Q. I’m a new homeowner and never had to pay property tax before. What exactly is it and how do I pay it? Is any possibility of deferring it?
Local Property Tax (LPT) is an annual tax charged on residential properties in Ireland. In terms of paying, if you already pay LPT by a recurring method, such as direct debit, this automatically continues for 2025 unless you change it. Recurring methods include deductions from your salary, pension, or social protection payment.
If you pay with a method that does not automatically repeat, the deadline for notification of payment has already passed, so you should contact Revenue if arrangements haven’t already been made.
Calculating LPT
The LPT you pay is based on the market value of the property on the valuation date, November 1, 2021, which continues to apply for until 2025.
If you are making an LPT return for the property for the first time, you must assess the value of your home using Revenue’s online valuation tool, the Residential Property Price Register, or using information sources about local property values, such as newspapers, local estate agents, or property sales websites (Daft, MyHome.ie, or Geowox), or you can choose to have your property professionally valued
When you have worked out the value of your property, you must submit this to Revenue with your LPT return.
Exemptions and deferrals
Some properties are exempt from LPT. If your property is exempt, you still need to assess its value and submit an LPT return. In certain circumstances, you can defer paying some or all of your LPT until a later date.
You may qualify for a deferral if: your income is below a certain amount; you are the personal representative of a deceased person who was liable for LPT; you have a debt settlement arrangement or personal insolvency arrangement; paying would cause you too much financial hardship.
If you meet the deferral requirements, you can choose to defer the LPT until your financial circumstances improve or the property is sold. However, this does not mean that you are exempt from the LPT. Interest is charged on the deferred amount, and the deferred amount remains a charge on the property. If you qualify for partial deferral, you can defer 50 per cent of your LPT and pay the other 50 per cent.
