The Local Property Tax (LPT) came into effect in 2013, impacting all owners of residential properties in Ireland. The term ‘residential property’ refers to any building or part of building that is used for accommodation. The amount of tax owed is based on the market value of the property and can be paid in one payment or several equal installments.
How much LPT do I owe?
In order to determine the amount of tax owed, you will need to conduct your own assessment of the market value of the property. This is based on the market value of the property on the valuation date. The valuation date was on the 1st of May 2013 and applies until the 1st of November 2019. For example, if you made improvements to your property in 2017, you will only be able to update the market value of your property after 1 November 2019.
When do I pay LPT?
Payment of your LPT is due by the 1st January every year. As with all taxes, there is a deadline that you cannot let slide without incurring the wrath of the Revenue Commissioner. The deadline date for payment by Single Debit Authority (i.e paying it all in one go) is the 21st of March. There are several number of payment options available to you, such as:
- Payments spread throughout the year (normally should have started in January)
- By monthly direct debit from your bank account
- By deduction from your salary, pension or other Government payment
- You can also make regular payments throughout the year by cash/debit card through An Post; by cash/debit card through Payzone outlets or by cash through Omnivend. (Note these transactions will incur handling charges by the service providers).
Do I have to pay LPT?
For property owners, not paying LPT is not an option (without a deferral or exemption) and Revenue are making it clear that they will pursue and apply penalties to those that do not.
More Importantly, if you do not register your property(s) on-line to pay your LPT by the 21st March, Revenue will block any claims for potential tax rebates until you become compliant with the new tax law and register and pay your LPT. Meaning, you will not be able to avail of any potential tax rebates or unclaimed credits due to you in the last four years!
The best advice we at Irish Tax Rebates can give you is to register your property(s) with Revenue and make arrangements to pay your LPT before the deadline passes! Once you have registered, fill out our 60-second tax rebate form and see what tax rebates you are entitled to.