The Local Property Tax is due for revaluation on November 1^st 2025. The government recently introduced an Act, the Local Property Tax and Other Provisions) (Amendment) Bill 2025, to make a number of important changes to the structure of the Local Property Tax to take effect from this date.

Key Changes Introduced by the 2025 Act include a new valuation period; The LPT system will adopt a new five-year valuation period, beginning in 2026, with a valuation date of 1 November 2025. The next revaluation is scheduled for 1 November 2030.

Updated LPT Returns; Property owners will need to submit an updated LPT return by 7 November 2025, as part of the new valuation process.

Revised Charging Structure: The Act introduces changes to the charging structure, with LPT charges expected to increase.

The 2025 Act removes an administrative practice that provided a reduction in LPT for properties adapted for use by a person with a disability.

Some of the implications for Property Owners include items such as the fact property owners must take action to file their updated LPT return by the 7 November 2025 deadline. Also the market value of the property as of 1 November 2025 will be the fundamental basis for the upcoming LPT valuation.

There may be an increase in LPT charges, with modest increases of 5-6% for homes under €1.26 million and 7-14% for homes between €1.26 million and €2.1 million.

All this means that Local Property Tax (LPT) is likely to increase next year for the majority of homeowners. Revenue have begun the process of writing to the 1.5 million homeowners in the country, asking them to re-evaluate their property’s value.

This re-evaluation will be used to determine the amount of Local Property Tax homeowners will pay for the next five years. House price inflation has increased by around 25% nationally since the last time owners were asked to value their properties for LPT.

Property owners who fail to pay the new Derelict Property Tax could find themselves on Revenue’s annual tax defaulter list, Finance Minister Paschal Donohoe announced this month.

The new tax announced as part of Budget 2026 will replace the current Derelict Site Levy as part of a Budget measure that aims to bring empty housing back into stock. Donohoe said that legislation to bring the measure into effect will be tabled next year.

The measure will essentially change what is currently a levy that is collected separately by local authorities into a tax that is collected more centrally by Revenue.

Currently, every local authority in Ireland maintains a Derelict Sites Register that includes sites which are deemed derelict by the city or county council in which they are located.

If you own residential property on November 1^st, including rental property, you must pay LPT. This date is called the liability date.

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 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’

If a property is rented on a normal short-term lease (less than 20 years), the landlord pays the LPT.

 

NB – This is a guide for information purposes only and does not constitute legal advice. If you have an issue requiring legal advice, please contact any of the team at Nolan Farrell & Goff LLP, whose numbers can be found on our website www.nfg.ie, or email info@nfg.ie.