Irish homeowners face a likely rise in their Local Property Tax (LPT) for 2026 as Revenue begins contacting 1.5 million property owners to update property valuations. The new values will determine tax rates for the next five years, meaning the figure homeowners declare this autumn will shape their bills until 2031.
Why Property Tax Is Rising
Revenue’s principal officer for the LPT, Katie Clair, explained that house prices have grown by roughly 25% nationwide since 2021. “If you consider a property worth €200,000 in November 2021, it’s probably valued around €252,000 now,” she said. The increase in home prices pushes many properties into higher valuation bands, raising their annual charges. Still, Clair said most people will see only modest increases because Revenue has widened the valuation bands and reduced the base rate. A Dublin homeowner who paid €195 over the past four years will likely pay €220 in 2026 — a €25 increase.
What Homeowners Must Do Before 7 November
Revenue asks all homeowners to complete three steps before the November deadline: determine the current valuation band of their home, submit their LPT return, and pay or arrange payment. The process, which takes about five minutes online, helps ensure accuracy and compliance. Homeowners who miss the deadline risk penalties or estimated assessments.
Local Councils’ Role in Property Tax
LPT was introduced in 2013 to give Ireland’s 31 local authorities a stable income source. Each council can increase or reduce the tax rate by up to 15% from the national base. This year, more than a third of councils voted to raise their LPT for 2026, while only a few reduced or maintained it. Twenty of the thirty-one councils chose the maximum 15% increase. Three reduced their rate, and another three kept it at the base level. Dún Laoghaire-Rathdown County Council remains the only authority to apply the full 15% reduction. Starting in 2026, councils will gain even more flexibility, with permission to raise rates by as much as 25%.
Carlow County Council’s Example
Carlow County Council approved a 15% LPT increase in July, locking it in for the next four years. Fianna Fáil councillor Fintan Phelan, who proposed the motion, said the extra funds would directly benefit community projects. “We felt the additional funds could be put to good use,” he said. “In practical terms, it’s €9.50 more for 55% of households in Carlow.” Phelan noted that the council has already used previous increases to improve the town’s appearance with flower boxes, murals, and local beautification projects. He added, “People want cleaner streets, more parks, and more businesses. The additional funding helps us deliver on those priorities.”
The Debate: Fairness and Funding
Not everyone supports the rise. Adrienne Wallace, a councillor with People Before Profit, voted against the increase, describing LPT as a “regressive tax” that fails to address local funding shortfalls. “This brings in an additional €620,000, but we’re still millions short across local authorities,” she said. Wallace argued that councils should receive more support from central government instead of “coming after people who are already hard-pressed.” In 2008, councils received €999 million in central funding when no LPT existed. For 2026, the Local Government Fund will provide €744 million, including expected LPT revenue. Phelan acknowledged the funding gap but said councils must be practical. “We have a duty to deliver for our communities. If additional LPT funds help keep towns clean, build parks, and support local jobs, then it’s the right move,” he said.
How Property Value Affects Your LPT
Estate agent Marcus McCormack of DNG McCormack Properties in Carlow said the average homeowner will pay €35 to €40 more next year. “The property market has shifted significantly since 2022,” he noted. “An average home that cost €200,000 two years ago now sells for about €265,000 or €270,000.” A typical three-bed semi in Carlow Town once priced at €240,000 now commands around €320,000 — a 33% increase. Even with the broader tax bands, many households will fall into higher categories and pay slightly more.
How LPT Is Calculated
LPT is based on the self-assessed market value of your property, placed within valuation bands. Here’s a simplified guide:
| Property Value (€) | Approx. Annual LPT (Base Rate) |
|---|---|
| 0 – 200,000 | €90 |
| 200,001 – 262,500 | €225 |
| 262,501 – 350,000 | €315 |
| 350,001 – 437,500 | €405 |
| 437,501 – 525,000 | €495 |
| 525,001 – 612,500 | €585 |
Local councils then adjust these figures by their chosen percentage. Your actual payment depends on your property’s value and your council’s rate.
Where the Money Goes
LPT revenue funds essential local services – road maintenance, parks, waste management, and community projects. Some of the money from wealthier counties, like Dublin and Cork, goes into the Equalisation Fund, which supports less affluent councils. Supporters of the tax say it ensures a steady stream of local funding. Critics argue it adds pressure to households already coping with rising living costs.
How to Revalue Your Property
To revalue your home, check similar properties on Daft.ie or MyHome.ie, use the Residential Property Price Register, or consult a local estate agent. Homeowners should base their self-assessment on market value as of 1 November 2025. Log in to the LPT portal on revenue.ie using your PPSN and property ID to submit your return.
Key Dates to Remember
| Action | Deadline | Details |
|---|---|---|
| Receive Revenue letter | October 2025 | Notification sent to 1.5M homeowners |
| Revalue property | By 7 November 2025 | Estimate current market value |
| Submit LPT return | By 7 November 2025 | File online via revenue.ie |
| Arrange payment | December 2025 | Choose debit, single payment, or salary deduction |
| New rates apply | January 2026 | Valid until 2031 |
What’s Next for Ireland’s Property Tax System
The upcoming rise will likely be modest for most — between €20 and €50 annually — but it renews debate about how Ireland funds its local authorities. Economists have suggested linking LPT adjustments to inflation or regional property trends to avoid sharp changes every few years. Others argue that the state should restore more direct funding to councils rather than rely so heavily on property taxes. As the discussion continues, one thing remains certain: the LPT system will keep evolving as Ireland seeks to balance fairness with fiscal sustainability.
