Property tax deadline looms: how much do you owe?

It’s property tax time again, with Revenue calling on homeowners across the country to get their affairs in order.

This year the “chargeable” date is November 1st, which means that if you own a property in Ireland as of next Tuesday, you will be liable to pay property tax for the following year. If you sell your residential property after this date, you will still be liable to pay LPT on the property for 2017, even if it is sold before the end of 2016.

But has your bill changed this year? And do you have to do anything to comply with Revenue rules?

Has my bill gone up or down?

It depends on where you live. While properties won’t be revalued until October 31st 2019, at which point most homeowners can expect a significant rise given the trend in house prices, some councils have voted to increase the basic rate of LPT for 2017.

Indeed, while 23 councils will apply the basic rate of LPT in 2017, and five have a reduced rate again, three have actually increased it.

Last year, residents of four Dublin councils (Fingal, South Dublin, Dún Laoghaire-Rathdown and Dublin City) had a 15 per cent drop in their property tax bills, and these councils have again voted for this cut in 2017. This means that a Dublin resident, who last year paid a reduced rate on a property valued in the €400,000-€450,000 band, will again enjoy a 15 per cent decrease, paying €650 instead of €765. Longford County Council has also decided to keep its cut of 3 per cent for 2017.

However elsewhere some homeowners will face a hike in their bill for the first time. Six counties, for example, which last year reduced property tax, have decided to levy the basic rate (0.18 per cent) for 2017, which means homeowners in the counties of Clare, Kildare, Louth and Monaghan, and Cork city and county, should expect an increase.

Moreover, residents of Limerick city and county, and Wexford and Galway counties all face a hike, of 10 per cent above the basic rate for both Limerick and Galway, and 5 per cent in Wexford.

According to Public Policy, this is the first time that councils have voted to apply a higher rate of LPT relative to the basic rate, and could worry residents in other counties who have yet to see a hike. The move means that someone, living in Limerick, who paid tax of €405 on their house valued in the €200,000-€250,000 range, will have to pay €445 in 2017. If they had been living in Dublin city, their bill would have been €344.

You can find out how much you owe, and how much your bill might have changed, here.

Do I need to do anything?

That depends on how you’ve paid your tax so far. If you usually pay your bill in a lump sum (ie single debit authority, debit card, credit card, cash, cheque or postal order), you have some time to get organised, as the deadline is January 11th 2017. If you opt to pay via a “single debit authority”, via your bank account, Revenue won’t deduct the money from your account until March 21st, 2017.

If however, you opt to pay the tax in installments, you will need to notify Revenue before November 25th of your intention. You will probably have received a letter from Revenue by now, outlining your options, and any adjustments to the amount you owe. You can confirm your payment method online, or by contacting the LPT helpline at 1890 200 255.

I haven’t received a letter

If you pay the tax by direct debit, don’t expect to hear from Revenue, unless your local council voted to change your tax rate. Instead, this method of payment will automatically apply for 2017 – unless you wish to change it.

If so, you need to let Revenue know by November 25th, if you wish to opt for another form of phased payment, or January 11th, if you wish to pay in a lump sum. Again, you can do this online or via the helpline above.

I’m a first-time buyer – what should I do?

If, as outlined above, you are the owner of a property as of November 1st, you will need to register for property tax. You can apply online to have your property ID and PIN issued to you, or via the above helpline.

I didn’t pay the tax last year – am I still exempt?

If your property was exempt from property tax up until now – maybe because you bought it in 2013, or it was in a ghost estate, it’s likely that it will continue to be exempt until the end of the current valuation period (October 31st 2019), even where the property is sold or ownership is transferred by way of gift or an inheritance.