Local Property Tax – The Details

The details of the new Local Property Tax have been announced in the 2013 Budget

Our original assumption that it will be a self assessed tax based on the market value of the property was correct . More about Self Asessment of Property Tax Here

The tax  rate is based on 0.18% for the first 1 million of value and 0.25% on the portion of the value over 1 Million. The minimum tax is €90 a year on houses less than €100,000

Properties valued over €1m will be assessed at the actual value (no banding will apply) at €1800 plus  0.25% of the portion of the value above €1m

Property Tax Calculator

See Here – How Much Property Tax Will You Have to Pay ?


The Property Tax is due to take effect from July 2013 – so  only 6 months tax will be charged in 2013.   The Household charge will be abolished from Jan 2013 and the NPPR is stopping in 2014.

Property Tax exemptions will  be the same as those for the Household Charge .  (Tenants will not be liable). More about Property Tax Exemptions Here

Homeowners with low income can apply for  a deferral. This means the tax will still be charged – but payment can be delayed – even until after death.

A voluntary deferral will be available to those whose gross income limits do not exceed €15,000 for a single person and €25,000 for a couple.

A deferral option will also be available up to the end of 2017 where gross income less 80 per cent of mortgage interest falls below €15,000 for single people and €25,000 for a couple.

The local property tax will eventually have to be paid when the house is sold or on death of the owner. A 4%  annual interest rate on the tax will be charged on any deferred amounts .

The Revenue Commissioners will collect the property tax and will also take over the collection of  Household Charge arrears.

They will struggle to track down owners if they are relying on the Household Charge database – but it is all they have.

Revenue is expected to start collection of the Property Tax from July 2013  and will offer  the options of paying it in annually , in instalments or having it deducted from wages.

See our list of Answers About Property Tax for more useful information.

Not long after the introduction of this Property Tax – homeowners will then be asked to  pay Water Charges (from early 2014)  . This could add as much as another €500 to owners and tenants annual outgoings .  More about Water Charges.

It is not yet clear if there will be a dedicated Property Tax web site such as PropertyTax.ie

(The PropertyTax.ie domain is owned by Halifax Insurance Ireland Limited – but they  are not using it. I wonder how much they will want to sell it for ? )

31 Comments

  1. Marie Henry says:

    Property Tax: With regard to my property tax payment please tell me what do you think?

    I am a widow age 78 and wonder can I apply for disability exemption to that tax or at lease a reduction ?
    My income is 30.000.00 euro per year.
    My problem is a fractured back since 2002 with severe arthritis.
    I can get around with the help of a stick, a stairlift and a disability drivers licence.

    I would appreciate hearing what you have to say?

    Regards and thank you,

    Marie Henry.

  2. pam says:

    My mother passed away June 2012. A family member lived at the house until November wherupon he emigrated. We will collectively inherit the house but we have put a tenent in there for the time being. Who is responsible for paying the house tax? We have not registered with anyone nor have we received a bill for last year’s fixed tax. My mother was a pensioner – could this be the reason?

    Many thanks

    • Money Expert says:

      Pam your mother would have been liable for the Household Charge for 2012 . That charge will probably have to be paid before the house is inherited or sold. No bill would have been sent to your mother – it was self registration and thousands didn’t pay it (yet).
      The liability date for the new property tax in 2013 is MAy 1st – so whoever owns the house then will be liable.
      In the case of joint owners – any one of them can register and pay andsort out the split between themselves.

  3. Maz says:

    I share a house with my parents, they own two thirds and I own one third. They are pensioners on a state pension.. Who pays the property tax in this case ? Am I liable for the whole lot?

    • Money Expert says:

      Maz Revenue say that if you are not the sole owner of the property, you should agree with the other owner(s) who is to complete and submit the Return and pay the tax due. If no one pays, Revenue can collect the tax due from any of the joint owners.
      You will just need to sort out any splitting of the bill between you .

  4. Asta Ghee says:

    What exactly does Voluntary Deferral mean? I am an OAP whose pension is less than 15,000.
    Thank you

    • Money Expert says:

      Voluntary deferral means you have the choice to pay it now or delay paying it . The idea is that it will be paid when the property is sold or inherited.