Local Property Tax

Local Property Tax (LPT) is an annual tax charged on the market value of certain residential properties in the State. The Revenue Commissioners are responsible for the collection and administration of the Tax. The proceeds from LPT are subsequently transferred to the Local Government Fundfor onward distribution to local authorities in accordance with Government policies on funding allocations.

The liability date for LPT is 1 November each year. If you are the liable person for the property on the liability date, then you are required to pay LPT for the following year.

• Further information on the payment of Local Property Tax is available on Revenue’s website at the following link: Revenue Commissioners - Local Property Tax
• Contact details for specific LPT payment queries are available here: Customer Service Contact - Local Property Tax

Certain properties are exempt from Local Property Tax (LPT) if they meet the qualifying conditions. Each LPT exemption has its own specific qualifying conditions.

There were eleven LPT exemptions available for liability years 2013 to 2021. Four of these exemptions have expired and are not available for 2022 to 2025.

The expired exemptions include:

• New or unused property purchased from a builder or developer
• Builders or developers with properties built, but unsold
• Properties in unfinished housing estates
• Property purchased as a home in 2013

Further information on Local Property Tax (LPT) for 2013 to 2021, including details of the relevant exemptions applicable are available on the Revenue website.

For information on the LPT exemptions that are available for 2022 to 2025, such as those properties constructed using defective concrete blocks or properties certified as having pyritic damage, please see the Local Property Tax (LPT) exemptions for 2022 to 2025 section on the Revenue website.

The proceeds from LPT, collected by the Revenue Commissioners are subsequently transferred to the Local Government Fund for onward distribution to local authorities in accordance with Government policies on funding allocations. The overall purpose of the LPT is to provide a stable and sustainable source of funding for local authorities.

Annual LPT allocations provide financial support to individual local authorities allowing them to sustain their continued efforts to achieve balanced budgets. It helps fund important local services such as parks, libraries, leisure amenities, fire and emergency services, maintenance and cleaning of streets and street lighting - all of which benefit citizens directly. The annual LPT allocation supplements local authority income from other sources such as commercial rates, revenue earned from the provision of goods and services and Government grants and subsidies.

Funding allocations are decided in advance of collection, based on estimates of the LPT yield in individual local authority areas for the following liability year. LPT collection statistics are available on Revenue’s website. The Minister for Housing, Local Government and Heritage is responsible for the onward distribution of LPT proceeds to local authorities in accordance with Government policies on funding allocations.

Under the LPT allocation model, every local authority has a minimum level of funding available to it, known as the baseline. There are variances across the country in terms of LPT levels but it is important that all local authorities receive at least this baseline level of funding to help ensure they can deliver adequate levels of service. If an authority’s estimated LPT yield is below its baseline level, it will receive supplementary funding, known as equalisation funding.

In some local authority areas, the LPT retained locally is significantly higher than the baseline. In these areas, the local authority must to spend a portion of that money on local services that would otherwise have been funded by the Exchequer.

Local authorities may vary the rate of LPT in their administrative area by up to 15% of the basic rate of the Tax. The decision to vary must be taken by resolution of the Council. The power to vary LPT rates enables elected members to directly influence the level of LPT income they have to meet their expenditure requirements.

If a local authority decides to vary the LPT basic rate downwards (by up to 15%), the resultant loss in LPT income is reflected in a proportionate reduction in discretionary income for the Council. Likewise, if a local authority decides to vary the rate upwards, there is a proportionate increase in such income.

Detailed information in respect of LPT allocations to local authorities, including a breakdown of the various local adjustment factors implemented by each local authority, is published on an annual basis and is available at the following link:

Annual Local Property Tax allocations to Local Authorities and Local Variation Decisions