Revealed: the real winners and losers of the property tax overhaul


Tens of thousands of homeowners are caught in a “property tax trap” that will see them face even bigger bills after the income is reassessed.

he biggest property tax overhaul in eight years is underway and there will be winners and losers.

An analysis of the Irish Independent’s income figures reveals exactly where rising tax bills are most likely to hit.

Some of those who already pay the highest property tax rates in the country will see their bills go up again.

Four of the five houses whose bills will rise are based in Dublin and the counties of Meath, Kildare and Wicklow.

Many more will escape a tax hike as part of the reassessment process despite soaring house prices. Elsewhere, thousands of people will see their bills go down, especially around the border.

Dublin, Cork and the suburban countries have the highest property tax bills in the country.

From now on, affected owners will pay an additional € 90 per year in property tax bills.

The city and County of Cork are also affected, accounting for an increase in ten nationwide.

In the city of Dublin, where the average tax bill is € 405, one in six households will see their tax bill increase.

But in Monaghan, Donegal and Cavan, well over a third of homes will pay less next year.

Dún Laoghaire, the communal area with the most expensive houses in the country, is the outlier in Dublin.

In the southern Dublin region, one in eight homes suffers a cut because its value held up better in the crash.

But half of that number will also see its costs increase and the average tax bill will still be € 585.

Incomes estimates that nine in ten homeowners across the country will pay the same price as in the past eight years.

The figures are based on the flat tax bill before the local council applies any reduction for homeowners. Councils can increase or decrease property tax bills in their areas by 15pc. But these decisions are made on an annual basis, so there is no guarantee that they will be repeated.

Due to the loss of income due to the pandemic, a number of municipalities have had to increase property tax bills or remove the reduction in bills.

Merging the three lowest property tax brackets into a single assessment of all houses valued under € 200,000 benefits a significant number of houses in some rural counties. Aside from Monaghan, Cavan and Donegal, more than a third of homes benefiting from a drop to the lowest rate of € 90, three in 10 homeowners in Sligo and Leitrim will also benefit.

100,000 new properties will pay property tax for the first time because they have been built since 2013 or have been exempt for various reasons.

House prices have risen an average of 75% over the past eight years, due to the recovery from the economic crash and the shortage of supply. But property tax brackets are adjusted to reflect these changes and protect most homeowners from increases in their property tax bills for the next five years.

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