Missed the LPT Deadline Discover What Happens Next

The local property tax (LPT) returns deadline has significant implications for homeowners across the region. Approximately 2.25 million residential property owners must submit updated property valuations to the Revenue Commissioners, with the deadline set for Friday. These valuations, reflecting property worth as of November 1, will influence LPT payments from 2026 until the end of 2030.

Understanding the Valuation Process

The Revenue Commissioners categorize properties into 19 valuation bands. The first band encompasses homes valued up to €240,000, while the subsequent bands increase in increments of €105,000, reaching up to €2.1 million. Tax bills can range from €95 for homes in the lowest band to €3,110 for properties valued between €1.995 million and €2.1 million. Homes exceeding this threshold incur a 0.3% tax on the value above €2.1 million.

What Happens If You Miss the LPT Deadline?

Homeowners who fail to submit their valuations can expect continued pressure from the Revenue to comply. The Revenue will process estimated valuations based on the letters sent to homeowners containing their property ID and PIN. This estimate does not absolve homeowners from their obligation to file, regardless of acceptance or disagreement with the provided valuation.

Implications of Ignoring the Valuation

• If you maintain the same valuation as previously submitted, be aware that the valuation bands and tax rates have changed since November 2021. This could result in a lower tax bill, but also attract scrutiny from Revenue.
• Ignoring the LPT could build significant issues. Revenue has the ability to collect based on its estimates, and homeowners who neglect their responsibilities may face compliance enforcement.
• When selling a property, outstanding LPT dues will hinder the sale process. Revenue does not permit sales of properties with unpaid taxes or unfiled returns.

Deferment Options and Additional Considerations

In specific situations, homeowners may defer their LPT payment, either partially or fully. However, it’s crucial to understand that deferment is not an exemption, and interest will accrue at a rate of 3% annually until the bill is settled.

Eligibility for Deferral

• Individuals earning less than €25,000 may qualify for complete deferral.
• Single people earning up to €40,000 can defer half of their LPT bill, while couples may defer their payment if their combined income is under €55,000.
• Other grounds for deferral include personal hardship, insolvency, or managing assets related to a deceased property owner.

Those seeking a deferral must apply officially; automatic assumptions will not suffice. Homeowners should be proactive to avoid potential complications with their LPT obligations.