It was no surprise to many that a property tax was introduced in today’s Budget. The introduction of the new charge on households had been earmarked for over a year
What other implications had today’s Budget got on property though and what will you pay? MyHome.ie has developed a property tax calculator which will help you determine your annual repayment.
We’ve also summarised other changes below:
- A property tax has been introduced at a rate of 0.18% for properties valued up to €1 million and at a rate of 0.25% for properties valued at over €1 million.
- The tax will be based on the market value as assessed by the owner of the property. You can use MyHome.ie’s Property Tax calculator to get a rough guide of what you will pay. The Revenue Commissioners, who will be collecting the property tax, will also provide a valuation guide to help people make a fair assessment.
- Properties with a value of more than €100,000 will be assessed at the mid-point of the valuation band. So, for example, a property valued between €150,001 and €200,000 will be assessed at 0.18% of €175,000. Properties valued below €100,000 will be assessed at 0.18% of €50,000.
- The rates of 0.18% and 0.25% will not change during the lifetime of the current government.
- Initial valuations will be valid up to and including 2016.
- First time buyers will be exempt from the property tax for four years.
- Anyone who buys a previously unoccupied home will be exempt up until the end of 2016.
- As with the household charge, certain properties will be exempt from the charge. This list has not yet been determined but is likely to include the likes of ghost estates etc, which were also exempt from the household charge.
- A deferral period is also available up until the end of 2017 for those on low incomes.
- Revenue will strictly enforce the new tax and collect any outstanding money owed on the household charge. Arrears on it not paid by July 1st 2013 will be increased to €200.
- From 2014 PRSI will be payable on income generated from wealth, including rental and investment income
- The NPPR or second home charge will be abolished form January 1st 2014.
- Local authorities have the power to vary rates, however, based on their funding needs.
