Deferring payment of the Local Property Tax

Introduction

In certain circumstances, you can delay paying some or all of your Local Property Tax (LPT) until a later date. This is known as a deferral.

You may qualify for a deferral if:

If you meet the deferral criteria 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% of your LPT and pay the other 50%.

Deferral of LPT based on income

You may qualify for full or partial deferral of LPT for a property you own and live in if your income is below a certain amount.

You qualify for deferral each year based on your estimated gross income for the previous year. So, for example, if you were liable for LPT on 1 November 2021 (the liability date) you would assess your estimated gross income for 2021 to see whether you qualify for deferral or partial deferral of the payment in 2022.

If you have an outstanding mortgage, the income threshold is increased by 80% of your gross mortgage interest payments. You must be paying the mortgage to qualify for deferral of LPT. The mortgage must have been taken out before 1 November 2020. You cannot avail of this deferral if you have taken out your mortgage since 1 November 2020.

For LPT paid up to 2021, the income thresholds were €15,000 for a single person or €30,000 for a couple. Income thresholds for partial deferral were €25,000 for a single person or €35,000 for a couple.

For LPT due in 2022 the income thresholds for deferral were increased.

Income thresholds for full and partial (50%) deferral of LPT liability
Liable person (owner-occupiers only) To qualify for a full deferral your gross income must not exceed To qualify for a partial (50%) deferral your gross income must not exceed
Single, no mortgage €18,000 €30,000
Couple, no mortgage €30,000 €42,000
Single, with mortgage €18,000 + 80% of gross mortgage interest €30,000 + 80% of gross mortgage interest
Couple, with mortgage €30,000 + 80% of gross mortgage interest €42,000 + 80% of gross mortgage interest

Gross income is your income before any deductions, allowances or reliefs. It includes income that is exempt from income tax and income from Department of Social Protection (DSP) payments, but it does not include Child Benefit.

Couples include married people, people in a civil partnership and certain cohabitants. For LPT deferral purposes, cohabitants must have lived together for at least 2 years if you have children and 5 years if you do not have children.

If you claimed a deferral for a year and your circumstances change you must inform Revenue.

Deferral following a death

If one member of a couple who qualified for a deferral dies, the deferral will remain in place until the next valuation date (currently 1 November 2025) and the income of the surviving person is not taken into account until then.

On 1 November 2025, the surviving person may make a claim for deferral of the tax. If you satisfy the conditions, you will qualify for deferral. If you do not qualify for deferral after 2025, the amount that was deferred up to the end of 2025 may continue to be deferred. Interest will continue to be charged on the deferred amount in the usual way.

If you inherit a property from someone who is not your spouse, civil partner or cohabitant, Revenue may allow the deferral to continue if you apply for a deferral and qualify. The transfer of the property to you means that the tax deferred (plus interest) becomes payable at that point if you do not meet the conditions for a deferral in your own right.

Deferral for personal representatives of a deceased liable person

When a person dies, their property passes to their personal representative. The personal representative then has the duty to distribute the deceased person's money and property in accordance with the will or with the laws of intestacy if there is no will.

The personal representatives of a deceased person may apply for a deferral of LPT until the earlier of either:

  • The date on which the property is transferred or sold
  • 3 years after the date of death

To qualify for deferral, the deceased person must have been the sole owner of the property.

You can claim a deferral for any LPT outstanding at the date of death, any LPT already deferred by the deceased person and LPT that became payable following the death.

Deferral based on personal insolvency

If you have entered into a Debt Settlement Arrangement or a Personal Insolvency Arrangement, you can apply for a deferral of LPT while the insolvency arrangement is in place. You must have formally agreed your insolvency arrangement with the Insolvency Service of Ireland and your Insolvency Case Number must be included with your application.

You will have to pay the deferred LPT, including accrued interest, when the insolvency arrangement ends.

Deferral based on hardship

You can claim a deferral if:

  • You have had an unexpected and unavoidable significant loss or expense and
  • As a result, you are unable to pay LPT without too much financial hardship

You must disclose your financial circumstances and any other information required by Revenue.

Examples of the type of losses or expenses that may be considered include:

  • Emergency medical expenses
  • Major repairs that are unexpectedly needed to keep your house habitable
  • Expenses due to a serious accident or the death of a family member
  • The loss of your job
  • A bad debt you incur if you are self-employed

Interest rates

Any deferred amounts have interest charged on them at a rate of 4% a year. The previous deferral interest rate of 4% applied up to 31 December 2021. The rate of interest charged on all deferred amounts from 1 January 2022 is 3% per year.

How to apply

To apply for a deferral or partial deferral on the basis of your income you use the LPT1 form. This is available when you access your LPT record on-line.

To apply for a deferral based on income after you have submitted your LPT return, there is no specific form to use. You apply to Revenue in writing.

If you are applying for a deferral under any of the other categories, you must submit the LPT2 form (pdf), as well as submitting your LPT return online or using the paper form LPT1.

You can access your LPT record on-line using your Property ID, Property PIN and PPSN or tax reference number to claim a deferral for 2021. Alternatively, if you received an LPT1 form from Revenue, you may complete the LPT1 form and submit this to Revenue.

The deadline to make a Local Property Tax return for 2022 was 10 November 2021.

If you have been allowed a deferral, at any time you can make a payment of all, or some, of the deferred amount. Revenue will credit a partial payment to the oldest period of deferred LPT first.

Further information

Revenue has published Guidelines for Deferral or Part Deferral of Payment of LPT (pdf).

The Revenue Commissioners

Local Property Tax (LPT) Branch

P.O. Box 1
Limerick
Ireland

Tel: +353 (0) 1 738 3626
Page edited: 12 April 2022