Dáil Éireann Debate, Tuesday - 21 April 2026
243. Deputy Barry Ward asked the Tánaiste and Minister for Finance his views on the whether the local property tax is equitable given that it is based on property value rather than income; if he is concerned that it is overburdensome on people that live in high value properties with comparatively low income; and if he will make a statement on the matter. [11988/26]
Amharc ar fhreagraLocal Property Tax (LPT) was legislated for in the Finance (Local Property Tax) Act 2012. The design of LPT was considered by an interdepartmental group, which as part of their terms of reference, were asked to “consider the design of a property tax to replace the household charge and that is equitable and is informed by previous work and international experience.”
In considering the equity of a property tax, the report of the group noted that owners of more valuable properties would pay more under a market value-based tax. The report noted this was equitable to the extent that market value provides a measure of the value of a residential property to the owner, particularly in terms of its proximity to places of work and local amenities and facilities.
Furthermore, in 2019, an interdepartmental also conducted a review of LPT. Their 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. It also noted that taxes that are based on incomes tend to bring about behavioural change. In contrast, property taxes apply to a base that is largely immovable and broadens the tax base.
There are provisions in place to support homeowners that have difficulty in meeting their LPT liabilities.
A person can defer LPT if they meet certain income thresholds. The income threshold to qualify for a full deferral is €25,000 for a single person and €40,000 for a couple. To qualify for a partial deferral, the income threshold is €40,000 for a single person and €55,000 for a couple. Homeowners can also avail of a wide range of flexible payment options, including phased payment arrangements.
For these reasons, it is appropriate for LPT to be calculated on the basis of property value rather than income.
