Though paying Local Property Tax (LPT) may not be at the top of anyone’s list of favorite activities, it’s an unavoidable aspect of property ownership. The following blog will give you information to confidently understand and manage your LPT obligations.
What is LPT?
Local Property Tax (LPT) is a self-assessed tax charged on the market value of residential properties in Ireland. Introduced as an annual tax, it applies to all residential properties, including rental properties.
Who is Liable for LPT?
The liability date for LPT is November 1st each year. If you own a residential property on this date, you are liable for LPT for the following year. This includes properties that have been newly built or have become residential after the previous November 1st.
Payment Methods and Deadlines
LPT can be paid in one single payment or in equal instalments over the year. If you used a repeating payment method (like direct debit) in the previous year, this method will continue unless you change it. Important deadlines include:
- December 1, 2023, for spreading payments over the year.
- January 10, 2024, for a single payment.
LPT for Properties Valued Over €1.75 Million
For properties valued over €1.75 million, the LPT is calculated on the actual value, not just a valuation band. This includes a tiered percentage rate applied to different portions of the property’s value.
Local Adjustment Factor
Local authorities in Ireland can adjust the basic LPT rate by up to 15%, either increasing or decreasing it. This means properties of the same value might have different LPT rates in different areas.
Valuation and Self-Assessment
The LPT is a self-assessment tax, meaning you determine the tax due based on your assessment of your property’s market value. The current valuation date for calculating LPT (from 2022 to 2025) is November 1, 2021.
Submitting an LPT Return
You must submit an LPT return if:
- Your property is newly liable for LPT.
- You are claiming an exemption or deferral of LPT payment.
- You have not submitted a return for a previously liable property.
Registration and Online Submission
For properties not previously registered for LPT, owners must first register them with Revenue. LPT returns can be submitted online using the Revenue’s LPT online service. For this, you’ll need a Property ID and PIN, obtainable through LPT correspondence or via the online service.
Conclusion
Understanding and complying with LPT requirements is crucial for property owners in Ireland. With annual updates and varying rates based on property value and location, staying informed ensures you meet your obligations while avoiding penalties.
For more detailed information and assistance, visit Revenue’s official website or consult with a tax professional. Remember, LPT is an ongoing responsibility for property owners in Ireland, and staying proactive is key to managing this aspect of property ownership effectively.
