Deferral of Local Property Tax payment
Income thresholds
This category of deferral provides the option for full or partial (50%) deferral of the Local Property Tax (LPT) liability. This option is subject to certain income thresholds. The property should be your only or main residence. An income threshold deferral is not available for landlords or second properties.
If you qualify for a full deferral, then 100% of the liability can be deferred.
If you qualify for a partial deferral, then 50% of the liability can be deferred. You should arrange a payment method to pay the balancing 50% of the liability.
A claim for a deferral under ‘income threshold’ is on a self-assessment basis. However, claims may be selected by Revenue for verification checks.
Income threshold deferrals claimed will remain in place for the valuation period 2022 to 2025, unless the property is sold or transferred during this period. However, you are obliged to inform Revenue if:
- your circumstances have changed
- and
- you no longer meet the criteria for the deferral that you have claimed.
How to check your eligibility
Step one:
Estimate your gross income for the relevant year.
You should estimate your likely income from all sources for a full year. This estimate is for the year in which the liability date falls, that is, 1 November in each year. The estimate should be based on your income in the year before the LPT is payable. For example, the liability date for 2025 LPT is 01 November 2024 so the estimated income should relate to 01 January 2024 to 31 December 2024.
- Example
Mary is a single person who owns one property and occupies it as her main residence. Mary wants to claim a deferral of her payment of LPT for 2025. The liability date for 2025 is 1 November 2024. Mary should estimate what her income from all sources is likely to be for the full year 2024.
Step two:
Determine whether you meet one of the thresholds for claiming either a full or partial deferral.
Gross income is calculated as all income before any deductions, allowances, or reliefs. It includes income that is not subject to Income Tax. The calculation includes income received from the Department of Social Protection (DSP). The calculation excludes Child Benefit.
If you are self-employed, your ‘gross income’ is your taxable income.
Thresholds for claiming either a full or partial deferral
| Liable person (owner-occupiers only) | To qualify for a full deferral gross income should not exceed | To qualify for a partial (50%) deferral gross income should not exceed |
|---|
| Single or widow(er), no mortgage |
€18,000 |
€30,000 |
| Couple, no mortgage |
€30,000 |
€42,000 |
Note:
A couple includes a married couple, civil partners and certain cohabitants.
The thresholds above increase by 80% of gross mortgage interest payments for mortgages taken out before 1 November 2020. For more information, please see Mortgage-adjusted income threshold.
Step three:
Apply for the deferral
There is an option to apply for an Income Deferral on the LPT Return.
If you have already submitted your LPT Return but now wish to apply for a deferral you should submit your request through myEnquiries or by Post to:
FREEPOST
LPT Branch
PO Box 1
Limerick
Next: Mortgage-adjusted income threshold