Barry Ward (Dún Laoghaire, Fine Gael)
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455. To ask the Minister for Finance the position regarding any consideration or review ongoing into creating allowances for people that live in properties that have increased significantly in value relative to their income and are not in a position to afford local property tax; and if he will make a statement on the matter. [58021/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Finance (Local Property Tax and Other Provisions) (Amendment) Act 2025, signed into law in July, provides for a number of changes to the structure of Local Property Tax (LPT). These changes will apply for the upcoming valuation period 2026-2030. The Act provides for a widening the valuation bands by 20%, which will ensure that an estimated 93% of properties remain in their existing band. This will prevent a significant increase in liabilities for most households.

To support those that have difficulty in paying their LPT, 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.

The 2025 Act also increases the income thresholds for deferral of LPT for the upcoming revaluation period by between 30% and 40% depending on individual circumstances, as illustrated by the following table:

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.

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 at (01) 7383626 from Monday to Friday, 09.30 to 16.30.

By keeping the tax base broad, with a limited number of exemptions and deferral criteria, we ensure that the amount of LPT charged remains at a fair level overall. A decision to exclude a number of taxpayers from the LPT base would lead to increased charges for the remaining liable taxpayers, or a corresponding shortfall in funding for local authorities.