Barry Ward (Dún Laoghaire, Fine Gael)
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120. To ask the Minister for Finance further to Parliamentary Question No. 392 of 12 November 2025, if research has been carried out into the creation of an upper limit cap on the cost of local property tax; and if he will make a statement on the matter. [64118/25]

Barry Ward (Dún Laoghaire, Fine Gael)
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121. To ask the Minister for Finance further to Parliamentary Question No. 392 of 12 November 2025, if his Department has carried out estimates on the cost to the Exchequer of implementing an upper limit cap on the cost of local property tax; and if he will make a statement on the matter. [64119/25]

Barry Ward (Dún Laoghaire, Fine Gael)
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122. To ask the Minister for Finance further to Parliamentary Question No. 392 of 12 November 2025, his views on the merits of putting in place an upper limit cap on the cost of local property tax to avoid putting undue financial burden on families and individuals; and if he will make a statement on the matter. [64120/25]

Simon Harris (Wicklow, Fine Gael)
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I propose to take Questions Nos. 120, 121 and 122 together.

Local Property Tax (LPT) was legislated for in 2012 in the Finance (Local Property Tax) Act 2012. The design of LPT was considered by an interdepartmental group chaired by Dr. Don Thornhill. In 2015, Dr. Thornhill also produced a review of the operation of the LPT. The tax was subject to another review in 2019 by an interdepartmental group chaired by the Department of Finance.

The potential impact of an upper limit cap on the cost of LPT, and an estimated cost to the Exchequer of this, was not examined as part of these reports.

The 2019 report noted that when viewed as a capital tax, property tax can be considered progressive since capital tends to be more heavily concentrated in the hands of higher income earners. If an upper limit cap on LPT were to be introduced, it would likely mean that many higher income earners would benefit from such a proposal. An upper limit cap on LPT would also lead to distortions resulting from a disconnection between property values and LPT liabilities. This would raise concerns regarding the equity and fairness of LPT.

Earlier this year, officials in Revenue’s Statistics Branch conducted an extensive modelling and valuation exercise in respect of LPT liable properties for the valuation period 2026-2030. A paper outlining the process was published in September and is available on Revenue’s website: www.revenue.ie/en/corporate/documents/research/property-valuation-technical-paper-2026.pdf

This paper estimated that properties in band 10 or higher – properties with a valuation of at least €1,050,000 – account for approximately 2% of all properties liable for LPT and 13% of the total projected yield from LPT. In that context, introducing an upper limit cap on LPT could lead to a significant reduction in the revenue raised to pay for local services.

As outlined in my response to Parliamentary Question No. 392 of 12 November 2025, there are provisions in place to support people who have difficulty in meeting their LPT liabilities, including a wide range of flexible payment options and a system of deferrals for those who meet certain criteria regarding income.

The full range of payment options, which includes phased arrangements, are available to property owners on the Revenue website at: www.revenue.ie/en/property/local-property-tax/paying-your-lpt/index.aspx.

The current system of supports allows for a tax base that is broad an equitable while also providing help for households that need assistance. Introducing an upper limit cap on the cost of LPT could, in my view, be regressive, create distortions and reduce the level of revenue raised to pay for local services.

For these reasons, I do not intend to introduce an upper limit cap on the cost of LPT at this time.