Reviewed by the advisory team at Greenway Financial Advisors Ltd. · Dublin · Updated October 2026
The short answer
No. There is no Local Property Tax exemption for pensioners or for anyone based on age. But if your income is low enough, you can defer some or all of it. From 2026, a couple whose only income is two full State Pensions is under the limit for a full deferral. Deferred tax is not written off: it builds up with interest at 3% a year and must be paid before the home is sold or passed on.
Local Property Tax is charged on homes in Ireland, and it applies whether you are working or retired. For people living on a pension, the real questions are whether you can put off paying it, what that costs, and how it affects what you leave to your family. This guide covers the rules for 2026 to 2030, with worked examples using 2026 State Pension rates.
What you pay from 2026
Your bill depends on what your home was worth on 1 November 2025. That value sets your band for the five years from 2026 to 2030. These are the basic charges for the most common bands.
| Value on 1 November 2025 | Basic yearly charge |
| Up to €240,000 | €95 |
| €240,001 to €315,000 | €235 |
| €315,001 to €420,000 | €333 |
| €420,001 to €525,000 | €428 |
| €525,001 to €630,000 | €523 |
| €630,001 to €735,000 | €618 |
| €735,001 to €840,000 | €713 |
| €840,001 to €945,000 | €808 |
| €945,001 to €1,050,000 | €903 |
Revenue publishes the higher bands in full. Your local council can adjust the basic charge up or down each year, so your actual bill may differ a little from the table.
Deferring Local Property Tax on a low income
If the home is your only or main residence, you can defer the tax when your gross income is under these limits. Gross income means all income before deductions, including your State Pension, any occupational pension, annuity or Approved Retirement Fund withdrawals, and rental or deposit income.
| Defer all of it if income is no more than | Defer half of it if income is no more than | |
| Single or widowed | €25,000 | €40,000 |
| Couple | €40,000 | €55,000 |
A couple includes married couples, civil partners and certain cohabiting couples. Revenue tests your income for the year before the tax is due, so for 2027 it looks at your 2026 income. If you still have a mortgage taken out before 1 November 2020, the limits go up by 80% of the mortgage interest you pay.
You claim the deferral on your Local Property Tax return. If you have already filed, you can ask Revenue for it through myEnquiries. Once granted, it stays in place until 2030 unless you sell or transfer the home, but you must tell Revenue if your income rises above the limit.
Worked examples for 2027
Both examples use the 2026 State Pension (Contributory) of €299.30 a week for someone under 80, which is €15,563.60 a year. The home was worth €450,000 on 1 November 2025, so the basic charge is €428 a year.
| Mary and John, a married couple | Breda, widowed | |
| 2026 income | Two full State Pensions: €31,127.20 | State Pension €15,563.60 plus €15,000 from an Approved Retirement Fund: €30,563.60 |
| Limit for a full deferral | €40,000. They are under it. | €25,000. She is over it. |
| Limit for a 50% deferral | Not needed | €40,000. She is under it. |
| Result | Can defer the full €428 a year | Pays €214 a year and can defer €214 |
Breda’s case shows why the shape of your retirement income matters. Withdrawals from an Approved Retirement Fund count as income for this test, so the amount and timing of what you take out can decide whether you qualify. Our guide to Approved Retirement Funds and annuities explains the choices.
What deferring really costs
Deferral postpones the bill, it doesn’t cancel it. Three things follow:
- Interest. Revenue charges interest at 3% a year on the deferred amount.
- A charge on your home. The deferred tax stays attached to the property until it is paid.
- Paid on sale or transfer. It must be cleared before the home can be sold or passed to someone else. If you defer until you die, your estate pays it before your children can take the house.
For most families the amounts are modest, but they sit alongside a much larger question: what your children will pay when the house passes to them. From 7 October 2026, each child can inherit €420,000 from their parents before inheritance tax applies. See our guide to inheritance tax in Ireland.
Not sure whether deferring makes sense alongside your pension and estate plans? Call us on 01 853 2727.
Should you defer, or pay?
Our view: if you qualify and money is tight, defer. The interest rate is low and it protects your day-to-day income. If you can pay comfortably, paying as you go is usually the cleaner choice, because it keeps the home free of a charge and leaves nothing for your family to settle later.
| Option | Suits you if | Trade-off |
| Pay in full each year | Your income covers it comfortably | Less cash each year, but nothing builds up |
| Pay from your pension | You’d like it spread out and taken automatically | Smaller pension payments through the year |
| Defer half or all | You qualify and need the income now | Interest at 3% a year, and a charge on the home until it is paid |
Paying from your pension
You can have Local Property Tax deducted from an occupational pension, or from certain Department of Social Protection payments. A deduction from a Department of Social Protection payment can’t take your weekly rate below €252 in 2026, so any shortfall is paid another way. You can also pay by direct debit or card.
Moving into care
If you move out of your home because of long-term illness, it can be exempt from Local Property Tax. This applies if you have been out of the home for 12 months or more, or for less if a doctor confirms you are unlikely to return. The home must be empty, or lived in by someone who isn’t liable for the tax on it. You need a letter from your doctor confirming the illness.
After a death
Where the person who died owned the home alone, the personal representatives can defer Local Property Tax for up to three years from the date of death, or until the home is sold or transferred if that is sooner. This covers tax due at the date of death, anything already deferred and tax that falls due afterwards. It gives the family time to deal with the estate, but the full amount and interest are still paid in the end.
Other ways to defer
Revenue also allows deferral on hardship grounds, where an unexpected and significant loss or expense means you can’t pay without real difficulty, and during a formal personal insolvency arrangement.
Frequently asked questions
Do you stop paying Local Property Tax at 66 or 80?
No. Age makes no difference to Local Property Tax. Only income, illness and a small number of property types can reduce or postpone it.
Does my Approved Retirement Fund count as income?
Yes. Gross income includes everything you receive before deductions, so withdrawals from an Approved Retirement Fund, annuity payments and occupational pensions all count.
What happens to deferred tax when I die?
It is paid from your estate, with interest, before the home can be transferred to your family.
Can I defer tax on a holiday home or rental property?
No. Income-based deferral only applies to your only or main residence.
Talk to an adviser about your retirement income
We look at your pension, Approved Retirement Fund withdrawals, tax and what you’ll pass on as one plan. Call 01 853 2727 or book a free initial meeting.
Related reading: how to calculate tax on pension income · estate and inheritance planning · Budget 2027: what it means for you
General information for the 2026 tax year. Not personal advice. Sources: Revenue Local Property Tax pages on valuation bands, deferral, income thresholds, exemptions and deduction at source (accessed October 2026).