Have you sorted out your 2018 Property Tax yet?
The ‘liability date’ is coming up.
If you own a home in the Republic of Ireland, you have to pay Local Property Tax (LPT) on it every year - whether you live in the home or not.
How much do I owe for Local Property Tax?
What you pay depends on the market value of the property.
For properties up to €1 million, valuation bands apply, and your LPT charge will be 0.18% of the midpoint of whichever valuation band your home falls in to.
So, for example, if your house/apartment is valued at €340,000, you would fall into the €300,001 - €350,000 band. The midpoint of this band is €325,000, so your annual charge would be (€325,000 x 0.18%) = €585.
Further information on the bands is available on the Revenue website, and you can calculate how much you owe for your 2018 property tax with their online calculator.
How does Revenue know the value of my property?
Back in 2013 when the LPT came into effect, owners of eligible properties had to self-assess the value of their homes.
You don’t need to worry about submitting a new valuation for your property every year - the value that was declared for your property in 2013 applies until 1 November 2019. After this, you’ll have to submit a new valuation for LPT purposes.
How do I pay the Local Property Tax?
You can choose to pay your LPT:
- in one single payment by cash, cheque, credit/debit card or postal order;
- in a series of equal instalments by Direct Debit; or
- by arranging for the payment to be deducted from your salary/pension at source.
If you normally pay your LPT by Direct Debit - or salary/pension deduction - this will continue on again for 2018, and you don’t need to take any action.
However, if you paid your LPT in one lump sum this year, you will need to confirm your payment method again for 2018.
You can do this online on the Local Property Tax site - your property will have a PIN assigned to it that will be on any communications you have on the LPT. If you don’t have this PIN, you can enter your PPSN and have one sent to you.
When do I have to pay my LPT?
If you own a residential property on 1 November this year, you are liable to pay the LPT for next year for that property.
Payments start in January, and the dates differ depending on how you want to pay, so make sure you confirm your payment method and are aware of the dates that the payments are due.
I’m renting my home, do I have to pay Local Property Tax?
If your lease is for less than 20 years, your landlord has to pay the LPT. However, if you have a lease that’s for more than 20 years, a life tenancy, or you live somewhere rent-free on a long-term basis with no challenge to your right to live there, you will be liable for the LPT.