Homeowners facing property tax hike to 'highest ever level' in Cork city

Homeowners across the city are facing a hike in their local property tax (LPT) to the highest level ever recorded in Cork city.

At a meeting of council on Monday evening, councillors voted to approve a rate of LPT 15% higher than the baseline tax set by the national government, up from the previous rate of 12%, which was increased from 9% in 2024.

It comes as Cork City Council recorded a revenue deficit for the first time in several years last year, of -€1,592,569.

City council chief executive Valerie O’Sullivan proposed an increase to 20%.

Last year, new legislation was passed allowing local authorities to increase the LPT rate by up to 25% above the basic rate – previously, 15% was the maximum increase.

An increase to at least 17% was needed to cover the costs of requests made by city councillors for work in their local areas, while 20% would provide additional income of nearly €2.5m that could be used for footpath repairs, traffic calming measures, playgrounds, and hosting Fleadh Ceoil na hÉireann, she said.

The 20% rate would mean people would have to pay €32.40 more a year if their home was worth between €350,000 and €437,000, and €46 more if their home was worth between €525,000 and €612,000.

However, Fianna Fáil’s Seán Martin, the head of the council’s finance committee, said that councillors would not agree to more than 15%.

Fine Gael’s Des Cahill added that some other councils in Ireland decrease the national rate and give people money off their LPT, and added that 15% was already the highest rate ever seen in the city.

The four Sinn Féin councillors, as well as Independent Ireland’s Noel O’Flynn, Workers Party’s Jerrica Struthers and Independent Albert Deasy, voted against any increase.

Sinn Féin’s Joe Lynch said he acknowledged the challenging financial position the council was in, but added that the key to addressing that was for the parties in government to properly fund local government.” 

Ms O’Sullivan asked: “What are we meant to do in the meantime?” 

All other councillors voted in favour of increasing the LPT variation to 15%, and to set it at this rate for three years.

However, Ms O’Sullivan said that this vote did not preclude the executive from raising the matter again next year when more funding would be needed, saying: “You can reject it, but there comes a time when you must make a connection between what you’d like to do, and how it’s going to be.”