Property Tax Ireland – All You Need to Know

Update – See the Changes to Property Tax in Ireland from 2022

Local Property Tax (LPT)

Well – we had the Household Charge – and that didn’t go down too well but it looks like it was just a practice run before a full blown Property Tax

The Revenue will be taking on the administration of the new Local Property Tax – and they have much greater powers and access to information than the Local Government Management Agency.  It looks like it will not be as easy to avoid paying the Property Tax as it was the Household Charge.

What type of Property will  the Tax be charged on ?

The new Property Tax or LPT is charged on all residential property – which is defined as ”  building or structure which is in use as, or is suitable for use as, a dwelling.” For valuation purposes – it  includes any shed, outhouse, garage , yard, garden or other land, belonging to the building,. Only land up to 1 acre is used for valuation purposes.

How Much Property Tax Will I Have to Pay ?
The amount you pay will depend on the market value of your house – see below for details about Valuation. Take a look at the property tax amounts that will apply for 2013 and 2014.
List of Property Tax Amounts

What about the Household Charge?

The Household Charge will not be payable in 2013 – but don’t think that’s the end of it if you haven’t paid it.  Anyone who still hasn’t paid the Household Charge – will have their arrears  capped at €130 if it is paid to the Local Government Management Agency before 30 April 2013 . After that it will rise to €144. in May and €145 in June.
Once the Revenue build their property database and link it to the Household Charge data – they should be able to work out who didn’t pay the Household Charge.
Any unpaid Household Charge at 1st July 2013 will be increased to  €200 and added on to the new Property Tax. Revenue plan then to recover it along with the property tax – from wages etc if necessary.

Do I Have to Register for the Local Property Tax?

Yes –  the Revenue are in the process of building a national property database – using data from their own systems , the Household Charge, NPPR , and other sources. Unlike the Household Charge fiasco – the Revenue plan to send out personalised property tax returns to all the people they have identified as liable persons in March 2013. The return will show a “Revenue Estimate” of the property tax due. You still have to provide your own self assessed valuation .
If you own the property on May 1st 2012 and the property is not exempt (see list of Property Tax Exemptions) you will be obliged to submit the return to the Revenue.

Who does the Valuation of Your House ?

The owner will self-assess the market value of their property.
Revenue will give an estimate of the tax due and some guidance on how to value your property and information on values in your areas .  You could get a professional valuer to do a valuation – but this could cost as much as the property tax!   People are expected to  check recent sales in their locality on Propertypriceregister.ie. The declared valuation is valid until 2016.
More about Property Tax Valuations

What will happen if I dont send back the Property Tax return ?

Each Property Tax return sent out by the Revenue Commissioners will show  a  ‘Revenue estimate’ of the tax due. If you don’t send back the completed  return, the Revenue estimate will become the amount payable by you.
Revenue will attempt to collect the tax   – either by deduction at source from wages, pension, welfare  etc. The Revenue Commissioners will instruct either the employer, pension provider, Department of Social Protection or the Department of Agriculture, Food and the Marine, as appropriate, to deduct the amount of the Revenue estimate before making payments to the liable person.

What if I get sent a Property Tax return in my name but I do not own the property?

Where a return is sent to  person who is not the liable owner –  they must advise the Revenue Commissioners in writing ,within 30 days of the receipt of the notice  – including  any relevant supporting documentation and details of the correct owner . If you do nothing the property tax will become payable by you

When  Do I Have to Send Back the Property Tax Return ?

Paper based Property Tax returns have to be  submitted to the Revenue Commissioners on or before 7 May 2013.  Online returns have to be done by May 30th 2013.  People with 2 or more properties must do online returns.

How do I make payments of the Local Property Tax ?
The LPT may be paid in full by Bank Single Debit Authority or by Debit/Credit Card.
Payment by installments will also be possible through deduction from wages , occupational pensions, or certain social welfare payments,  direct debit , debit card, credit card or by cash payments. The full amount must be paid by December 31st 2013 if paying by installments.
See full details here of Property Tax Payment Methods

What if I can’t afford to pay the Local Property Tax ?

There are no reductions , waivers , exemptions etc for people on low incomes.
The payment of the LPT can be delayed or deferred if you the house is your sole residence and  your income is below a certain level. Note – Deferral will incur a 4% annual interest rate.  (After 5 years – an LPT charge for 1 year  of €405 will have interest of  €99 added)
You can choose to defer the full amount of LPT if you are single and your gross income is below €15000 a year (€288 a week)
You can choose defer the full amount of LPT if you are part of a couple  and your joint gross income is below €25000 a year (€480 a week)
So the majority of people on social welfare will probably be able to defer the payment.

More details of Property Tax Deferrals here

What happens if I don’t pay the Property Tax ?

Revenue will attempt to collect the tax   – either by deduction at source, attachment orders etc. The Revenue Commissioners will instruct either the employer, pension provider, Department of Social Protection or the Department of Agriculture, Food and the Marine, as appropriate, to deduct the tax. If this is not possible –  the tax and any late payment penalties will accumulate as a charge against the property and will have to be paid before the the sale or transfer of the property can take place. Interest of 8% a year will be added to unpaid tax.

In the case of the self-employed, the Revenue Commissioners will not issue a tax clearance certificate where there is unpaid LPT. Late delivery of an LPT return will be linked to the filing of an income tax return, thus exposing a self-employed taxpayer to the penalty of an income tax surcharge.

What happens if I Undervalue My House ?
Where the Revenue  have reason to believe that the value that has been self-assessed by the liable person does not reflect market value, they may raise an assessment on the liable person for a different amount.  (Not if a professional valuation has been obtained) .  The owner may appeal the revised  Revenue assessment  as long as the  self-assessed amount has been paid. Revenue only expects to initially challenge a small number of values .