The valuation bands and Local Property Tax rates (LPT) have all changed from January 2022.
This is the first change since the Property Tax was introduced in 2013. ( After the short-lived Household Charge)
(NB – House prices have increased by 94% since 2013 ).
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Is The Property Tax Increasing in 2022 ?
- The changes to the LPT banding and amounts in 2022 are estimated to result in no change in LPT liability for about 53% of taxpayers .
- About 11% of taxpayers should see a decrease in their liability as a result of the new valuation bands .
- The liability of 33% of taxpayers should increase but by no more than €100 a year.
- About 3% of property taxpayers are expected to incur an increase of over €100 a year.
The exact details of the 2022 Property Tax Bands and rates are shown in the table below.
Table of LPT Bands and Rates 2022
| LPT Bands | Pre 2022 Valuations | Old Property Tax Rates | 2022 Value Bands | Property Tax Rates 2022 |
|---|---|---|---|---|
| LPT Band 1 | 0 - 100,000 | 90 | 0 - 200,000 | 90 |
| LPT Band 2 | 100.001 - 150,000 | 225 | 200,001 - 262,500 | 225 |
| LPT Band 3 | 150,001 - 200,000 | 315 | 262,501 - 350,000 | 315 |
| LPT Band 4 | 200,001 - 250,000 | 405 | 350,001 - 437,500 | 405 |
| LPT Band 5 | 250,001 – 300,000 | 495 | 437,501 - 525,00 | 495 |
| LPT Band 6 | 300,001 - 350,000 | 585 | 525,001 - 612,500 | 585 |
| LPT Band 7 | 350,001 – 400,000 | 675 | 612,501 - 700,000 | 675 |
| LPT Band 8 | 400,001 – 450,000 | 765 | 700,001 - 787,500 | 765 |
| LPT Band 9 | 450,001 – 500,000 | 855 | 787501-875000 | 855 |
| LPT Band 10 | 500,001 – 550,000 | 945 | 875001-962500 | 945 |
| LPT Band 11 | 550,001 – 600,000 | 1035 | 962501-1050000 | 1035 |
| LPT Band 12 | 600,001 – 650,000 | 1125 | 1050001-1137500 | 1190 |
| LPT Band 13 | 650,001 – 700,000 | 1215 | 1137501-1225000 | 1409 |
| LPT Band 14 | 700,001 – 750,000 | 1305 | 1225001-1312000 | 1627 |
| LPT Band 15 | 850,001 – 800,000 | 1395 | 1312501-1400000 | 1846 |
| LPT Band 16 | 800,001 – 850,000 | 1485 | 1400001-1487500 | 2065 |
| LPT Band 17 | 850,001 – 900,000 | 1575 | 1487501-1575000 | 2284 |
| LPT Band 18 | 900,001 – 950,000 | 1665 | 1575001-1662500 | 2502 |
| LPT Band 19 | 950,001 - 1mill | 1755 | 1662501 - 1750000 | 2721 |
| LPT Band 20 | Over €1m | Over 1.75m | 2830+ |
NOTE: Each local authority can charge a lower or higher rate. They are allowed to vary the charge by up to 15% . For example, Dublin City Council is reducing it by 15%.
The details of each local authority adjustment in 2022 can be seen here.
LPT on Higher Value Properties
Under the old rules, properties worth more than €1 million were assessed on the actual value at 0.18% on the first €1 million and 0.25% on the portion above €1 million.
From January 2022 – For properties valued at between €1m and €1.75m (bands 12-19), a rate of 0.1029% will be charged on the first €1.05m and 0.25% on the balance over €1.05m.
For properties worth over €1.75m, they will be charged a rate of 0.1029% is charged on the first €1.75m of their value, with a higher rate of 0.3% on the property’s value in excess of €1.75m.
Some LPT examples:
- A Property valued at €210,000 in 2013 .
- It was in LPT Band 4 under the old Property Tax rules and would be charged €405 a year.
- IF the house is now valued at €420,000 in November 2021 – and will fall under band 4 which is also a charge of €405.
- A Property valued at €149,000 in 2013 .
- It was in LPT Band 2 under the old Property Tax rules and would be charged €225 a year.
- If The house is now valued at €300,000 in November 2021 – and will fall under LPT band 3 which is a charge of €315.
LPT – What You Need to Do Now
LPT is a self-assessed tax. This means that you need to:
- Self-assess the value of your property at 1st November 2021. The valuation of your property on this date will determine the LPT band and the amount of LPT you pay for 2022 and for the three years from 2023 to 2025.
- Submit your LPT Return, including your valuation, by 7th November 2021 (now extended to Nov 10th)
- LPT returns can be made online. If you have not used the LPT online service for previous years, Revenue will issue you with a paper Form LPT1 – LPT Return along with a covering letter.
A Property Tax return will have to be filed in respect of exempt properties and that return should
include a claim to such exemption. Previously, no return was required with respect to exempt properties and
exemptions were deemed to apply without a specific claim.
Value Your House for Local Property Tax
- You can use the Residential Property Price Register as a guide . It shows the sale prices of all of sale prices from 1st. January 2010 to date. There are no details about the type of house or the number of rooms, etc. Also – the price shown on the Register for barnd new houses is exclusive of Value-Added Tax (VAT). If you are referring to the prices of new properties in your area to determine the LPT band of your own property, you should add VAT at 13.5%. You should keep a note of the properties on the Register that you use to determine the value of your own property.
- Revenue have an “Interactive Tool” you can use which indicates the average valuation band for properties by ‘Small Area’. ‘Small Areas’ are compiled on behalf of Ordnance Survey Ireland. There are about 18,600 Small Areas in Ireland, usually with 50 to 200 properties in each. More information here.
- You could get a valuation from an Estate Agent – but this could cost you in the region of €200
Read More About Payment Dates of Local Property Tax in 2022
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