An annual Local Property Tax (LPT) charged on all residential properties in the State came into effect in 2013. The LPT is collected by the Revenue Commissioners.
If you own a residential property in the State you are liable for payment of the tax. (This includes local authorities and social housing organisations.) See ‘Who is liable to pay LPT’ below.
Residential property is any building or structure (or part of a building) which is used as, or is suitable for use as, a dwelling and includes grounds of up to one acre. The LPT does not apply to development sites or farmland.
The tax payable is based on the market value of relevant properties. The LPT is a self-assessment tax so you calculate the tax due based on your own assessment of the market value of the property. Revenue does not value properties for LPT purposes but provides guidance on how to value your property – see ‘Valuing your property’ below.
Revenue offers a range of methods for paying the tax. You can opt to make one single payment or you can phase your payments in equal instalments. Read about how to pay your LPT. You can log in to the LPT On-line system to view your Local Property Tax record and to pay any arrears (using your PPSN, Property ID and PIN). You can also access LPT through Revenue's myAccount and ROS services.
The Local Property Tax (LPT) replaced the Household Charge which was abolished from 1 January 2013. Household Charge arrears that were not paid by 1 July 2013 were converted into LPT and are now collected by Revenue through the LPT system. The Non-Principal Private Residence (NPPR) charge on second homes applied for 2013 and should be paid to the relevant local authority. From 2014 onwards, the NPPR is no longer charged, but outstanding liabilities and payments will still be collected.
All owners of residential property, including rental properties, are liable to pay the tax. The following groups are also liable for LPT:
Joint owners: If there is more than one owner they need to agree who will make the LPT return and pay the tax. If no one pays the tax Revenue can collect the Revenue Estimate of the LPT liability from any of the owners.
Rental properties: Where the residential property is rented on a normal short-term lease (less than 20 years), the landlord will be liable for LPT. Long-term leases (more than 20 years), life tenancies and situations where a person occupies a residential property on a rent-free basis over an extended period and without challenge to their right of occupation will be treated as if the occupant owns the property. In these circumstances, the occupant will be liable for LPT.
You are a liable person for the Local Property Tax if you own a residential property on the liability (or ownership) date. The liability date was 1 May 2013 for the year 2013. From 2014 on, the liability date is always 1 November in the preceding year.
For 2017 the liability date is 1 November 2016.
If a residential property is suitable for use as a dwelling but is unoccupied, it is liable for LPT. However, if the property is not suitable for use as a dwelling, it is not liable for LPT and you do not need to make an LPT return. If you think that your property is not suitable for use as a dwelling and it is not being lived in, you must notify Revenue as soon as possible after receiving your LPT return. You must also include relevant supporting documentation, for example, an engineer’s report. Revenue will consider your claim and make a decision using the documentation you provide.
If a property is a residential property on the liability date in any year (since 2013) it is a relevant residential property and is chargeable to LPT. Certain properties are exempt from LPT. You can find out more in our document on Exemptions from Local Property Tax.
Note that, even if you own an exempt property, you must still make a return to claim an exemption.
The tax is based on the chargeable value of a residential property on the valuation date. The chargeable value is defined as the market value that the property could reasonably be expected to fetch in sale on the open market on the valuation date. The valuation date is 1 May 2013. This valuation applies until 1 November 2019. This means that the valuation of your property for LPT purposes on 1 May 2013 will stay the same until 2019 (even if you make improvements to your property).
A property adapted to make it suitable for occupation by a person with a disability (where the adaptation work resulted in an increase in the value of the property) can qualify for a reduction in the market value of the property for LPT purposes. There was a requirement for this work to have been grant-aided by a local authority but this no longer applies. You can read Revenue's Guidelines on Local Property Tax Relief for Disabled/Incapacitated Individuals (pdf).
Valuation was by self-assessment in 2013. Revenue developed an online guide providing indicative property values. This guide helps you to value your property by providing average indicative values for different property types in your local area. You can check the register of residential property sales, published by the Property Services Regulatory Authority (PSRA), propertypriceregister.ie, when considering the value of your property.
If you follow Revenue’s guidance honestly, Revenue will accept your self-assessed property valuation. Revenue’s valuation guidance is intended to help property owners but each property owner must consider the specifics of their own property when working out its value. Revenue may query your valuation if it has reason to believe your property has been under-valued.
You do not have to include documentation when submitting your LPT Return. However you should keep copies of the information sources when valuing your property in case Revenue queries your valuation. These might include the property section of your local newspaper, information on the sales price of a similar house sold in the area, information downloaded from property websites or details taken from Revenue’s valuation guidance.
The Revenue Commissioners can legally enter a residential property for the purpose of ascertaining its chargeable value. You must permit a person authorised by the Revenue Commissioners to inspect the property if they consider this necessary.
If you did not submit a Local Property Tax return with your self-assessment of the LPT payable, the Revenue Estimate becomes due and payable. The Revenue Estimate is automatically displaced when you submit a return with your self-assessment of the amount of LPT due.
You are liable for LPT if you own a property on the liability date. The liability date for 2013 was 1 May 2013. The liability date for 2014 was 1 November 2013. The liability date for 2015 was 1 November 2014. The liability date for 2016 was 1 November 2015. The liability date for 2017 is 1 November 2016. The actual charge payable on the property is based on its value on the valuation date (1 May 2013). The next valuation date is 1 November 2019.
For example, if you own a property on 1 November 2016 and subsequently sell it any time before 1 November 2017 you are liable to pay LPT for 2017. This payment should be made before the sale of the property closes.
In most cases a residential property that was exempt on 1 May 2013 continues to be exempt until the next valuation date even where the property is sold or ownership is transferred by way of gift or an inheritance. In these cases the exemption automatically carries over to the new owner of the property. There is one exception to this. Second-hand properties purchased between 1 January 2013 and 31 December 2013 are exempt until the end of 2019 if used as your sole or main residence. However, where the property is subsequently sold or otherwise transferred to a new owner after 2013 this exemption no longer applies.
The Local Property Tax (LPT) is based on market value bands. The first band covers all properties worth up to €100,000. Bands then go up in multiples of €50,000. If a property is valued at €1 million or lower, the tax is based on the mid-point of the relevant band. For properties valued over €1 million the tax is charged on the balance over €1 million, with no banding applied. The basic LPT rate was set at 0.18% for properties valued under €1 million and 0.25% on the amount of the value over €1 million. From 2015 these basic rates can be increased or decreased by up to 15% (see ‘The local adjustment factor’ below).
|Valuation band, €||Mid-point, €||Standard rate||Standard LPT payment, €|
|0 - 100,000||50,000||0.18%||90|
|100,001 - 150,000||125,000||0.18%||225|
|150,001 - 200,000||175,000||0.18%||315|
|200,001 - 250,000||225,000||0.18%||405|
|250,001 - 300,000||275,000||0.18%||495|
|300,001 - 350,000||325,000||0.18%||585|
|350,001 - 400,000||375,000||0.18%||675|
|400,001 - 450,000||425,000||0.18%||765|
|450,001 - 500,000||475,000||0.18%||855|
|500,001 - 550,000||525,000||0.18%||945|
|550,001 - 600,000||575,000||0.18%||1,035|
|600,001 - 650,000||625,000||0.18%||1,125|
|650,001 - 700,000||675,000||0.18%||1,215|
|700,001 - 750,000||725,000||0.18%||1,305|
|750,001 - 800,000||775,000||0.18%||1,395|
|800,001 - 850,000||825,000||0.18%||1,485|
|850,001 - 900,000||875,000||0.18%||1,575|
|900,001 - 950,000||925,000||0.18%||1,665|
|950,001 - 1,000,000||975,000||0.18%||1,755|
|Properties worth more than €1 million are assessed on the actual value at 0.18% on the first €1 million and 0.25% on the portion above €1 million.|
Revenue has developed an on-line calculator that you can use to work out how much Local Property Tax is payable on your property based on your self-assessed valuation.
From 2015 onwards, local authorities can vary the basic LPT rate on residential properties in their administrative area. The basic rates of LPT are 0.18% and 0.25%. These rates can be increased or decreased by up to 15% (both rates must be adjusted by the same amount). This is referred to as the local adjustment factor.
The introduction of the local adjustment factor means that residential properties of the same value in different local authority areas may pay different amounts of LPT from 2015 on, depending on whether the local authority has applied a local adjustment factor or not.
If a local authority passes a resolution to vary the basic LPT rates of 0.18% and 0.25% for 2017, Revenue must have been notified of the local adjustment factor on or before 30 September 2016. The local authority must also publish a notice of the variation of LPT on its website and in at least one local newspaper. Revenue then adjusts the LPT liability for residential properties within the local authority’s administrative area.
For example, if your house is valued under €100,000, you will have paid €90 LPT in 2016 at the standard rate. If the LPT rate in your local authority area is decreased by 15%, you pay €76 LPT in 2017. You do not need to do anything. Your LPT record was updated in October 2016 to include your 2017 LPT charge and you can confirm your LPT rate for 2017 by accessing your online LPT record using your PPS number, Property ID and PIN. Revenue’s online calculator has been adjusted to include the local adjustment factor where it applies.
You can read more information and examples from Revenue.
|Example 1: Property valued under €1 million
If the market value of my residential property is €230,000, how much tax will I have to pay?
Market value: €230,000
Value band: €200,000 to €250,000
Mid-point of value band: €225,000
Calculation: €225,000 x 0.18% = €405 for a full year
Answer: €405 is the amount you pay.
|Example 2: Property valued over €1 million
If the market value of my residential property is €1,340,000 how much tax will I have to pay?
Market value: €1,340,000
First €1 million: €1,000000 x 0.18% = €1,800
Remaining €340,000 x 0.25% = €850
Calculation: €1,800 + €850 = €2,650 for a full year
Answer: €2,650 is the amount you pay.
There is a system of deferral arrangements for some owners. You can read more about deferrals in our document, Deferring payment of the Local Property Tax.
During March 2013, Revenue sent notices to all liable persons. This notice advised you of your property tax obligations and explained how to complete your property tax return.
If you owned or had a long-term lease on a property on 1 May 2013, you were a liable person and should have submitted your return to Revenue on or before 7 May 2013 (see section ‘Who is liable to pay LPT’ above for further details). If you submitted your return online through the Revenue website you had until 28 May 2013.
If you own more than one residential property or you are obliged to make your tax returns online you must make your return online. (Note that if you have problems making an online return you can get help in your local Revenue office, where computers are available and a Revenue official will help you. Alternatively, you may authorise another person to file your LPT return for you. You can also call 1890 200 255 to pay and file online over the telephone. You will need your property details and details of your bank account or other source from which you want the payment deducted.)
People who own exempt properties must make a return to claim an exemption. Note that if you bought a new property in 2013 or if you bought a property as your main residence in 2013 an exemption from LPT applies until 2019. However, you must still make a return.
In your return, you include your assessment of the valuation of your property by selecting the relevant market value band and choose a payment method. You can also claim a deferral of payment if you are eligible to do so – see ‘Voluntary deferrals’ above.
You can see a sample LPT Return form (pdf).
After submitting your return in 2013 you do not have to submit another one until 1 November 2019. You pay the LPT every year based on the valuation on 1 May 2013.
Revenue offer a range of methods for paying the tax. You can opt to make one single payment or you can phase your payments in equal instalments. You can read about how to pay the LPT in our document 'Paying the Local Property Tax'.
If you opt for payment by instalment, such as direct debit or deduction at source, payment will be spread evenly over the rest of the year.
|Liability date||1 May 2013||1 November 2013||1 November 2014||1 November 2015||1 November 2016|
|Valuation date||1 May 2013||Continues to be 1 May 2013|
|Date by which you must make a paper return||7 May 2013||Returns made in 2013 remain in force except in some very limited circumstances|
Date by which you must make an online return
|28 May 2013|
|Latest date for paying in full by cash, cheque, postal order, credit card or debit card||1 January 2014||7 January 2015||7 January 2016||11 January 2017|
|Date on which you start to pay if you are paying by deduction at source from salary/ pension/certain Government payments or making regular payments to a payment service provider||1 July 2013||1 January 2014||January 2015||January 2016||January 2017|
|Date on which you start to pay if you are paying in instalments by direct debit||15 July 2013||15 January 2014||15 January 2015||15 January 2016||15 January 2017|
|Date on which a bank single debit authority will be debited||21 July 2013||21 March 2014||21 March 2015||21 March 2016||21 March 2017|
In most cases if you wish to amend your submitted return, you can do so online. However you must apply in writing if you wish to amend your valuation downwards. Any amendment must be supported by evidence to explain or prove the need to decrease the value. Appropriate evidence can be in the form of recent sales or advertised house prices in the area, professional valuations or house price surveys for the area. You can find out more in Revenue's Self-Correction Guidelines.
Each return sent out by Revenue includes a notice of the Revenue Estimate of the tax due. If you are a liable person and you do not submit a return, the Revenue Estimate will become payable by default and Revenue will collect the amount due. Revenue can use a range of collection options including:
The Revenue Estimate will automatically be displaced when you submit a return with your self-assessment of the amount of LPT due.
Self-employed people: If you are self-employed and do not make your LPT Return with a self-assessment of your LPT liability, the amount set out in the Revenue Estimate will be collected using normal collection and enforcement options (for example, sheriff, court action or attachment orders). If you fail to pay your LPT, Revenue will not issue you with a tax clearance certificate. In addition, a self-employed person who fails to submit his or her LPT return on time may incur an LPT-generated surcharge when filing their income tax return, regardless of whether the income tax return is submitted on time.
If Revenue does not collect the amount of LPT due, for whatever reason, then a charge will be put on your property. You will not be able to sell it without paying the tax together with interest and, where appropriate, penalties.
You can get more information on Failure to meet LPT obligations from Revenue.
You can contact the Office of the Ombudsman if you are unhappy about the way in which Revenue has handled any aspect of your tax affairs. The Ombudsman's staff examine complaints about the administrative actions of government departments and offices, including Revenue.
In general, because LPT is a self-assessed tax, formal appeals only arise in a small number of situations.
If you do not agree with a Revenue Estimate you can displace it by submitting a return with your own self-assessment.
Since Revenue has compiled a register of residential properties from various sources there may be errors about ownership of some properties. If you got a LPT Return form and you do not consider yourself a liable person for that property you should notify Revenue in writing within 30 days of receiving the letter. You should include an explanation of why you do not consider yourself a liable person, the details of the person you think is the liable person (name, address and PPS Number) and supporting documentation. It is very important that you contact Revenue since if the error is not corrected you are liable to pay the tax. Revenue will use the information you supply to make a determination on whether you are a liable person. If you do not agree you can appeal this determination to the Appeal Commissioners.
If you disagree with Revenue on other matters (for example, whether the property is residential, the valuation or whether you can defer payment) and the matter cannot be resolved, Revenue will issue a formal Notice of Assessment or a formal decision on the matter to you. Your right to appeal to the Appeal Commissioners will be set out clearly on the notices. However you must make a return and pay any tax due before you can appeal the Notice of assessment or any other Revenue decision.
In January 2012, the Government established an Inter-Departmental Group on Property Tax. This Group considered the design of a property tax to replace the Household Charge. You can read the Report of the Inter-Departmental Group ‘Design of local property tax’ (pdf). The legislation governing the tax is Finance (Local Property Tax) Act 2012 as amended by the Finance (Local Property Tax) (Amendment) Act 2013 and consolidated in the Finance (Local Property Tax) Act 2012 (as amended).
During March 2013 Revenue wrote to residential property owners – see ‘Who is liable to pay LPT’ below. This letter included an LPT Return form for completion, an explanatory booklet and a Revenue Estimate of LPT liability. The Revenue Estimate of LPT liability is not a valuation of a property nor should it be regarded as an accurate calculation of LPT liability. It is simply the amount that Revenue will collect from property owners if they do not submit their LPT return.
The explanatory booklet helped you to assess the value of your property – see ‘Valuing your property’ below - work out how much you will have to pay, complete the LPT Return form and decide how pay your LPT. You can read the explanatory booklet on the Revenue website (pdf) and see a sample LPT Return form (pdf).
You should have sent your completed LPT Return form back to Revenue by 7 May 2013 if submitting a paper form or by 28 May 2013 if submitting your return online through revenue.ie. A half-year payment was due in 2013, with a full-year payment due in 2014 and subsequent years.
The valuation of your property for LPT purposes on 1 May 2013 stays the same for 2013, 2014, 2015, 2016 and 2017 (even if you make improvements to your property). The next valuation date is 1 November 2019.
If you have a question relating to this topic you can contact the Citizens Information Phone Service on 0761 07 4000. The Phone Service will operate Monday to Friday, 9am to 6pm during January 2017. You can also visit your local Citizens Information Centre.