value will pay more.

The changes are expected to yield an additional €45 million in revenue for local authorities.

Energy VAT Rate to Remain at 9%

Mr Donohoe also confirmed that the VAT rate on electricity and gas will remain at 9% until 31 October 2025, avoiding a scheduled hike to 13.5% in May.

"This is in recognition of the impact that energy prices are still having on people," he said, adding that the extension would cost the Exchequer €70–€80 million.