Local Property Tax (LPT) in Ireland

If you own property in Ireland, you’ve likely heard of the Local Property Tax (LPT). Introduced in 2013, the LPT is a self-assessed annual tax charged on the market value of residential properties. Whether you’re a first-time buyer, an investor with multiple properties, or someone looking to sell, understanding how property tax in Ireland works is essential.

In this blog, we’ll cover:

• What Local Property Tax (LPT) is
• How property values are assessed
• Current LPT rates in Ireland
• Who has to pay and when
• How to pay your LPT
• Exemptions and deferrals
• Key updates to LPT since 2022

What is Local Property Tax (LPT)?

The Local Property Tax (LPT) is a yearly tax paid by residential property owners in Ireland. It applies to:

• Houses
• Apartments
• Holiday homes
• Rental properties

The tax is collected by Revenue, and funds are redistributed to support local authorities, helping finance services like housing, roads, libraries, and community development.

How is Property Value Assessed for LPT?

Unlike stamp duty or capital gains tax, the Local Property Tax is based on the market value of your property on a specific valuation date.

• The current valuation period runs from 1 November 2021 to 31 October 2025.
• Homeowners must self-assess their property’s market value within the Revenue’s valuation bands.
• Once set, this valuation remains fixed until the next valuation date, even if property prices change.

Local Property Tax Rates in Ireland

LPT rates are structured in valuation bands, with each band covering a range of property values.

• Properties fall into 19 different bands based on their valuation
• Each band has a fixed basic rate of LPT.
• For properties worth over €1.75 million, LPT is calculated using a different formula which is explained below.

Local authorities can also adjust the basic rate by +/-15%, known as the Local Adjustment Factor. This means your LPT can vary depending on where your property is located.

The current rates are as follows;

How LPT Is Calculated for Properties Worth Over €1.75m

If your property is valued above €1.75 million, the Local Property Tax (LPT) is calculated using a three-tier system:

1. First €1,050,000 → taxed at 0.1029%
2. From €1,050,000 up to €1,750,000 → taxed at 0.25%
3. Anything above €1,750,000 → taxed at 0.30%

Who Pays Local Property Tax?

The LPT is payable by:

• Owners of residential properties
• Landlords (for rental properties)
• Beneficial owners if a property is held in trust
• Local authorities or housing bodies (for social housing)

Even if a property is vacant, the owner is usually still liable for LPT unless exempt.

When is LPT Due in 2025?

For most homeowners:

• The annual charge applies for the full calendar year (January–December).
• Payments can be made as a lump sum or in instalments through salary deductions, pensions, or direct debits.
• Key deadline: 1 November is typically when Revenue issues LPT notices and payment options must be confirmed.

How to Pay LPT in Ireland

Revenue offers several ways to pay your Local Property Tax:

1. Single Payment – via debit/credit card, bank transfer, or cheque.
2. Direct Debit – monthly deductions from your bank account.
3. Deduction at Source – from salary, pension, or certain social welfare payments.
4. Service Providers – payments can also be made through An Post, Payzone, or Omnivend terminals.

Managing your LPT online is easy through Revenue’s myAccount.

Exemptions and Deferrals

While most homeowners must pay, there are specific exemptions and deferrals available:

Exemptions

• Properties built and sold for the first time between 2013 and 2021 (exempt until the end of 2021).
• Certain properties certified as having significant structural defects (e.g., pyrite issues).
• Social housing owned by local authorities or approved housing bodies.

Deferrals

Some homeowners can defer payment if:

• Their income falls below certain thresholds.
• They face financial hardship.
  Deferred LPT is not written off - it accrues as a charge against the property until paid.

Key Updates to LPT Since 2022

The 2022 LPT revaluation was the first major update since the tax was introduced. Key changes included:

• Bringing newly built homes into the LPT system.
• Adjusting the valuation bands to reflect rising property prices.
• Continuing the power of local councils to vary the basic rate by up to 15%.

Why is LPT Important for Homeowners?

Ignoring or under-declaring your Local Property Tax can lead to:

• Penalties and interest charges from Revenue.
• Difficulties selling or transferring property (LPT clearance is required).
• Additional enforcement measures.

Being compliant not only avoids penalties but ensures you can manage your property affairs smoothly.

Final Thoughts

The Local Property Tax in Ireland is a key responsibility for every homeowner. While it may feel like just another bill, LPT supports essential local services that directly benefit communities across the country.

If you’re unsure about your LPT band or need guidance, you can:

• Check your valuation on Revenue’s online LPT portal.
• Seek advice from a tax advisor.

Staying on top of LPT deadlines, exemptions, and valuation bands ensures you avoid penalties and manage your property tax effectively.