Nov 29, 2012

Property Tax Ireland - How Much ?

Property Tax in Ireland is on the way.
If the government and the Revenue can get things sorted - they hope to be collecting the tax from July
It won't be easy - given the poor registration levels for of the Household Charge. Thousands won't bother registering at all - and it will take loads of man hours and letters and money to track down all the homeowners in Ireland.
Eventually though  - if the tax is kept on for ever - when a house is sold it will have to be paid.
But that won't help boost the poor finances of Ireland right now .

How Much Property Tax Will I have to Pay ?

We have a table showing the calculations for a range of house values .

Check out how much property tax will be for you  here

The main problem is going to be how to work out the value of your home.

Revenue have produced an interactive valuation guide  see more about that Property Tax Valuation Map

Owners will be expected to declare the value of their property - but how will they know what it is worth ?
The only reliable source of house prices is the government  property price register . The problem is - that with so few sales - there is not a lot of information to see for many areas Even if there have been sales near you - there is not a scrap of useful information  on the price register that allows you to compare houses .  The register doesn't have any info about the house type (detached , bungalow, apartment, terraced)  or the number of bedrooms . So - no valid comparison can really be made.
It will just be guesswork - with most people probably going for a low value.
I can see thousands of people just declaring the value as low as €50,000 just to pay the minimum charge.

Self assessment is just a way to avoid doing the job properly. Another hashed attempt at pleasing the IMF - which will result in a mess.

Property Tax In Ireland - Calculator

The implementation of a Property Tax in Ireland should be complete by July 2013.

The amount of Property Tax you pay will depend on the market value of your house.

Who decides what your house is worth ?  You do !

PropertyTax Map
Property Tax Valuation Map
The government haven't got the time or the money to send staff around all the houses in the country to value them - so they expect home owners to do it themselves .  They have provided an online  map based tool that shows average values  - you can read more about the  Revenue Valuation Map Here

How will home owners work out how much their house is worth?

If you have recently bought your house - then I suppose the value will be pretty close to what you paid for it . But - for those hundreds of  thousands who bought a house several years ago - or got one built it won't be easy to try and place a figure on the value. The recently launched Property Price Register is the only source of house sale prices available - but it doesn't contain any details of house type (detached/semi) , or numbers of bedrooms - nothing except the sale date and price. In rural areas it will be almost impossible to find house sales to use for comparison.

Owners don't have to be too exact with the valuation - there are ranges or band of values with €50k intervals that they have to decide in which band  to place their house. It does mean that - for example an apartment valued at €45,000 will be charged the same property tax as a house valued at €99,000. ((€90)

It also means that if someone values a house at €199,000 they will pay €315 - but if they value their house at €201,000 - they will pay €90 more. The property tax will increase by €90 for each band under 1million

Find Out Here - Much  More about Property Tax in Ireland

These are the Irish  Property Tax Rates for 2013 calculated using a rate of 0.18% on the mid value of each band.  (0.25% used on portion of value over 1 Million )

Property Tax Calculator How Much Property Tax Will You Have to Pay ?
House Value : From House Value: To Property Tax
€0 €100,000 €90
100,001 150,000 €225
150,001 200,000 315
200,001 250,000 405
250,001 300,000 495
300,001 350,000 585
350,001 400,000 675
400,001 450,000 765
450,001 500,000 855
500,001 550,000 945
550,001 600,000 1035
600,001 650,000 1125
650,001 700,000 1215
700,001 750,000 1305
950,001 1,000,000 1755
On a house Valued at €1.5 Million - the Property Tax will be €1800 plus 0.25% of 500,00 (€1250) giving a total of €3050 House Valued at 2 Million - Property Tax = €4300
The Property Tax is due to take effect from July 2013 - so only 6 months tax will be charged in 2013. The Household charge will be abolished from Jan 2013 and the NPPR is stopping in 2014.

Find out if you can avoid paying the Property TAx  Here Property Tax Exemptions