Domestic rates in Northern Ireland facts for kids

Domestic rates are a type of tax in Northern Ireland that people pay to their local government. Think of it as a payment for living in a home. This tax is based on how much a house or apartment was worth on January 1, 2005.

Domestic rates have two main parts:

• A regional rate which is decided by the Northern Ireland Assembly. This is like the main government for Northern Ireland.
• A district rate which is set by your local council. These are the groups that manage things in your town or area.

The amount of these rates can change each year. A group called Land and Property Services figures out how much properties are worth and handles the tax. Domestic rates are special to Northern Ireland. In other parts of the United Kingdom, they have a different tax called Council Tax.

How Property Value is Figured Out

Land and Property Services is the official group that keeps track of properties and decides their value. For homes, the domestic rates are based on how much the property was worth on January 1, 2005. This is different from taxes on businesses, which are based on how much rent they could get.

What the District Rate Pays For

The district rate is decided by your local council. There are eleven different councils in Northern Ireland, like the eleven district councils. This money helps pay for important services in your local area, such as:

• Collecting and getting rid of your rubbish.
• Fun places like leisure centres and parks.
• Keeping streets clean.

Here's a look at the district rates for different councils in 2019 to 2020:

What the Regional Rate Pays For

The regional rate is set by the Northern Ireland Assembly. This money helps pay for bigger services that affect everyone in Northern Ireland. These include things like:

• Education, which means schools and colleges.
• Health services, like hospitals and doctors.
• Roads, keeping them safe and in good condition.

Help with Paying Rates: Rate Rebate

Sometimes, people might need help paying their domestic rates. If adults of working age in Northern Ireland are receiving Universal Credit, they can apply for something called Rate Rebate. This helps them with the cost of their domestic rates.

Help with Paying Rates: Housing Benefit

There used to be another way to get help with domestic rates, called Housing Benefit & Rate Relief. This was a bit confusing because there was also a different Housing Benefit that helped people pay their rent. Now, the Housing Benefit for rates is mostly for older people (pensioners) and some people who receive a special payment for a severe disability.

How this Housing Benefit was managed depended on whether someone rented their home or owned it.

• If you rented, you would apply to the Northern Ireland Housing Executive. This was true whether you rented from a private person, the Housing Executive itself, or a housing association.
• If you owned your home, you would apply to the Land and Property Services agency.