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29/07/2021

Will you have to pay more property tax on your home in Donegal?

Council seeks submissions from members of the public on proposals to change the rate

Will you have to pay more property tax on your home in Donegal?

Some big changes are on the way regaarding the Local Property Tax (LPT).

Donegal County Council is inviting submissions from members of the public on proposals to vary the basic rate of Local Property Tax in Donegal in 2022.

It is expected that most homeowners will face no increase when properties are re-valued on November 1, 2021. 

However, properties constructed since 2013, which are currently exempt, will become liable to the charge from 2022.

The Council is keen to hear views and opinions on any proposal to vary the rate of Local Property Tax, and in particular on the potential effects of any variance on households, individuals, businesses, and on Council services.

The Local Property Tax, which came into effect in 2013, is an annual tax charged on residential properties in Ireland. In accordance with the Finance (Local Property Tax) Act 2012 (as amended), a local authority may vary the basic rate of Local Property Tax within its own area by a maximum of +/- 15%.

The government has announced that it intends to make changes to the Local Property Tax (LPT) regime from 2022.

It has been indicated that these changes will affect charges and valuation bands. As part of the review, the rate of the tax will be adjusted and the bands will be widened to make the changes affordable and to maintain the overall structure of the LPT. 


The rate of Local Property Tax in Donegal was increased by 15% for 2020 and was maintained at that rate for 2021. 

The same charges applied in 2021 as applied in 2020. In Donegal, approximately 51% of properties attracted a charge of €103.50, with a further 39% attracting a charge of €258.75. Over 90% of Donegal properties attracted charges in the lowest two valuation bands (Band 1 = €0 to €100,000; Band 2 = €100,001 to €150,000 – based on 2013 valuations).

Donegal County Council’s LPT income for 2021 is €26.8m (around 17% of total income). The money collected under the Local Property Tax contributes towards the cost of providing a range of important local Council services including swimming pools, libraries, theatres, public lighting, road maintenance, housing services, fire services, dealing with illegal dumping and littering, community initiatives, grants to community/voluntary groups, beach management, public conveniences, tourism promotion and economic development initiatives, amongst other things.

An adjustment in the rate of Local Property Tax would have an impact on the Council’s capacity to deliver these services. For instance, if the LPT rate is reduced, then the income available to the Council will be reduced. This in turn will limit the range and extent of services and supports that can be provided in 2022.

Further information, including a list of frequently asked questions, is available on www.donegalcoco.ie

The deadline date for receipt of submissions is July 9, 2021. Submissions should be made in writing, by email to LPT@donegalcoco.ie, or posted to ‘Donegal County Council, LPT Submissions, County House, Lifford, Co. Donegal F93 Y622’.

Feedback from the public will be considered by the elected members of Donegal County Council as part of the decision making process at a meeting in July 2021, when a final decision will be made on setting the rate of Local Property Tax in Donegal for 2022.

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