Local Property Tax (LPT)

Introduction

An annual Local Property Tax (LPT) is charged on residential properties in Ireland.

You are liable for LPT if you own a residential property on 1 November.

The tax you pay is based on the market value of the property on the valuation date. The valuation date for the next LPT payment is 1 November 2021. 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.

You submit your valuation by 7 November and arrange to pay the tax.

Even if you own an exempt property, you must still make a Local Property Tax return to claim an exemption.

You can choose 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.

You can contact the LPT helpline for assistance. Queries can also be sent to Revenue through MyEnquiries.

Changes to Local Property Tax

New laws in 2021 have introduced changes to LPT.

The changes widen the valuation bands and reduce the rate of tax.

The LPT will apply to properties that have been built since the last valuation date of 1 May 2013.The income thresholds for deferrals are increased and the rate of interest is reduced.

Who must pay LPT?

If you own residential property on 1 November, including rental property, you must pay LPT. This is called the liability date.

For 2022 LPT, the liability date is 1 November 2021.

If there is more than one owner you need to agree who will pay the tax, otherwise Revenue can collect it from any of the owners.

In some cases, you must pay the LPT if you are not the owner:

  • If you are a tenant with a long-term lease of more than 20 years or
  • If you have a right to live in the property for life or for more than 20 years or a right to live there ‘to the exclusion of others’

The landlord pays LPT if a property is rented on a normal short-term lease (less than 20 years).

Valuing your property

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 be sold for on the open market on the valuation date.

The next valuation date is 1 November 2021 and you will need to self-assess the value of your property on that date. Revenue will contact you directly with information about what you need to do. You do not need to contact Revenue about the valuation of your property before you get this information.

Revenue will provide interactive tools and information to help you assess the value of your property.

Rates

The Local Property Tax (LPT) is based on market value bands.

Changes have been announced for Local Property Tax due in 2022. These changes widen the bands and lower the tax rate. The new bands and rates are below.

The first band covers all properties worth up to €200,000.

Local Property Tax

Valuation bands and basic rates for valuation period from 2022 to 2025

Valuation band number Valuation band € LPT Charge basic rate €
1 0 – 200,000 90
2 200,001 – 262,500 225
3 262,501 – 350,000 315
4 350,001 – 437,500 405
5 437,501 – 525,000 495
6 525,001 – 612,500 585
7 612,501 – 700,000 675
8 700,001 – 787,500 765
9 787,501 – 875,000 855
10 875,001 – 962,500 945
11 962,501 – 1,050,000 1,035
12 1,050,001 – 1,137,500 1,189
13 1,137,501 – 1,225,000 1,408
14 1,225,001 – 1,312,500 1,627
15 1,312,501 – 1,400,000 1,846
16 1,400,001 – 1,487,500 2,064
17 1,487,501 – 1,575,000 2,283
18 1,575,001 – 1,662,500 2,502
19 1,662,501 – 1,750,000 2,721
Properties worth more than €1.75 million are assessed on the actual value of the property rather than from a valuation band – see below.

Properties worth more than €1.75 million

Properties worth more than €1.75 million are assessed on the actual value of the property rather than from a valuation band.

The LPT charge for these properties is the total of:

  • 0.1029% of the first €1.05 million of market value of the property
  • 0.25% of the portion between €1.05 million and €1.75 million
  • 0.3% of the portion above €1.75 million
Local Property Tax

Valuation bands and basic rates for valuation period from 2013 to 2021

Valuation band number Valuation band € LPT Charge basic rate €
1 0 – 100,000 90
2 100,001 - 150,000 225
3 150,001 - 200,000 315
4 200,001 - 250,000 405
5 250,001 - 300,000 495
6 300,001 - 350,000 585
7 350,001 - 400,000 675
8 400,001 - 450,000 765
9 450,001 - 500,000 855
10 500,001 - 550,000 945
11 550,001 - 600,000 1,035
12 600,001 - 650,000 1,125
13 650,001 - 700,000 1,215
14 700,001 - 750,000 1,305
15 750,001 - 800,000 1,395
16 800,001 - 850,000 1,485
17 850,001 - 900,000 1,575
18 900,001 - 950,000 1,665
19 950,001 - 1,000,000 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.

The local adjustment factor

Local authorities can vary the basic LPT rate on residential properties in their area. These rates can be increased or decreased by up to 15% This is known as the local adjustment factor.

Residential properties of the same value in different local authority areas may pay different amounts of LPT, depending on whether the local authority has applied a local adjustment factor or not.

There is a list of local authority LPT adjustments for 2021 on revenue.ie.

Voluntary deferrals

There is a system of deferral arrangements for some owners. You can read more about deferring payment of the Local Property Tax.

How to apply

Making a return

The next valuation date for LPT is on 1 November 2021. The LPT will apply to properties that have been built since the last valuation date of 1 May 2013.

Revenue will contact you directly about what you need to do before date. You do not need to contact Revenue about the valuation of your property until you get this letter.

LPT returns that were filed in 2013 cover the period up to 2021.

During March 2013, Revenue sent notices to all liable people. This notice advised you of your property tax obligations and explained how to complete your property tax return.

If you own more than one residential property, 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 can authorise another person to file your LPT return for you. You can also call (01) 738 3626 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. 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.

Paying the LPT

Revenue offer a range of methods for paying the tax. You can choose to make one single payment, or you can phase your payments in equal instalments. You can read about how to pay the LPT Revenue offer a range of methods for paying the tax. You can choose to make one single payment, or you can phase your payments in equal instalments. You can read about how to pay the LPT including key LPT dates for 2022.

If you do not pay the LPT Revenue will use a range of collection and enforcement options.

Amending your return

In most cases if you want to amend your submitted return, you can do so online. However, you must apply in writing if you want 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 guidelines to self-correct a valuation.

Complaints

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.

Appeals

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 replace 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 because 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 Tax Appeal Commission.

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.

Where to apply

The Revenue Commissioners

Local Property Tax (LPT) Branch

P.O. Box 1
Limerick
Ireland

Tel: +353 (0) 1 738 3626
Page edited: 14 September 2021