Deferring payment of the Local Property Tax
You can defer (or partially defer) payment of your Local Property Tax (LPT) if you meet the conditions.
You may qualify for a deferral under one of 4 separate categories:
- Income threshold
- Personal representatives of a deceased liable person
- Personal insolvency
- Hardship grounds
If you meet the deferral criteria you can choose to defer the full 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.
There are partial deferral arrangements. If you meet the partial deferral criteria you can choose to defer 50% of your LPT liability and pay the balance. Interest is charged on the deferred amount and it remains a charge on the property. If you qualify for a partial deferral of LPT you must select a payment method for the remaining 50% of your LPT liability.
You can get further information on deferring payment of LPT on revenue.ie.
Deferral of LPT based on income threshold
To qualify for full or partial deferral for LPT based on the income threshold criteria you must be an owner occupier and your gross annual income from all sources must not exceed certain amounts (see table below).
You qualify for deferral each year based on your estimated gross income for the previous year. So, for example, if you are liable for LPT on 1 November 2021 (the liability date) you should 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 have been increased.
|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 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.
What happens if the liable person dies?
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 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 another person (for example, a parent) the deferral will remain in place until the next liability date (1 November each year). After that date, Revenue may allow the deferral to continue if you apply for a deferral and satisfy the conditions for deferral in your own right. The transfer of the property to you means that the tax deferred to that point plus interest becomes payable at the date of transfer unless you satisfy 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 law, the will - if there is one - or 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.
Other reasons for deferral
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.
The deferred LPT, including accrued interest, will become due 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 excessive 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 when granting a deferral on these grounds include:
- Emergency medical expenses
- Major repairs to a house that are needed to keep the house habitable and that arise unexpectedly
- Expenses connected with a serious accident or death of a family member
- Losing your job
- A bad debt incurred by a self-employed person
Any deferred amounts have interest charged on them at a rate of 4% a year. The current deferral interest rate of 4% will apply up to 31 December 2021. The rate of interest that will be charged on all deferred amounts from 1 January 2022 will be reduced to 3% per year.
How to apply
To apply for a deferral or partial deferral on the basis of the income threshold criteria 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 3 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. You must apply by 10 November 2021. Alternatively, if you received a letter and an LPT1 form from Revenue, you may complete the LPT1 form and submit this to Revenue by 10 November 2021.
If you have been allowed a deferral you can make a payment at any time of all, or some, of the deferred amount. Revenue will credit a partial payment to the oldest period of deferred LPT first.
Where to apply
Revenue has published Guidelines for Deferral or Part Deferral of Payment of LPT (pdf).