Dáil Éireann Debate, Wednesday - 26 November 2025
137. Deputy Barry Ward asked the Tánaiste and Minister for Finance if any review or research has been carried out into the potential cost to the Exchequer of waiving the cost of local property tax for all those in receipt of the state pension; and if he will make a statement on the matter. [66404/25]
Amharc ar fhreagra138. Deputy Barry Ward asked the Tánaiste and Minister for Finance if any review or research has been carried out into the potential cost to the Exchequer of waiving the cost of local property tax for all those in receipt of the widows pension; and if he will make a statement on the matter. [66405/25]
Amharc ar fhreagra139. Deputy Barry Ward asked the Tánaiste and Minister for Finance his views on the merits of conducting an overall assessment of the existing local property tax scheme to create a more equitable system based on ability to pay rather than property value; and if he will make a statement on the matter. [66406/25]
Amharc ar fhreagra140. Deputy Barry Ward asked the Tánaiste and Minister for Finance his views on the merits of waiving the cost of the local property tax for all those in receipt of the widows pension; and if he will make a statement on the matter. [66407/25]
Amharc ar fhreagra141. Deputy Barry Ward asked the Tánaiste and Minister for Finance his views on the merits of waiving the cost of the local property tax for all those in receipt of the State pension; and if he will make a statement on the matter. [66408/25]
Amharc ar fhreagraI propose to take Questions Nos. 137, 138, 139, 140 and 141 together.
Local Property Tax (LPT) was legislated for in 2012 in the Finance (Local Property Tax) Act 2012. The design of LPT was considered by an interdepartmental group chaired by Dr. Don Thornhill. In 2015, Dr. Thornhill also produced a review of the operation of the LPT. The tax was subject to another review in 2019 by an interdepartmental group chaired by the Department of Finance.
The potential impact of a waiver on LPT for those in receipt of the State Pension or Bereaved Partner’s Pension (formerly known as the Widows Pension) was not examined as part of these reports. I am advised by Revenue that it is not possible to conduct the analysis identified by the Deputy because there is no marker on a LPT return to indicate that the owner is in receipt of a State payment.
Regarding an assessment of the current LPT structure, in advance of revaluation this year, officials in Revenue’s Statistics Branch conducted an extensive modelling and valuation exercise in respect of LPT liable properties. The purpose of this work was to inform policy decisions and to assist with providing guidance to taxpayers on the valuation of their properties ahead of this November. A paper outlining the process was published in September and is available on Revenue’s website: www.revenue.ie/en/corporate/documents/research/property-valuation-technical-paper-2026.pdf.
Revenue collaborated with the Department of Finance in respect of various scenarios and their estimated impacts under the model. This collaboration allowed Department officials to prepare options for Minister Donohoe to consider in respect of revaluation, taking into account the Programme for Government commitment, the impact on property owners and the overall tax yield.
The changes to LPT that have been implemented will ensure that the majority of homeowners remain in the same valuation band and pay between €5-25 in extra LPT for 2026 onwards. This represents the first increase in LPT charges since the introduction of the tax in 2013. Accordingly, Government have agreed it is fair to ask property owners to pay a small amount more going forward, with the result of raising approximately €45 million of additional funding for local services.
Furthermore, Government approved the indexation of the income thresholds for deferral of LPT for 2026-2030, ensuring that the thresholds keep pace with inflation and growth in wages and State payments since 2021.
A small number of properties will move up a band due to significant appreciation in value since 2021. It was not possible to ensure these properties would remain in their current band without consequentially causing many other properties to drop one or more bands. I believe that we have struck an appropriate balance with the charging mechanism for 2026-2030.
On the introduction of the LPT, the Government decided that a liability to the tax should apply to all owners of residential properties with a limited number of exemptions. Limiting the exemptions available allows the rate to be kept low for those liable persons who do not qualify for an exemption. There is no specific exemption from the requirement to pay LPT for property owners in receipt of the State Pension or Bereaved Partner’s Pension under the Finance (Local Property Tax) Act 2012 (as amended), though such persons may be entitled to an exemption on other grounds or may qualify for a deferral subject to meeting the qualifying conditions.
As mentioned, homeowners have the possibility of deferring the charge to LPT in certain circumstances. A qualifying person may opt to defer, or partially defer, payment of the tax. Where a person qualifies for a full deferral, 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. Interest is charged at 3% per annum on the deferred amount. 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.
For the LPT valuation period 2026-2030, the income threshold for a single person to qualify for a full deferral is €25,000, and for a partial deferral is €40,000. For a couple, the income threshold to qualify for a full deferral is €40,000, and for a partial deferral is €55,000.
It is also possible to apply for a deferral on the grounds of hardship where 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.
Any property owners experiencing 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.
For these reasons, it is my view that a property tax system that is calculated on the basis of property value, with supports in place for those who need assistance, is appropriate and fair.
