Martin Daly (Roscommon-Galway, Fianna Fail)
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593. To ask the Minister for Finance if consideration will be given to amending the criteria for local property tax exemptions or reductions in cases where a person with a severe intellectual disability resides in a property purchased by a now-deceased parent, and where the property has not been specifically modified but is nonetheless the permanent residence of the individual, given the significant care needs and financial constraints involved. [47117/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Finance (Local Property Tax) Act 2012 (as amended) provides for an exemption from Local Property Tax (LPT) for properties that have been purchased, adapted or built for use by an incapacitated person, subject to the qualifying conditions for the relief. The exemption will only apply where the cost of the adaptations exceeds 25% of the market value of the property before it was adapted. Further detail on this exemption is available on Revenue’s website: www.revenue.ie/en/property/local-property-tax/lpt-exemptions/incapacitated-persons.aspx

The LPT legislation also provides for a reduction in the chargeable value for homes that have been adapted for use by a person with a disability. The policy objective of this provision is to ensure that homeowners with a disability, whose properties have realised an increase in value due to necessary adaptations having been made, are not liable for a higher LPT charge as a result of those necessary adaptations.

There is no specific exemption from the requirement to pay LPT for individuals with an intellectual disability where the property has not been specifically modified, though such persons may be entitled to an exemption on other grounds or may qualify for a deferral subject to meeting the qualifying conditions.

The LPT legislation provides for the possibility of deferring the charge to LPT in certain circumstances to assist individuals who may have difficulty paying the tax. A qualifying person may opt to defer, or partially defer, payment of the tax. Where a person qualifies for a full deferral then 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.

Currently, the income thresholds are €18,000 for a single person and €30,000 for a couple to qualify for a full deferral. The income limits to qualify for a partial deferral are €30,000 for a single person and €42,000 for a couple.

As part of the recently enacted Finance (Local Property Tax and Other Provisions) (Amendment) Act 2025, these income thresholds will increase from 2026. Next year, the income thresholds will be €25,000 for a single person and €40,000 for a couple to qualify for a full deferral. The income thresholds to qualify for a partial deferral will be €40,000 for a single person and €55,000 for a couple.

It is also possible to apply for a deferral on the grounds of hardship if 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. 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

Any property owners experiencing financial 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

Finally, property owners experiencing difficulties in meeting their LPT obligations can contact Revenue through MyAccount at www.revenue.ie or by calling the LPT helpline (01) 7383626.