The Residential Zoned Land Tax (RZLT) was introduced in Finance Act 2021 and first charged in 2025. It seeks to increase housing supply by encouraging the activation of residential development on lands which are suitably zoned and appropriately serviced.
Owners of land which was zoned for residential use and serviced on 1 January 2022, or which first became both zoned for residential use and serviced in the course of 2022, and which appeared on the revised map published by local authorities by 31 January 2025, first became liable to RZLT on 1 February 2025.
It is important to note that, to come within the scope of RZLT, farmland must be both zoned for residential use and serviced. Farmland that is zoned for residential use, but which is not currently serviced is not within the scope of the tax and will only come within the scope of the tax should the land become serviced in the future.
The legislation also provides that farmland which is zoned for mixed use, including residential use, and which is integral to the operation of a farming trade carried out on or beside it, is excluded from the tax, even where such land is serviced, and should not be included on the RZLT maps prepared and published by local authorities identifying land within the scope of the tax.
There is currently an opportunity for landowners whose land appears on the revised map for 2026 published on 31 January 2026 to request the relevant local authority to change the zoning of the land, including a request to change the zoning to reflect the current economic use of the land. The application must be made between 1 February and 1 April 2026 to the relevant local authority. Where certain conditions are met, a landowner may claim an exemption from RZLT for 2026 on foot of making such a rezoning request. This claim may be made as part of the 2026 RZLT return which must be filed by 23 May 2026.
Local Authorities will consider these requests, having regard to the proposed planning and sustainable development of the area, along with any relevant Section 28 guidelines issued by the Minister for Housing, Local Government and Heritage. Landowners will be notified of the decision to proceed or not to proceed with a process to amend the land zoning by 30 June 2026.
The Deputy should also be aware that as much as possible, it is important to treat all landowners in a similar way in relation to the application of RZLT. Consequently, if we were to exempt one group of landowners such as farmers, other than that already mentioned, whilst applying the tax to others who may have equally compelling reasons from an economic activity perspective to seek an exemption, there is a risk of a legal challenge to the legislation.
As with all taxes, RZLT is kept under regular review by officials in my department.
