As the local property tax experiences its first overhaul since 2013, what are you likely to pay?
Revenue is about to start contacting 1.4 million homeowners of 1.9 million homes to tell them it’s time to pay local property tax again. Here’s how to find out if you’re responsible, how much it will cost, and how to pay for it.
What are the key dates?
You assess your home on November 1, submit details by November 7 and pay at this point in a lump sum or indicate which other payment option will be used.
The lump sum can be paid until January 12 by cash, check, credit or debit card or until March 21 by direct debit; monthly withdrawals begin on January 15. Payroll deduction also starts in January.
Who should pay?
Almost everyone who owns one or more habitable houses. This includes owner occupiers and owners. Holders of long-term leases can also be held responsible – The tax administration has staff to answer these questions. Some exemptions applied so far but the numbers are small.
I am the owner but I never paid – how come?
The tax was introduced in 2013 and there has been no revaluation since, so properties built since then were exempt. This exemption ends next month.
I have paid every year since 2013: can I just submit the same information again?
No. Due to the evolution of real estate prices since 2013, you are asked to repeat the exercise.
How do I know exactly what my house is worth?
You don’t need to know exactly, but you need to know what range it is in. There are 20 ranges, starting with properties valued between € 1 and € 200,000, € 200,001 and € 262,500, etc. Revenue has an online assessment tool to help you, but you do your own assessment.
What do I have to pay?
There are different prices for each group, from 90 € and rising to a minimum of € 2,830 for a house worth more than € 1,750,000.
Real estate prices have skyrocketed since 2013 – will I have to pay a lot more in taxes?
You would if the existing bands were kept, but they are now being expanded. For example, the rate of € 90 only covered homes up to € 100,000 but will now cover homes up to € 200,000.
The rate of 225 €, which is the national average, applied to housing valued between 100,001 and 150,000 €. Under the new bands, it will cover homes worth € 200,001 to € 262,500.
Could my tax rate drop?
It could. Incomes expect 10% of homes to attract a different rate this time around, and some will have reduced liability. On the flip side, house prices rose almost 160% in some zip codes between 2013 and 2020, which could tip them towards a higher rate, even with a wider valuation range.
What are these “local authority adjustments” that I hear about?
This is what makes property tax a “local” property tax and what complicates an otherwise clear system of brackets and rates.
Local authorities are allowed to vary the fixed base tax rate by plus or minus 15 pc. For the coming year, 22 municipalities have chosen to go above the base rate, some by 15%, others from 5 to 10%; five stick to the base rate and four drop 10 to 15% below.
How do you know how much to add or subtract?
Income has a local property tax calculator on their website. Once you know your rating range, go to the calculator and it will ask you which local authority area you are in and do the math for you.
Where are the four with the decreases?
These are the four local authorities in Dublin – where average house prices are the highest in the country – you win and lose.
I have vacant accommodation, do I have to pay?
You do, unless it’s in an uninhabitable state. There is an online checklist to help assess livability.
What if I haven’t heard from Revenue?
The receipts say that the tax is a legal obligation and that you must do the reassessment even if you are not directly contacted.
What if I don’t pay?
You will be in the minority because there is a compliance rate of over 97pc. The tax authorities say they will find you and start enforcement action.
They have the power to take money from your paycheck or other source income, so it’s hard to escape it.
How much does it earn?
Revenue expects him to earn € 552m off the base rate but that drops to € 538m when local government adjustments are factored in. This is an increase from the 2021 figure, mainly due to the 34 million euros of previously exempt homes put online.
What is the money spent on?
Part is used to finance some of the daily services provided by local authorities, such as planning, fire departments and public lighting. Part is devoted to roads and other capital projects.
Can local authorities keep what they harvest?
The revenues go into a central fund and are repaid again, more or less depending on the contribution of each county in total, but a part is kept as “equalization fund” to supplement the communes with a greater number of properties of. lesser value.
I am using the rating tool on my phone and the instructions hide the details of my rating range. What’s new ?
Problems of the first day. Put your phone in landscape mode and the instructions disappear. Income works there.