How much is Local Property Tax (LPT) in Ireland?

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Homeowners in Ireland must pay an annual Local Property Tax (LPT), which is a self-assessed tax based on the property’s value. Many people have questions, such as: “How much is Local Property Tax?”, “How do I calculate my property’s value?”, and “Am I exempt?” This page provides a simple guide to understanding Local Property Tax in Ireland.

Local Property Tax (LPT) is a tax paid by homeowners in Ireland based on the market value of their residential property. All owners of residential properties in Ireland are required to pay the LPT each year, which is collected by Revenue. Importantly, the property must be suitable for use as a dwelling. If it is in any way structurally unsound and unoccupied as a result, you may not be liable.

LPT is self-assessed, meaning you’re responsible for estimating your property’s value and using that to work out the tax you owe. Revenue provides guidance on how to value your property, but they don’t carry out valuations themselves. There are several ways of paying property tax in Ireland, including by debit or credit card, cash, or Direct Debit.

Local Property Tax was first introduced in Ireland in 2013 to provide local authorities with a stable source of funding and to reduce the Government’s reliance on income tax. It replaced the Household Charge, which was a temporary flat-rate charge.

In Ireland, LPT is used to help fund local services and infrastructure, such as waste collection, road maintenance, and community projects. The funds raised total about 7% of local government revenue*, and are used by local authorities to deliver essential services that improve the quality of life for residents.

The information provided here is for informational and educational purposes only and does not constitute financial advice. Please consult with a licensed financial adviser or professional before making any financial decisions. Your financial situation is unique, and the information provided may not be suitable for your specific circumstances. We are not liable for any financial decisions or actions you take based on this information.

If you own a home or rental property in Ireland on 1 November (known as the “liability date”) in any year, you’re responsible for paying Local Property Tax. If a property has multiple owners, you’ll need to agree on who will pay the tax. If no agreement is reached, Revenue can collect the LPT from any of the owners.

Short-term tenants don’t have to pay property tax in Ireland, but you might be liable if:

• You’ve lived in and rented the property for 20 years or more, or

• You have the right to live in the property for life.

Other situations where property tax is payable:

• Executors or administrators of a deceased person’s estate.

• Trustees, when the property is held in trust.

Yes, you generally need to pay Local Property Tax on a second home in Ireland, unless you qualify for an exemption. LPT applies to all residential properties, whether you use them as a second home, holiday home, or rental property.

The number of Local Property Tax exemptions is purposely limited to keep rates low for those who do have to pay. However, there are some specific circumstances where exemptions apply:

• If the owner can’t live in their home for at least 12 months due to serious illness or disability, and the property is empty (or occupied by someone not liable to pay the tax).

• Properties for people with disabilities.

• Homes built with defective concrete blocks or pyritic damage.

• Properties fully taxed under commercial rates.

• Properties owned by charities or public bodies.

• Registered nursing homes.

If any of these situations apply to you, you will still need to claim the property tax exemption and put in a property valuation with Revenue.

In Ireland, there’s no special property tax exemption for pensioners. If they own property, they’ll generally need to pay the Local Property Tax, unless they meet the criteria for one of the exemptions mentioned earlier. However, if a pensioner is struggling financially, they might be able to defer paying the full or partial LPT until their situation improves, or the property is sold. It’s worth pointing out that while the tax is deferred, it’s not waived entirely, and interest will accumulate on the unpaid amount.

Because LPT is a self-assessed tax, you’ll need to tell Revenue the market value of your property. The value isn’t the price you paid when you bought it, but the value it had on 1 November 2021. The reason for this is that property valuations are reviewed every four years, so the current LPT valuation bands will last until 2025, at which point they might be adjusted.

So how exactly do you put a value on your property for that date? There are a few ways to gather the information, and Revenue offers a handy tool to help you out. For the most accurate estimate, focus on properties in your area that are similar in type, size, and age. Here are some steps to guide you:

1. Revenue’s online property valuation guide provides average property values in your area. Because this isn’t specific to a given property, however, you’d still have to consider your property’s unique features and condition to decide if it fits within the suggested LPT valuation band. If you’ve undertaken lots of renovation work, your property might suit a different band.
2. Use the Residential Property Price Register to check recent sales of similar properties in your area. Just remember, for new properties, you’ll need to add 13.5% VAT to the sale price.
3. Hiring a professional valuer can give you an exact estimate, but there will be a fee for this.
4. Read through local newspapers, enquire with estate agents, or check property websites for additional supporting information.

Local Property Tax rates depend on the valuation band your property falls into. The higher the property value, the more you’ll have to pay. 

The table below shows the first ten Local Property Tax bands:

On top of these property tax bands, each local authority in Ireland is free to increase or decrease the LPT charge by up to 15% each year. This is known as the Local Adjustment Factor. To get the right property tax amount for your area, Revenue has a handy calculator. And keep in mind that these rates might be adjusted in 2025.

If you filed an LPT return for the 2022 – 2025 period, you won’t need to submit another return for 2025, but you may need to make sure you pay it.

The following steps show how to pay LPT in Ireland:

1. If your property isn’t registered for stamp duty or LPT, you’ll need to register it with Revenue.
2. To view your LPT record and make payments, log in with your myAccount or ROS details, or directly through the LPT online service.
3. When logging in, you’ll need your Property ID, PIN, and either your PPSN or Tax Reference Number.
4. You can then make payment either in full (for example, with a debit or credit card), or in phased payments by direct debit throughout the year. The property tax payment deadline will depend on the payment method you use.

For further assistance, you can visit the Revenue website or contact their LPT helpline.

If you’re liable for the Local Property Tax but don’t pay it, the tax will become a charge on your property. This means you won’t be able to sell or transfer the property until the amount owed, including any interest, is paid. If you fall behind on payments, Revenue will charge 8% interest per year.

In certain situations, you can delay paying some or all of your Local Property Tax. This is called a deferral, and you will be charged interest of 3% on any deferred amounts. Deferral isn’t the same as exemption, however, and you will eventually have to pay it, plus the interest that has accrued.

• Income-based deferral. You can defer LPT if your income is below certain thresholds. For full deferral, the thresholds are €18,000 for singles and €30,000 for couples. For partial deferral, where half is paid, and the other half deferred, the thresholds are higher.
• Personal insolvency. If you’re in a formal insolvency arrangement, you can defer LPT while it’s in place. The deferred amount must be paid later, including interest.
• Financial hardship. Unexpected financial difficulties, such as a medical emergency, job loss, or major home repairs, may qualify you for deferral if paying would cause significant hardship.
• Following a death. If you’re a personal representative managing a deceased person’s property or have inherited a property, you may qualify for deferral under specific conditions.

Revenue has put together a set of guidelines for applying for deferral or part deferral of LPT in Ireland. 

If you’re looking to save for your Local Property Tax and avoid any unexpected bills down the line, it can be worth comparing savings accounts to make sure you’re getting the best rate possible. Raisin Bank offers a range of high-interest savings accounts from banks across Europe. Simply register for a free Raisin Account and apply for savings accounts online today. There’s no need to fill out a new application each time you apply, and your money is deposit protected from the moment it arrives in your Raisin Account through to when it automatically transfers to and from a partner bank.

*https://www.rte.ie/brainstorm/2024/0708/1458188-ireland-property-taxes-explainer-vacant-homes-residential-zoned-land/