It’s a scary time of the year for property owners with local property tax due and new bands being set for the next five years.
Last year, 1.5 million property owners had a 97 per cent compliance rate on the local property tax (LPT) of some two million properties. The tax generated a net figure of €573 million.
With valuation bands changing and being determined for the next five years, owners need to give consideration to what their homes are worth in today’s market.
The valuation is based on the market value of the property as of November 1st, 2025. A return on the monies owed has to be paid by November 7th. Local property tax is a self-assessed tax.
To help determine their liability, property owners are counselled to look at the Property Price Register (PPR) and to cite similar styles of homes in similar condition in their area that have sold recently as examples.
Consider the age, size, condition, number of bedrooms, and any unique features, says Louise Whelan, operations manager of local property tax at Revenue.
“This is only a guide. In an estate, for example, where there may be three and four-bedroom homes, an average value will be taken.”
She counsels owners to go onto the portals and use similar style properties listed for sale there as examples, in addition to reviewing listings on the PPR.
While you are not required to submit documentation to support your valuation to Revenue, you should keep a copy of any information sources and supporting documentation that you use to determine the value of your property. Revenue may request this from you in the event of a review of your self-assessment of your property’s value.
Once you have a valuation, look at which of the 19 bands it falls into and the associated tax charge. These are listed here on Revenue.ie
If your property is in Band 12 or above, valued at anywhere from €1.26 million to €2.1 million, LPT is assessed at 0.25 per cent on any value above the €1.26 million threshold.
Revenue is not encouraging people to get their properties professionally valued, but owners of properties worth more than €2.1 million are required to provide a specific valuation, rather than one within a band.
Any value above €2.1 million is taxed at 0.3 per cent.
Brian Dempsey, partner at DNG estate agents. suggests you print off any examples that you find on the register or the portals, so that, should there be any discrepancies in the future, you have physical proof of listings and concluded sales.
Whelan concurs. “Keep it for your records. We will take that as proof of how you came to estimate the market value of the property.”
This makes perfect sense in our cities and towns, where there will likely be several examples of similar properties to the one you own. Outside town areas can be more difficult.
If there hasn’t been a recent sale, say in the last two years or so, with house prices still rising, you will also need to adjust the most recent price for a similar property in today’s market. The residential property price index, published monthly by the Central Statistics Office, is a useful guide to use when figuring out any such adjustments.
Or, referencing the CSO data, you could adjust the valuation you put on the property back in November 2021 to take into account the price increases in your area over that period.
Revenue’s interactive valuation tool may also help indicate the average valuation band for properties in your area. However, if your home is bigger or smaller than the average in your location, you will need to adjust.
The tool cannot provide a specific market value for any individual property, Revenue advises.
The definition of residential property means that it is in use as a dwelling, suitable for use, Whelan explains.
If you’ve just purchased a property and it is not in this condition, for example, it is uninhabitable, you can apply to Revenue to see if you are eligible for an exemption.
It’s something those undertaking deep renovations might also consider. That is, if the level of renovations requires you to have to move out of the home.
“If someone is living in the property, LPT 100 per cent applies,” Whelan says.
She says that you will need to support this application with photographs of the property, shots that demonstrate its condition, as well as a signed contract with the builder that details the scope of works and how long they’re going to take, along with any other documentation that demonstrates that you are undertaking construction.
Technically, an exemption sounds like a great idea until you do the maths and factor in the level of scrutiny required to get the free pass inked by Revenue.
Such a move also means that you will be flagging the fact that the property is undergoing significant upgrades and may be worth significantly more afterwards. This may mean it then falls into a much higher band.
You will need to get confirmation from revenue before you can assume that you are exempt. With just days to go to the self-assessment date, this may not be possible.
And as for those who are non-compliant, what happens to them? “It is important to note that a charge is on the property, not on the person,” Whelan says. If buying, it’s important that the property be clear of any outstanding arrears, that you get a nil balance notification from Revenue before the is a transfer of ownership. “At the point of transfer, LPT has to be settled.”
In the meantime, interest is charged at eight per cent and possible penalties at significantly higher rates.
It may even result in a surcharge on capital gains tax or corporate tax, she adds.
For more on how best to value and submit your return, visit revenue.ie
