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Understanding Local Property Tax (LPT) in Ireland: What You Need to Know

If you own property in Ireland, you’ve probably heard about Local Property Tax (LPT). But what exactly is it, and why is it so important—especially for self-employed people and small business owners? Let’s break it down in simple terms.

What is Local Property Tax (LPT)?

LPT is a tax charged on all residential properties in Ireland. It’s collected by Revenue and helps fund local services like roads, parks, and community facilities.

• Who pays it? Anyone who owns a residential property, including houses, apartments, and holiday homes.
• How is it calculated? The amount you pay depends on the market value of your property as of a specific valuation date. You self-assess this value and submit it to Revenue.

Key Dates and Valuations

Every few years, Revenue asks property owners to revalue their property ie. this is a self-assessed tax. The next valuation date is in November 2025, so it’s important to check your property’s current market value and update your records. The 1st November 2025 valuation will determine your LPT charge for the years 2026 to 2030.

Why is LPT Compliance So Important?

If you’re self-employed or run a small business, staying on top of your LPT is crucial. Here’s why this can be a significant and unexpected cost.

• Affects Tax Clearance: Non-compliance can also affect your ability to get tax clearance, which you may need
• A 10% Surcharge: If your LPT isn’t up to date, Revenue can apply a 10% surcharge to your income tax need for grants, contracts, or business loans.

How to Stay Compliant

• Check your property’s value before the November deadline of 07/11/2025.
• Submit your LPT return on time, even if you’re not due to pay right now.
• Keep your payments up to date to avoid penalties.

Valuing your property for LPT doesn’t have to be stressful! Here’s a simple step-by-step guide:

1. Use the Valuation Date
   Revenue sets a specific date for valuing your property (for example, 1 November 2025 for the current LPT period). Use the market value of your property on that date, not today’s value.
2. Check Recent Sales in Your Area
   Look at similar properties in your neighbourhood that sold around the valuation date. Check out the residential property price register for information on other similar properties in your area (www.propertypriceregister.ie) are really helpful for this.
3. Consider Your Property’s Features
   Think about the size, condition, location, and any unique features (like an extension/large garden) that might affect the value. 
4. Use Revenue’s Guidance
   Revenue provides an online LPT valuation tool and guidance maps to help you estimate your property’s value. You can find the online valuation tool and guidance on the Revenue website.
5. Be Honest and Keep Records
   Self-assess your property’s value as accurately as possible. Keep notes and evidence (like sales listings or valuations) in case Revenue asks for proof.

Remember:

• You don’t need a professional valuation unless you’re unsure or your property is very different from others nearby.

How do I calculate my LPT liability?

When you pay Local Property Tax (LPT) in Ireland, the amount is based on your property’s value, which falls into a specific “band.” Each band has a set tax rate.

How LPT Bands Work:

• Properties are grouped into value bands (e.g., €0–€240,000, €240,001–€315,000, etc.). Please note that these bands have been increased, compared to previous bands for previous years.
• You pay the tax rate for the band your property falls into.
• If your property is valued above the highest band, you pay a base amount plus a percentage of the value above that band.

2022–2025 LPT Bands & Rates (for reference):

• The LPT charge for properties with a market value greater than €2.1 million is not calculated from a valuation band. It is based on the market value of the property. The LPT charge for these properties is calculated as the sum of:
• 0.0906% of the first €1.26 million of the declared market value of the property
• 0.25% of the portion of the declared market value between €1.26 million and €2.1 million
• and
• 0.3% of the portion of the declared market value above €2.1 million.

Local Adjustment Factor:

• Your local county council/local authority can adjust the LPT rate up by a maximum of 25% or down by 15%. 
• Revenue’s website has a calculator to help you work it out. Calculate your Local Property Tax

LPT Deferrals

If you’re finding it difficult to pay, you may be eligible to defer your LPT payment. This means you don’t have to pay right now, but the amount will still be owed later.

You may qualify for a deferral if:

• Your gross income is below a certain threshold (e.g. €25,000 for a single person or €40,000 for a couple).
• Marginal relief thresholds have recently been increased, allowing partial deferral for incomes up to €40,000 (single) or €55,000 (couple)
• You’re experiencing financial hardship or have long-term illness expenses.

💡 Important Notes:

• A deferral is not a waiver – you’ll still need to pay the tax eventually.
• Interest may apply to deferred amounts.
• You must apply for a deferral through Revenue and meet the criteria.

Common LPT Exemptions Include:

Properties unoccupied for long periods of time due to illness of the owner

• Properties owned by charities or public bodies and used for charitable purposes may be exempt.
• Long-Term Illness or Disability – If a property is occupied by someone with a permanent, incapacitating disability, and the property was adapted to meet their needs, it may qualify.
• Properties constructed using defective concrete blocks
• Properties fully liable to commercial rates
• Registered Nursing Homes

📌 Important Notes:

• You must claim the exemption through Revenue – it’s not automatic.
• Revenue may request supporting documents (e.g. medical reports, planning permissions, or builder’s certificates).
• Exemptions apply from the valuation date, not the current date.

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Helpful Links

🔗Local Property Tax (LPT)

🔗LPT online help

🔗Calculate your Local Property Tax

🔗Over two million homeowners to get letters from Revenue warning them to revalue homes for property tax | Irish Independent

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