Chapter 10 of 10 · After you buy · 2 of 6
Local Property Tax when you buy a home
Checked 21 Oct 2026the Central Bank's mortgage measures, Revenue's rules and the scheme operators' published terms.
LPT after you buy: when your liability starts, valuing your home, paying by deduction or direct debit, and new-build exemptions.
Written in plain English for the person buying, selling or switching. This guide covers the Republic of Ireland only.
Local Property Tax, or LPT, is a yearly tax on the value of your home, paid to Revenue and passed to your council. When you buy, the tax does not start on the day you get the keys. This guide explains when your liability starts, how the home is valued, how to pay, and what happens with a new build.
What LPT is
Local Property Tax is charged on every home in Ireland under the Finance (Local Property Tax) Act 2012 as amended. Revenue collects it, and the money goes to local councils. The charge depends on the band the home's value falls into. See the glossary for the terms here.
The current period runs from 2026 to 2030. Every home was valued as at 1 November 2025, and that valuation stays for the five years. The bands run from €95 a year for a home worth up to €240,000 to €3,110 for a home worth up to €2.1 million. Our LPT bands guide lists all 19.
When your liability starts
The rule is simple. Whoever owns the home on 1 November pays the tax for the following year.
So:
- If you own the home on 1 November 2026, you pay the 2027 charge.
- If you buy in March 2027, the seller owned it on 1 November 2026 and is liable for all of 2027.
- You become liable on 1 November 2027, for 2028.
What happens at closing
By custom, the two solicitors split the year's charge at closing. If you buy in March 2027, you pay the seller back for the nine months of 2027 you own the home. The amount appears on your closing statement. It is a small sum, a few hundred euro at most.
Your solicitor (check the Law Society's register) also asks the seller's solicitor for confirmation that LPT is paid up to the date of sale. A home cannot be sold with LPT owing without the buyer taking on the debt, so this check matters. See what a conveyancing solicitor does.
The valuation
The home's band was set by the previous owner as at 1 November 2025. It stays with the home until the next valuation date in 2030, whatever you paid. You do not revalue when you buy.
That cuts both ways. If the seller put the home in a band below its value, Revenue can ask about it at the sale. The sale price is on the stamp duty return, which Revenue sees. Where the price is well above the band, your solicitor may need to get the seller to explain the difference or to correct the band before closing.
If you want to check the band, use Revenue's valuation tool, the Property Price Register for matching sales around November 2025, or the figure your lender's valuer gave.
How to register as the new owner
Revenue updates the LPT record from the stamp duty return your solicitor files. Once the sale is registered, the home appears under your own tax number in Revenue's LPT online service, with its property ID and band.
If it does not appear within a couple of months, contact Revenue with the property ID, which the seller's solicitor passes on at closing. You cannot pay until the home is linked to you.
How to pay
You choose a payment method through Revenue's LPT online service for each year. The options are:
| Method | How it works |
|---|---|
| Single payment | Debit or credit card, or an annual debit instruction from your bank account on a date Revenue sets |
| Monthly direct debit | Twelve equal payments across the year |
| Deduction at source | Taken from your salary, your occupational pension, or certain social welfare payments |
| Cash | In instalments through a payment service provider |
Deduction at source and direct debit carry on from year to year until you change them. A single payment has to be made each year. Revenue's page gives the dates for the current year.
If you pay by deduction from salary, your employer sees only the amount, not the band.
Your council's adjustment
Each council can raise or lower the charge for its area by up to 15%. In 2026 Dún Laoghaire-Rathdown lowered it by 15% and Cork City raised it by 12%. Most councils had not yet entered a factor when we checked on 21 October 2026. The LPT calculator applies your council's factor, and the county pages show it.
A worked example
You buy a home that the seller valued at €350,000 as at 1 November 2025. That is band 3, with a basic charge of €333.
| Council | Adjustment | Charge for the year |
|---|---|---|
| Most councils | None | €333 |
| Dún Laoghaire-Rathdown | Minus 15% | €283 |
| Cork City | Plus 12% | €373 |
New builds
The old exemption for new homes ended in 2021. A home finished after 1 November 2025 becomes liable from the first 1 November after it is finished and lived in. You value it as at 1 November 2025, as if it had existed then, and pick the band.
For a new build bought from a builder, that means:
- You close in 2027, and the home was finished in 2027.
- You are the owner on 1 November 2027, so you are liable for 2028.
- You register the home with Revenue and choose its band yourself.
Check Revenue's page for the detail, as the rules for homes finished during the period carry conditions.
Deferrals and exemptions
Revenue allows some owners to defer the tax, with interest, where income is below a threshold. A few exemptions remain, for homes with pyrite or mica damage certified under the schemes, and for some other cases. The thresholds and the list are on Revenue's page. Deferred tax is a charge on the home and must be paid when it is sold.
What LPT means for your yearly budget
LPT is one of the yearly costs of owning. At the €396,000 national median, the band 3 charge of €333 is about €28 a month. Our guide on the cost of owning a home puts it beside the mortgage, the insurance and the rest.
Where this leaves you
Find your band and your council's adjustment in the LPT calculator, and note 1 November as the date that decides who pays. If you are still buying, the first-time buyer journey shows where LPT sits in the closing process, and get quotes finds a solicitor to handle the confirmation at closing.
Questions people ask
Who pays property tax when a house is sold in Ireland?
Whoever owns the home on 1 November pays the tax for the following year. The seller's solicitor confirms the tax is paid up to the sale. By custom the solicitors split the year's charge between seller and buyer at closing.
When do I start paying LPT after buying a house?
From the first 1 November after you buy. If you close in March 2027, the seller is liable for 2027 and you become liable on 1 November 2027 for 2028. Your solicitor usually arranges a share of the 2027 charge at closing.
Do I need to value my house again for LPT when I buy it?
No. The band set by the previous owner at 1 November 2025 stays with the home until 2030. If the home was not valued, or was finished after that date, you value it as at 1 November 2025 yourself.
How do I pay Local Property Tax?
Through Revenue's LPT online service: a single payment, a monthly direct debit, or a deduction from your salary, pension or social welfare payment. You choose each year, and the choice stays until you change it.
Is a new build exempt from LPT?
Not any more. A home finished after 1 November 2025 becomes liable from the first 1 November after it is finished and lived in, valued as at 1 November 2025. The old exemption for new builds ended in 2021.