Barry Heneghan (Dublin Bay North, Independent)
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259. To ask the Minister for Finance if he will examine the extent to which current house price inflation is increasing local property tax liabilities for homeowners, particularly in areas where rising valuations are placing additional financial pressure on households; if his Department has assessed the impact of these valuation changes on families and older people in constituencies such as Dublin bay north; and if he will make a statement on the matter. [65320/25]

Simon Harris (Wicklow, Fine Gael)
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Earlier this year, officials in Revenue’s Statistics Branch conducted an extensive modelling and valuation exercise in respect of Local Property Tax (LPT) liable properties for the valuation period 2026-2030. The purpose of this work was to inform policy decisions and to provide guidance to taxpayers on the valuation of their properties for the upcoming LPT 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.

As part of this paper, Revenue has produced an estimation of the distribution of the LPT register of properties under the 2026-2030 valuation bands. This is based on the values of properties on the LPT register from 2021 and then rolled forward using the Residential Property Price Index (RPPI) compiled by the Central Statistics Office: www.cso.ie/en/statistics/prices/residentialpropertypriceindex/.

RPPI data show that the estimated growth in prices was approximately 21% for the Dublin region for the purposes of the Revenue modelling exercise.

Earlier this year, Government agreed to a 20% widening of the LPT valuation bands and a reduction in the base rate of LPT, with the result that the majority of properties are estimated to remain in their existing valuation band. While it is not possible to examine the impact of the new structure on specific electoral areas, the Revenue technical paper estimates that 96% of properties located in Dublin City Council's area will remain in their existing band. A small amount of properties (2%) are projected to move up a band, with the same amount projected to drop a band. Following an analysis of the LPT returns filed this month, data will subsequently become available on properties’ LPT liability and band movement as determined by self-assessed returns.

Property owners which remain in their present band will experience a small increase in base LPT liability. For the majority of properties, being those valued at or below €525,000, the increase will be between €5-25 annually. This represents the first increase in base LPT charges since the introduction of the tax in 2013. Accordingly, Government have agreed it is fair to ask property owners to pay a small amount more going forward, with the result of raising approximately €45 million in additional funding for local services.

A small number of properties will move up a band due to significant appreciation in value since 2021. It was not possible to ensure these properties would remain in their current band without consequentially causing many other properties to drop one or more bands. I believe that we have struck an appropriate balance with the charging mechanism for 2026-2030.

The LPT legislation provides for the possibility of deferring the charge to LPT in certain circumstances to assist individuals who may have difficulty paying the tax. A qualifying person may opt to defer, or partially defer, payment of the tax. Where a person qualifies for a full deferral, 100% of the liability can be deferred. Where a person qualifies for partial deferral, then 50% of the liability can be deferred. The balance of 50% of the tax must be paid. The deferred tax remains as a charge on the property and must be paid before a sale or transfer can be completed. Interest is charged at 3% per annum on the deferred amount.

It is also possible to apply for a deferral on the grounds of hardship if a person suffers an unexpected and unavoidable significant loss or expense, as a result of which a person cannot pay their LPT liability without suffering financial hardship. Further information regarding the deferral of LPT is available on the Revenue website at: www.revenue.ie/en/property/local-property-tax/deferral-of-payment/index.aspx.

Following the enactment of the Finance (Local Property Tax and Other Provisions) (Amendment) Act 2025 this July, the income thresholds for deferral of LPT for the upcoming valuation period have increased by between 30% and 40% depending on personal circumstances. This ensures that deferral remains an option for households at greater risk of financial hardship.

Any property owners experiencing financial difficulties can avail of a wide range of flexible payment options both in respect of their LPT liabilities and for any previous years where liabilities remain outstanding. 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.

Finally, property owners experiencing difficulties in meeting their LPT obligations can contact Revenue through MyAccount at www.revenue.ie or by calling the LPT helpline at (01) 7383626 from Monday to Friday, 09.30 to 16.30.