Local Property Tax - what you need to do for 2022 23 September 2021

The Minister for Finance, Paschal Donohoe TD has published the Heads of the Finance (Local Property Tax) (Amendment) Bill 2021 following approval from Government at the Cabinet meeting. The Bill will give effect to a package of measures in line with the Programme for Government to address the future of the Local Property Tax.

LPT is an annual charge on all residential properties in Ireland which came into effect in 2013. The amount paid is based on a self-assessed value of the property in 2013 with the valuations set into 20 LPT bands. 

Since its introduction in 2013 there have been no changes in LPT rates or the valuation of properties for LPT purposes notwithstanding the significant increases in property values over the last 8 years. The revaluations intended to take place in November 2016 were postponed to 2019 without change before being pushed out again in 2020 in response to the COVID-19 Emergency. 

Under the proposed changes to the regime the majority of homeowners are likely to see no change or a decrease in the amount they pay in Local Property Tax (LPT). Where increases arise, the majority will be by a single band (€90), notwithstanding significant increases in property values since 2013.

The rate of the tax is to be cut and the bands will be widened to make the changes affordable and to maintain the overall structure of the LPT.

Overview

Your property is liable for Local Property Tax (LPT) for 2022 if it is a residential property on the valuation date of 1 November 2021.

LPT is a self-assessed tax. This means that you need to self-assess the value of your property at 1 November 2021. The valuation of your property on this date will determine the amount of LPT you pay for 2022 and for the three years from 2023 to 2025.

Revenue has provided an interactive tool and information on this website to help you determine the value of your property and meet your LPT obligations.

How to check if you are liable for LPT for 2022

If you are the owner of a residential property on 1 November 2021, then you are liable for LPT for 2022 for that property. You are liable for LPT even if you do not usually live in the property.

Your property may not have been liable for LPT for the previous valuation period from 2013 to 2021, for example, if your house was built after 2013. However, your property becomes liable for LPT for the next valuation period from 2022 to 2025, as long as it is a residential property on 1 November 2021. 

You are still liable for LPT for 2022 even if you sell the property after 1 November 2021. More information on who is considered liable for LPT has been provided on this website.

What you need to do for 2022

To meet your LPT obligations for 2022, you need to do three things:

• determine the market value of your property at 1 November 2021
• submit your LPT Return, including your valuation, by 7 November 2021

• and

• pay or make arrangements to pay your LPT charge for 2022.

Revenue will issue you with a letter (through MyAccount, Revenue Online Service (ROS) or the post) in advance of the valuation date of 1 November 2021. Your Property ID and PIN will be included, and these are also shown on any previous LPT correspondence you may have received from Revenue.

The letter will:

• confirm your online LPT record for 2022 is available

• and

• give you information on submitting your LPT Return and payment.

The easiest way to submit your LPT Return and pay your LPT charge is online. You can use your existing login details for myAccount or Revenue Online Service (ROS). Alternatively, you can log in directly to the LPT online service. To login, you will need your:

• Property ID
• PIN

• and

• Personal Public Service Number (PPSN) or Tax Reference Number.

If you have not used the LPT online service for previous years, Revenue will issue you with a paper Form LPT1 - LPT Return along with a covering letter.

Even if your property is eligible for an exemption, you are still required to value your property and submit your valuation to Revenue in your LPT Return and claim the exemption in the Return.

For more information see.

https://www.revenue.ie/en/property/local-property-tax/index.aspx