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How to Value Your Property for Local Property Tax (LPT) Purposes

Introduction

Heretofore, properties built from 2013 onward were exempt from LPT. However, as of 2022, every residential property will fall within the Local Property Tax net. Properties built before 2013 will need to update the value that they are using to calculate their liability as at present, the value of the property is as it was in May 2013.

In short, regardless of when your property was built, it will be liable for LPT from 2022 onward. The valuation date is 1st November 2021 i.e. homeowners need to value their property as of this date and then calculate their annual liability accordingly.

How is My Local Property Tax (LPT) Liability Calculated?

In order to calculate your annual property tax liability, you must select which of the 20 bands below to which your property belongs i.e. you must estimate your property’s value.

Current Band Structure New Band Structure for 2022
  Band Charge Band Charge
1 0 – 100,000 € 90 1 -200,000 € 90
2 100,001 – 150,000 € 225 200,000 -262,500 € 225
3 150,001 – 200,000 € 315 262,501 - 350,000 € 315
4 200,001 – 250,000 € 405 350,000 -437,500 € 405
5 250,001 – 300,000 € 495 437,501- 525,000 € 495
6 300,001 – 350,000 € 585 525,001-612,500 € 585
7 350,001 – 400,000 € 675 612,501 - 700,000 € 675
8 400,001 – 450,000 € 765 700,001- 787,500 € 765
9 450,001 – 500,000 € 855 787,501 – 875,000 € 855
10 500,001 – 550,000 € 945 875,001 – 962,500 € 945
11 550,001 – 600,000 € 1,035 962,501 – 1,050,000 € 1,035
12 600,001 – 650,000 € 1,125 1,050,001 – 1,137,500 € 1,190
13 650,001 – 700,000 € 1,215 1,137,501 – 1,225,000 € 1,409
14 700,001 – 750,000 € 1,305 1,225,001 – 1,312,000 € 1,627
15 750,001 – 800,000 € 1,395 1,312,501 – 1,400,000 € 1,846
16 800,001 – 850,000 € 1,485 1,400,001 – 1,487,500 € 2,065
17 850,001 – 900,000 € 1,575 1,487,501 – 1,575,000 € 2,284
18 900,001 – 950,000 € 1,665 1,575,001 – 1,662,500 € 2,502
19 950,001 – 1,000,000 € 1,755 1,662,501 – 1,750,000 € 2,721
20 Over €1m   1,750,001+ 2,830+
      Rate = 0.1029 (fixed charge in first and second bands)  

I’m Not Sure What My Property is Worth / What Band to Choose - What Should I do?

When valuing your property, you are essentially looking for comparable properties to yours that have sold recently. When we discuss comparables, we look at three parameters.

01
Recency

As prices are fluctuating all the time, the more recent the transaction that you are using as a comparable, the more accurate it is in helping assess your property’s current value.

02
Property Type

If your property is a 3-bed-semi, a 4-bed-detached is not a useful comparison. Insofar as possible, you want to compare like with like.

03
Location

The closer the comparable property is to your property, the better.

Ideally, the property next door will just have sold, in which case you have a perfect comparable. In the real world however, you will often have to sacrifice one or more of the above parameters e.g. you may be able to find a similar property quite proximate in location to yours that sold over 12 months ago. Of course the market may have gone up or down in the interim but this will certainly be of interest to you when assessing your own property’s value - in this instance you are sacrificing recency.

You might be able to find a property that has sold in your neighbourhood recently that is slightly inferior or superior to yours i.e. it’s not a direct comparable but by adjusting your property upward or downward, again such a property will help inform your estimated value; in this instance you are sacrificing property type.

Finally, you may use a similar property in a different neighbourhood to your own that sold recently as a comparable, adjusting upward or downward to take account of the neighbourhood; in this instance, you are sacrificing location.

How Do I Find Comparable Properties When Valuing My Property?

Property Price Register

The property price register should be your starting point. Alas, this is a crude database that can’t be searched by property type or square footage but it is the official database of all residential property transactions. Once you find a property on the register, search on Google for that address to try to find the MyHome, Daft or Auctioneera listing of the property from when it was for sale. If you can find that, then you will see all of the information pertaining to the property. You can then decide if the property is comparable or not.

Auctioneera

At Auctioneera, we show the sales price of every property that we have sold on our website; you can view this information by clicking here.

MyHome & Daft

Properties that are for sale on Daft & MyHome will have guide or asking prices. These are of limited value to you in determining your property’s value as properties will rarely sell for exactly the asking price. Oftentimes, properties sell for significantly more or less than the guide price. That said, a peruse of properties for sale in your area and their guide prices will certainly form part of your research. The more determined might even pick up the phone to the selling agent to see if there are any bids on the property to get the latest market information.

I Have Found Comparables - How Do I Decide on My Property’s Value?

Once you have gathered your comparables, review each one dispassionately asking yourself if your property is a superior or inferior property. If you were a buyer in the market, what would you be willing to pay for your property and what would you be willing to pay for the comparables; this is of course a subjective, unscientific exercise but in the absence of actually putting your property up for sale on the open market, this is the only means of assessing your property’s value.

Once you have performed this analysis, you should have a good handle on the approximate value of your property. Refer to the table above to decide to which band your property belongs. There is of course a temptation to undervalue your property but this is strongly not recommended. If, on selling the property, the price achieved would indicate that the valuation set for LPT purposes was artificially low, this can frustrate the sale and Revenue can even look to claw back the balance due. So value your property fairly and you will have no issues in the future.

I Have Decided on My Property’s Valuation - How Do I File My Return & Pay the LPT Bill?

For those already paying, the 2021 bill should be paid in the normal manner as it has been heretofore. For 2022 however, these homeowners will have to update the value of their property and assign their property to one of the new bands. The liability will be calculated accordingly and payment is due in 2022.

For those who own properties built from 2013 onwards, they will have to log into the Revenue website, declare their property’s value and make arrangements to pay.

The Revenue link to file and pay your return is: https://lpt.revenue.ie/lpt-web/views/login.html?execution=e1s1#

You will need your PPS number as well as the property’s ID and PIN. If you don’t have these, you can have them sent to you by post or to your MyAccount or ROS Inbox if you are registered for those.

Screenshot of the Local Property Tax log-in page

Once you do log in, the properties for which you are responsible to pay the LPT (the properties that you own), will be listed in your account. As of the time of writing, for properties currently liable for the tax, it’s business as usual i.e. you can’t update your band into one of the new bands and for properties that are new to LPT (those built since 2013), while they are showing in your account, there is no way to set the value or to select a band. Presumably this functionality will be added for both property types closer to November 2021, the date on which all properties will need to set their bands for 2022 onward.

All the properties that you own as well as the outstanding balance, payment history & preferred payment method are all visible in your account

Do I have to Pay All at Once or Can I Pay in Installments?

When you log into your LPT account, you can select your preferred payment method as well as print off a statement of your account (required when selling the property). You can choose to pay in monthly installments which makes the annual bill more manageable or pay it all in one go.

When you log into your account, you can choose your preferred payment method

Would You Like Help Valuing Your Property for LPT Purposes?

Valuing your property can be a daunting process. Undervaluing your property can have negative unforeseen consequences when you go to sell the property if the Revenue disputes the value used to calculate the liability.

Auctioneera’s LPT Property Valuation gives you a professional estate agent’s value of your property to give you peace of mind when deciding on your property’s valuation.

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