Dáil Éireann Debate, Thursday - 15 January 2026
310. Deputy Peadar Tóibín asked the Tánaiste and Minister for Finance the reason people with disabilities or their carers have their property tax deferred and have a 4% added interest cost added annually; and the way this will be addressed. [2998/26]
View answerThe Finance (Local Property Tax) Act 2012 (as amended) provides for the possibility of deferring the charge to Local Property Tax (LPT) in certain circumstances to assist individuals who may have difficulty paying the tax. A qualifying person may opt to defer, or partially defer, payment of the tax. Where a person qualifies for a full deferral then 100% of the liability can be deferred. Where a person qualifies for partial deferral, then 50% of the liability can be deferred. The balance of 50% of the tax must be paid. The deferred tax remains as a charge on the property and must be paid before a sale or transfer can be completed.
In respect of 2026 and future years, income thresholds are €25,000 for a single person and €40,000 for a couple to qualify for a full LPT deferral. The income thresholds to qualify for a partial deferral are €40,000 for a single person and €55,000 for a couple.
Between 2013 and 2021, interest was charged at 4% per annum on the deferred amount. This interest rate was reduced in the Finance (Local Property Tax) (Amendment) Act 2021 so that from 1 January 2022, the interest rate on deferred payments is 3%.
The 2012 Act does provide for an exemption from LPT for properties that have been purchased, adapted or built for use by an incapacitated person, subject to the qualifying conditions for the relief. The exemption will only apply where the cost of the adaptations exceeds 25% of the market value of the property before it was adapted. Further detail on this exemption is available on Revenue’s website: www.revenue.ie/en/property/local-property-tax/lpt-exemptions/incapacitated-persons.aspx
The LPT legislation also provides for a reduction in the chargeable value for homes that have been adapted for use by a person with a disability. The policy objective of this provision is to ensure that homeowners with a disability, whose properties have realised an increase in value due to necessary adaptations having been made, are not liable for a higher LPT charge as a result of those necessary adaptations.
It is also possible to apply for a deferral on the grounds of hardship if a person suffers an unexpected and unavoidable significant loss or expense as a result of which a person cannot pay their LPT liability without suffering financial hardship. Further information regarding the deferral of LPT is available on the Revenue website at: www.revenue.ie/en/property/local-property-tax/deferral-of-payment/index.aspx
Any property owners experiencing financial difficulties can avail of a wide range of flexible payment options both in respect of their LPT liabilities and for any previous years where liabilities remain outstanding. The full range of payment options, which includes phased arrangements, are available to property owners on the Revenue website at: www.revenue.ie/en/property/local-property-tax/paying-your-lpt/index.aspx
Finally, property owners experiencing difficulties in meeting their LPT obligations can contact Revenue through MyAccount at www.revenue.ie or by calling the LPT helpline (01) 7383626.
