Are Pensioners Exempt From Property Tax in Ireland?

The annual Property Tax in Ireland is called the Local Property Tax (LPT). Local Property Tax is charged on residential properties in Ireland.

There are no specific local property tax exemptions for pensioners. However, there are a number of deferred options available based on income. Don’t forget deferred still means the local property tax is due to be paid at a later date.

Any deferred amounts have interest charged on them at a rate of 4% a year. The previous deferral interest rate of 4% applied up to 31 December 2021.

The rate of interest charged on all deferred amounts from 1 January 2022 is 3% per year.

Local Property Tax Deferments based on income

Liable person (owner-occupiers only)	To qualify for a full deferral your gross income must not exceed	To qualify for a partial (50%) deferral your gross income must not exceed
Single, no mortgage	€18,000	€30,000
Couple, no mortgage	€30,000	€42,000
Single, with mortgage	€18,000 + 80% of gross mortgage interest	€30,000 + 80% of gross mortgage interest
Couple, with mortgage	€30,000 + 80% of gross mortgage interest	€42,000 + 80% of gross mortgage interest

Gross income is the total income before any deductions. Couples include married people, people in a civil partnership and cohabitants.

Cohabitants are people who have lived together for at least 2 years if they have children or 5 years if they have no children.

Example #1

Couple under 80 with no mortgage with full state pension

Person 1: Weekly state pension: €253.30 x 53 = €13,424.90
Person 2: Weekly state pension: €253.30 x 53 = €13,424.90

Total Gross Income: €26,849.80
Cut off for full deferment: €30,000.00
Result: Deferment allowed.

Example #2

Single Person with no mortgage with full state pension & ARF or Annuity Pension

Person 1: Weekly state pension: €253.30 x 53 = €13,424.90
Person 1: Weekly ARF or Annuity Pension: €10,000.00

Total Gross Income: €23,424.90
Cut off for deferment: €18,000.00
Result: No Deferment

However, the cut for 50% deferment is €30,0000. So 50% of the local property tax can be deferred.

Example #3

Couple with a mortgage with full state pension & ARF or Annuity Pension

Person 1: Full Weekly state pension: €253.30 x 53 = €13,424.90
Person 1: Annual ARF or Annuity Pension: €10,000.00
Person 2: Partial Weekly state pension: €215.70 x 53 = €11,432.10
Person 2: Annual ARF or Annuity Pension: €5,000.00

Check your mortgage amortisation table to see the amount of interest you pay each month. Contact your mortgage lender to get a copy of this if you don’t have to hand.

In this example, we’ll assume an annual mortgage interest amount of €1,500.00

Total Gross Income: €39,857.00

Cut off for full deferment: €30,000.00 + 80% of gross mortgage interest (€1,500.00 * 80%) €30,000.00 + €1,200.00 = €31,200.00

Cut off for 50% deferment: €42,000.00 + 80% of gross mortgage interest (€1,500.00 * 80%) €30,000.00 + €1,200.00 = €43,200.00

Result: 50% deferment allowed.

Deferral following a death: Death of a member of a couple

If a member of a couple who previously was granted a deferral dies, the deferral remains in place until the next valuation date. (currently 1 November 2025).

On 1 November 2025 the surviving person may then make a claim for deferral provided they meet the criteria. The amount that was deferred prior to 1 November 2025 may continue to be deferred.

Deferral following a death: Personal representatives of a deceased person.

The personal representative then has the duty to distribute the deceased person’s money and property in accordance with the will or with the laws of intestacy if there is no will.

The personal representatives of a deceased person may apply for a deferral of LPT until the earlier of either:

• The date on which the property is transferred or sold.
• 3 years after the date of death.

To qualify for deferral, the deceased person must have been the sole owner of the property.

You can claim a deferral for any LPT outstanding at the date of death, any LPT already deferred by the deceased person and LPT that became payable following the death.

This form of deferral is normally used by the inheritors of an estate or the solicitor disposing of an estate.

Deferral based on hardship

You can claim a deferral if you have had an unexpected and unavoidable significant loss or expense and as a result, you are unable to pay LPT without too much financial hardship. You must disclose your financial circumstances and any other information required by Revenue.

Examples of the type of losses or expenses that may be considered include:

• Emergency medical expenses.
• Major repairs that are unexpectedly needed to keep your house habitable.
• Expenses due to a serious accident or the death of a family member.
• The loss of your job.
• A bad debt you incur if you are self-employed.

Deferral based on personal insolvency

If you have entered into a Debt Settlement Arrangement or a Personal Insolvency Arrangement, you can apply for a deferral of LPT while the insolvency arrangement is in place.

You must have formally agreed to your insolvency arrangement with the Insolvency Service of Ireland and your Insolvency Case Number must be included with your application.

You will have to pay the deferred LPT, including accrued interest, when the insolvency arrangement ends. If you own residential property on 1 November, including rental property, you must pay LPT. This is called the liability date.

For 2022 LPT, the liability date is 1 November 2021.

If there is more than one owner, you need to agree on who will pay the tax otherwise, Revenue can collect it from any of the owners.

In some cases, you must pay the LPT if you are not the owner

If you are a tenant with a long-term lease of more than 20 years or if you have a right to live in the property for life or for more than 20 years or a right to live there to the exclusion of all others.

When do I pay Local Property Tax

You are liable for LPT if you own a residential property on 1 November of the given year. The tax you pay is based on the market value of the property on the valuation date. The valuation date for the 2022 LPT payment was 1 November 2021.

How do I calculate my LPT

1. Visit: lpt.revenue.ie/lpt-web/valuation-guide/index.htm
2. Put in your Eircode.
3. This will give you a valuation band that your property falls into.

For properties worth more than €1.75 million, see below.

Properties worth more than €1.75 million are assessed on the actual value of the property rather than from a valuation band. The LPT charge for these properties is the total of:

• 0.1029% of the first €1.05 million of the market value of the property.
• 0.25% of the portion between €1.05 million and €1.75 million.
• 0.3% of the portion above €1.75 million.

Example Property worth €2 million

• 0.1029% of the first €1.05 million = €1050,000 * 0.1029% = €1,080.45.
• 0.25% of the portion between €1.05 million and €1.75 million = €700,000 * 0.25 = €1,750.
• 0.3% of the portion above €1.75 million = €250,000 * 0.3 = €7,500.
• Total Property Tax Due = €1,080.45 + €1,750 + €7,500 = €10,330.45.

How do I pay LPT

• LPT is a self-assessment tax so you calculate the tax due based on your own assessment of the market value of the property.
• You can pay your local property tax online at: lpt.revenue.ie/lpt-web/valuation-guide/index.htm.
• You will need your PPS number, Property ID and PIN number.
• If this is your first time paying your LPT you will have to request your property ID and PIN on the same site.
• You can pay your LPT in a single payment using a debit or credit card or through an annual direct debit.
• OR pay monthly instalments through a monthly direct debit or have your local property deducted monthly from your salary or pension.

What If I can’t my LPT online
You can pay your local property tax through your local post office. You will need to bring the following:

1. The letter from Revenue informing you of your local property tax is due.
2. Have your PPS number with you.
3. Make sure you keep the receipt the post office gives you as proof of payment.

Be aware there is a €1 per transaction charge for all property tax payments.

Property that is not liable for LPT
If your property is not liable for LPT, you do not need to submit an LPT return. Property that is not liable includes:

1. Commercial property that is fully subject to commercial rates and is not a residential property.
2. Unoccupied property that is not suitable for living in.
3. Diplomatic property.
4. Mobile homes, vehicles and vessels (boats).
5. Properties in unfinished housing estates (commonly called “ghost estates”) specified in the Finance (Local Property Tax) Regulations 2013.