An annual Local Property Tax (LPT) charged on all residential properties in the State came into effect in 2013. The LPT is collected by Revenue.
If you own a residential property in the State, you must pay the tax. (This includes local authorities and social housing organisations.) See ‘Who must pay LPT’ below.The Cabinet has agreed that owners of new homes built since 2013 will now have to pay Local Property Tax.It follows a decision taken at a meeting to finalise the new €3.5 billion Economic Recovery Plan.
Another change to have been agreed by the Government will see about 33% of people who already pay property tax having their tax bill increased by around €100 every year.It is estimated that around 3% of home owners will see a bigger increase.Around 60% of property owners will see no increase.
The tax you pay is based on the market value of the property. 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 – see ‘Valuing your property’ below.