Local Property Tax (LPT) 2021
Its that time of year again!
Local Property Tax (LPT) is an annual self-assessed tax charged on all residential properties in the State. The tax you pay is based on the market value of the property. Revenue does not value properties for LPT purposes but provides guidance on how to value your property.
Revenue will write to residential property owners enclosing an LPT Return and a detailed guide to Local Property Tax. If you have not received a letter from Revenue this doesn’t mean you are one of the lucky ones and don’t have to pay! You must contact the Revenue. Unfortunately, there is no avoiding the Local Property Tax, unless you qualify for an exemption.
If you have not received a letter and have not paid LPT, it will be spotted later on down the line – i.e. when a property is sold, transferred or inherited.
Important dates for payment of LPT
Valuation Date: the valuation date for property is 1st May 2013 – this is the date used for the market value of your property
Liability Date: the liability date for 2021 is 1st November 2020
- 1st January 2021 – if paying by deduction from salary at source
- 11th January 2021 – if paying by Cash, Cheque, Credit Card or Debit Card
- 15th January 2021 – if paying by instalments by Direct Debit
- 21st March 2021 – Single Debit authority payment deducted
- 15 January 2021 – date on which annual debit authority will be debited
What is my LPT liability for 2021?
The amount of LPT due for 2021 depends on:
- the value of the property
- the LPT rate applied by your local authority for 2021 which is available online on the Revenue website.
Who is liable to pay LPT?
If you own a residential property in the State, including a rental property, you are liable to pay the LPT.
Revenue have set out that the following categories of persons are liable to pay LPT:
- Owners of Irish residential property, this includes people who live abroad and own Irish Residential property. If is more than one owner of the property, the owners will need to agree who will make the relevant LPT return and discharge the tax. If it is not paid, Revenue can proceed to collect the tax due from any of the owners, which includes the default collection method as set out below.
- Landlords who own property which is rented under a short-term lease (for less than 20 years).
- Local authorities or social housing organisations that own and provide social housing.
- Lessees who hold long-term leases of residential property (for 20 years or more).
- Holders of a life-interest in a residential property.
- Persons with a long-term right of residence (for life or for 20 years or more) that entitles them to exclude any other person from the property.
- Personal representatives of a deceased owner (e.g. executor/administrator of an estate).
- Trustees, where a property is held in a trust.
- Where none of the above categories of liable person applies, the person who occupies, or receives rent from, the property is the liable person.
LPT is a self-assessed tax, and if you are liable to pay you must complete and submit the return, calculate the liability and pay any tax due.
Note: LPT is not deductible from rental income when calculating profit for income tax purposes