Local Property Tax Changes in Ireland 2025: What Homeowners Need to Know
Jan 20, 2026
Homeowners in Ireland will feel the effects of major changes in the Local Property Tax (LPT) system later in 2025. As property values increase and revaluation is scheduled to take place in November, the government has now implemented changes to ensure that fairness is also given and revenue remains stable.
Whether it is a revised valuation band, rate changes, extended exemptions, as well as deferring options, property owners must know how the changes will impact their annual LPT bills. This is a simple breakdown of what you should expect and prepare.
Why the Change?
- Revaluation of property occurs every four years, with the next revaluation occurring on 1 November 2025, to become effective in 2026.
- Without updates, an estimated amount of 70% of properties would have climbed one or more bands of tax, and LPT bills would have risen dramatically.
What’s Being Updated?
The key reforms to the Local Property Tax (LPT) starting in 2025 will entail broadening of valuation bands, therefore, ensuring that most owners remain in the current tax band despite an increase in the value of property. The fundamental LPT rate is somewhat lower, and defined charges per band are increasing a little (generally only 5 to 25 a year extra per year for the majority).
The value of houses will be paid a little extra under a progressive tiered system through a new system. These changes are aimed at ensuring the fairness and balance of LPT, while also taking into consideration the alterations in the housing market.
Examples: What Homeowners Will Pay
- Under €240k: £95/year (+€5)
- €420k–525k: €428/year (+€23)
- Top Bracket (€1.995–2.1m)
What Homeowners Should Do
- By 1 November 2025, update your valuation that you have assessed yourself by the Revenue online tool.
- Be ready to face a slight annual increment in case your property is below 525k.
- Get deferrals or exemptions eligibility through Revenue.
- Be alert to moves by local authorities after 2027.
Final Thoughts:
The target of the 2025 LPT reforms is fairness and stability: broadening bands, reducing base rates, and limiting most householders to the low €525 rise. Although properties at the higher end would pay a higher price, approximately 96 to 97 per cent of households are expected to remain in their current bands, keeping surprises in their budget to a minimum.
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