Millionaire homes worth over €1million are set to be hit with increased property taxes.
The decision by Government to be announced this week will see levies on posh homes worth over €1.75million hit with an increased annual tax of 0.3%, bringing the annual bill to €5,250 a year per home at that level.
Millionaire properties’ rates will see increased levies right down to homes worth up to €1.05million, which will now be taxed at the higher rate of 0.25%, up from 0.18%.
A senior source in the Coalition said this represents the “progressive taxation” that this Government wants to push forward.
This brings a whole new range of homes that were worth a million quid into the 0.25% loop.
This will see thousands of rich homeowners in Dublin and other cities and towns where prices are traditionally higher hit with higher bills.
For instance, somebody with a home worth a million quid under the old regime would have paid €1,800 - now they will be caught for €2,500 a year.
The Irish Mirror has had sight of the increased levies for mansion owners which will formally be announced by Minister for Finance, Paschal Donohoe on Wednesday morning.
It comes at the same time as the Government will unveil plans to include homes that were built after 2013 in the LPT (Local Property Tax) net for the first time.
This could bring as many as 100,000 new people with homes into the tax net.
And it will also coincide with LPT tax hikes for many people in lower brackets because there has not been a proper review done in years.
Early estimates suggest that a limited number of ordinary homeowners could see a tax hike in the region of €100 a year as a result of this.
The change in tax bands will result in the Government pulling in an estimated €560million a year, up from the current haul of €480million a year.
A senior Government source told the Mirror that “under the new band, we will see high value properties see an increase in the tax that they pay.”
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