Government announces €696m in Local Property Tax Allocations to Local Authorities for 2025

Minister Darragh O’Brien today announced €696m in 2025 Local Property Tax (LPT) allocations to Local Authorities to carry out the integral role they play in the delivery of services.

Every local authority receives a minimum (’baseline’) amount of funding from the Local Property Tax, supplemented by funding from the exchequer where a local authority’s LPT income is lower than its baseline.

For 2025, the estimated LPT yield of €552m will be supplemented by €144m equalisation support from the Exchequer.

This baseline funding recognises the essential role played by local authorities in delivering a broad range of services day-to-day.

Following a review, there was a €75.4m increase in baseline funding in 2024 and this higher baseline will remain in place in 2025.

“Local Authorities play a vital role in the delivery of services to our citizens,” Minister O’Brien TD, said.

“Following the conclusion of a working group set up to conduct a review of baseline funding, this Government increased the LPT baseline by more than €75m in 2024.

“These changes are being carried over to 2025, and should go some way to easing the pressures on the sector.

“Following the recent local elections, new councils now have important decisions to make in the coming months regarding the level of local property tax in their areas, all of which will effect expenditure on local services.”

The Minister of  State for Local Government and Planning, Alan Dillon TD, also  welcomed the announcement. Minister Dillon said:

“As the Minister with responsibility for Local Government, I recognise that local authorities are on the front line providing important resources and amenities to their communities.

“I am pleased that the significant increases in LPT allocations for2024, will continue into 2025 and know they will assist the sector in the key role it fulfils in delivering for local communities.”

Every local authority is entitled to receive a minimum amount of funding from the local retention of LPT – known as baseline funding.

Equalisation is the process that ensures that all LPT allocations are funded up to this baseline.

The baseline is made up of a combination of LPT yield and, where necessary, funding from the Exchequer.

It is important that all local authorities receive at least this baseline level of funding to help ensure they can deliver adequate levels of service, as there are variances across the country in terms of LPT yield.

As well as assisting local authorities to meet the costs of providing essential services, LPT allocations enable a level of flexibility and discretion for each authority to address local resource demands.