Deferral of Local Property Tax payment

Overview

You can defer the payment of your Local Property Tax (LPT) if you meet certain specified conditions. A qualifying person may opt to either:

  • fully defer payment of LPT
  • or
  • partially defer payment of LPT, with 50% paid and 50% deferred.

A deferral is not an exemption. You are deferring the payment of the LPT. The deferred LPT becomes payable at a later date. The deferred LPT remains a charge on the property until it is paid. Interest will accrue on the unpaid amount until it is paid.

There are five separate categories available for deferral of LPT:

  • income threshold
  • mortgage adjusted income threshold
  • personal representatives of a deceased liable person
  • personal insolvency
  • hardship grounds.

Interest rate reduction

The current deferral interest rate of 4% will apply up to 31 December 2021. From 1 January 2022 the rate of interest that will be charged on all deferred amounts from 1 January 2022 will be reduced from 4% to 3% per year. However, this will not affect the amount of interest accruing to 31 December 2021 at the rate of 4%.

Deferral and sale or transfer of a property

You should pay any outstanding charge, including interest, to Revenue when you are selling or transferring the property. Revenue clearance for a sale or transfer of a property will not be granted if payments are still deferred. You should pay all charges, inclusive of the amount of interest due up to the date of payment, before you can obtain clearance.

Owner-occupiers

You can only claim deferral for ‘income threshold’ or ‘mortgage-adjusted income threshold’ if you occupy a property as your only or main residence. This means that a deferral cannot be claimed under those two deferral categories for your rental property or a second home. This restriction does not apply in the case of the other three categories of deferral.

How to apply and duration of deferral for each category

You can find out more about how to apply for each deferral category on the relevant page in this section.

The duration of deferrals will vary depending on the category of deferral and your circumstances. You are obliged to inform Revenue if:

  • your circumstances have changed
  • and
  • you no longer meet the criteria for the deferral category that you have claimed.
Summary of how to apply and duration of deferral for each category
Deferral category How to apply Duration of deferral
 Income Threshold Select this deferral category when you submit your LPT Return either online or using the paper LPT1 Form Deferral claimed will remain in place for the valuation period 2013 to 2021, unless the property is sold or transferred during this period.
Mortgage-adjusted income threshold Select this deferral category when you submit your LPT Return either online or using the paper LPT1 Form. Deferral claimed will remain in place for the valuation period 2013 to 2021, unless the property is sold or transferred
during this period. 
Personal representatives of a deceased liable
person
Select this deferral category when you submit your LPT Return either online or using the paper LPT1 Form. You also need to complete the LPT2 Form. This deferral is claimed for a maximum period of three years starting on the date of death of the liable person, unless the property is sold or transferred within the three-year period.
Personal insolvency

Select this deferral category when you submit your LPT Return either online or using the paper LPT1 Form. You also need to complete the LPT2 Form.

This deferral is claimed for the period for
which the insolvency arrangement is in place.
Hardship grounds

Select this deferral category when you submit your LPT Return either online or using the paper LPT1 Form. You also need to complete the LPT2 Form.

This deferral applies for 1 year only.

Next: Income thresholds