Dáil Éireann Debate, Tuesday - 7 July 2026
243. Deputy Conor D. McGuinness asked the Tánaiste and Minister for Finance the estimated full-year yield if the residential zoned land tax increased to 7%, if the land's annual value is based on 2025 figures. [50946/26]
Amharc ar fhreagraResidential Zoned Land Tax (“RZLT”) was introduced by section 80 of Finance Act 2021 to encourage the use of residential zoned and serviced land for the purposes of building homes. It is an annual tax which is calculated at 3% of the market value of land within its scope and is charged on 1 February each year beginning in 2025.
RZLT is a self-assessed tax which applies to land which has been zoned for residential use and is serviced. The tax aims to incentivise landowners to activate existing planning permissions for housing on land identified on maps published by Local Authorities as meeting this criterion, or to engage with planning authorities and seek planning permission in respect of such land. It is designed primarily as a behaviour changing measure rather than a revenue raising measure.
RZLT may be deferred where the relevant conditions are met — for example, in the 12-month period after the date of grant of planning permission or where residential development has commenced. Owners who complete development within the lifetime of their planning permission may never be obliged to pay the deferred tax. Where development is incomplete on expiry of the planning permission, a portion of the deferred tax may become payable based on level of completion. Deferred tax also falls due on the sale or transfer of a site outside of a group and must be paid before that transaction completes.
RZLT is due by 23 May each year.
I am advised by Revenue that collections for Residential Zoned Land Tax (RZLT) in respect of the 2025 period were €56.7 million. Using this as the basis for estimation, the annual additional yield of applying a 7% RZLT rate in 2025 is estimated to be €75.5 million. This is estimated on a straight line or pro-rata basis if the RZLT rate increased from 3% to 7%. The estimate also applies the pattern of deferrals and exemptions as recorded for the 2025 period.
