A letter from Revenue is on its way to homeowners across Ireland, signalling the upcoming Local Property Tax (LPT) revaluation. For many, this will trigger concerns about rising property values and the impact on their annual tax bill. While it may be tempting to set the letter aside, understanding your obligations now can prevent significant stress and financial penalties later.
This guide will walk you through everything you need to know about the looming revaluation. We will cover key dates, how to assess your property’s value, and the potential consequences of getting it wrong. By the end, you will have a clear understanding of the steps you need to take to ensure you are compliant and confident in your LPT return.
Key Dates and Deadlines for the LPT Revaluation
The most critical date for homeowners is November 1st, 2025, which is the official valuation date. You are required to assess the market value of your residential property on this day.
Following this, the deadline for filing your LPT return is November 7th, 2025. It’s essential to meet this deadline to avoid penalties and interest charges. The valuation you submit will determine your LPT liability for the period from 2026 to 2030.
Understanding the Shift in Property Values
Since the last revaluation in November 2021, the Irish property market has seen significant growth. According to the Central Statistics Office, nationwide property prices have risen by an average of 23%. This figure, however, varies across different regions.
For instance, the Border, West, and Mid-West regions have experienced the highest growth, with property values increasing by as much as 33%. In contrast, Dublin has seen a more modest, though still substantial, rise of 18%. This surge in property values is the primary reason for the LPT revaluation, as the system needs to reflect current market realities.
Updated LPT Bands and Rates Explained
To cushion homeowners from steep increases in their tax bills, the government has widened the LPT bands and adjusted the tax rates. The basic tax rate has been reduced to 0.0906%, which is about half the rate that applied before 2022.
Here’s a look at how the changes will affect properties in different price ranges:
- Properties under €240,000: A home in this bracket will see a minimal LPT increase of just €5, from €90 to €95 per year.
- Properties between €420,001 and €525,000: The annual LPT for homes in this band will rise by €23, from €405 to €428.
- Properties between €630,001 and €735,000: Homeowners can expect an increase of €33, with the annual bill rising from €585 to €618.
- Properties valued over €2.1 million: These are taxed outside the standard band system. The LPT is calculated as 0.0906% on the first €1.26 million, 0.25% on the value between €1.26 million and €2.1 million, and 0.3% on any value above €2.1 million.
It’s also important to remember that local authorities have the power to adjust LPT rates by up to 15%. From 2027, they will be able to increase the charge by as much as 25%, making it crucial to stay informed about local council decisions.
How to Assess Your Property’s Value
As a homeowner, you are responsible for providing an honest and accurate valuation of your property. While Revenue will provide an estimated valuation in its letter, you must conduct your own assessment. Here are a few ways to do this:
1. Check the Property Price Register
The Property Price Register is an excellent resource for seeing what similar properties in your area have recently sold for. This provides a solid, evidence-based starting point for your valuation.
2. Use the CSO’s Residential Property Price Index
If there haven’t been many recent sales in your area, you can use the Central Statistics Office (CSO) Residential Property Price Index. This tool allows you to adjust the price of a past sale to reflect market changes over time.
3. Review Properties on the Market
Looking at the asking prices of properties currently for sale in your neighbourhood can also provide a guide. Keep in mind that properties often sell for slightly more than their asking price in the current market.
4. Consult a Professional Valuer
For the most accurate assessment, you can hire a professional valuer. This will come at a cost (typically over €100), but it provides a formal valuation that is difficult for Revenue to challenge.
Whichever method you choose, it is vital to document your process. Keep records of property ads, printouts from the Property Price Register, or any other information you used to arrive at your valuation. This documentation will be invaluable if Revenue queries your assessment in the future.
Filing Your LPT Return
Once you have determined your property’s value, the next step is to file your return by the November 7th deadline. You can do this online through Revenue’s myAccount portal, ROS, or the dedicated LPT online channel.
To complete your return, you will need:
- Your Property ID and LPT PIN (found on the letter from Revenue).
- Your PPS number.
- Your property valuation as of November 1st, 2025.
- Details of how you intend to pay.
Revenue offers several payment options, including a lump sum payment by card, monthly direct debit, or deductions from your salary or pension.
The Consequences of Ignoring Your LPT Obligations
Failing to file your LPT return or deliberately undervaluing your property can lead to serious consequences. Revenue has significant powers to enforce compliance.
If you ignore the letter, Revenue can:
- Deduct the LPT charge directly from your salary, pension, or certain welfare payments.
- Charge interest at a rate of 8% per year on any outstanding LPT.
- Withhold tax clearance certificates, which can affect your ability to access certain grants or sell your property.
- Offset the amount owed against any tax refunds you might be due.
Furthermore, if you sell your home for a price significantly higher than your LPT valuation, Revenue will likely investigate. This could result in a demand for back-payment of LPT at a higher rate, along with interest and penalties. Trying to save a small amount now could cost you dearly in the long run.
Deferral and Exemption Options
Revenue does offer deferral options for homeowners experiencing financial hardship. For instance, single individuals with an annual income under €25,000 can apply for a full deferral. For couples, the income threshold for a full deferral is €40,000.
A deferral is not an exemption; it is a postponement of the payment. Interest at a rate of 3% per year is applied to the deferred amount, which becomes a charge against the property and must be paid when the house is sold or transferred.
Navigate the LPT Revaluation with Confidence
The upcoming LPT revaluation adds another layer of financial administration for homeowners. While the process may seem daunting, a proactive and honest approach is the best way to manage your obligations and avoid future complications. Take the time to assess your property’s value carefully, file your return on time, and keep detailed records of your valuation process.
If you are navigating a property transaction or have concerns about your LPT liability, seeking professional advice can provide clarity and peace of mind. Our experienced property solicitors at HOMS Assist are here to guide you through every aspect of property law, ensuring your interests are protected.
Contact us today for expert legal support and navigate your property journey with confidence.
