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Revealed: the real winners and losers in property tax shake-up

Some homeowners paying the most will see bills rise again


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Tens of thousands of homeowners are caught in a ‘property tax trap’ that will see them face even bigger bills after Revenue revaluations.

The biggest property tax shake-up in eight years is currently taking place and there will be winners and losers.

An analysis of Revenue figures by the Irish Independent reveals exactly where the increased tax bills are most likely to hit.

Some of those already paying the highest property tax rates in the country will see their bills rise again.

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

Many others will escape a tax hike under the revaluation process despite soaring house prices. Elsewhere thousands will see a decrease in their bills - particularly around the border.

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

Now those homeowners affected will pay another €90 a year in property tax bills.

Cork city and county are also being hit, making up one in ten of the increases nationally.

In Dublin City, where the average tax bill is €405, one in six homes will see their tax bill rise.

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

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

In the southside Dublin area, one in eight houses are getting a cut because their value held better during the crash.

But half that number will also see their costs increase and the average tax bill is still going to be €585.

Revenue estimates nine out of ten homeowners across the country will pay the same as they have for the last eight years.

The figures are based on the flat tax bill before the local council applies any reduction for homeowners. Councils can bring the property tax bills in their areas up or down by 15pc. But these decisions are taken on an annual basis, so there is no guarantee it will roll over.

As a result of the loss of income in the pandemic, a number of councils had to increase property tax bills or do away with the reduction in bills.

The merging of the three lowest property tax band into one valuation of all houses worth under €200,000 is benefiting significant numbers of houses in some rural counties. Aside from Monaghan, Cavan and Donegal seeing over a third of homes getting a decrease down to the lowest rate of €90, three in 10 homeowners in Sligo and Leitrim will also benefit.

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

House prices rose on average by 75 over the past eight years, due to the recovery from the economic crash and the shortage of supply. But the property tax bands are being adjusted to take account of these changes and protect most homeowners from rises in their property tax bills for the next five years.

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