Plans to increase local property tax in Dublin city confirmed by council ruling group

Plans to increase Local Property Tax (LPT) in Dublin from 2026 have been confirmed by the parties of the prospective ruling coalition on Dublin City Council.

Fine Gael, Fianna Fáil, the Green Party and Labour have agreed to a voting pact which would see an increase in the LPT charge for Dublin city homeowners.

LPT, which is based on the value of a property, has a base rate that can be raised or lowered by 15 per cent by councillors each year. Since the introduction of the tax in 2013, Dublin city councillors have always voted for the maximum discount.

Last year Labour, the Greens and the Social Democrats put forward a motion to charge the full rate. This motion, which was defeated, would have resulted in higher bills for homeowners this year but, the parties said, would have resulted in much improved services for Dubliners.

As part of the new pact the increased charge will not kick in before the general election with councillors of the four parties having a “free vote” on the 2025 LPT charge. The base rate will then be applied “for years 2, 3, 4 and 5 of this council term” according to the agreement published ahead of this evening’s council meeting.

[ Left alliance on Dublin City Council in doubt over local property tax dispute ]

The full 63 member council will meet in City Hall for the first time since the local elections to appoint a new Lord Mayor for Dublin. It is understood that under the voting agreement, Fine Gael and the Green Party will hold the mayoralty for two years each, with Fianna Fáil having one mayor in the five year term.

A rival alliance on the council, involving the Social Democrats and Sinn Féin supported by a number of left-leaning independents will also propose a mayor, but it is not expected they will receive sufficient support and Fine Gael’s James Geoghegan is likely to be voted in as mayor.

The agreement between the ruling group includes commitments to increasing the budget for cleaning and waste services and to ringfence the additional LPT, which could amount to €14.5 million a year, for “housing maintenance, street cleanliness and a new fund for playgrounds”.

The agreement also has an ambition for the council to “expand direct build of public and affordable housing projects on council-owned sites”. It also states that the “Active Travel Network and agreed transport plans will be safeguarded and implemented” which would include the council’s Dublin City Centre Transport Plan and cycle network.