At Adrian Hassett Auctioneers we believe that understanding the true cost of owning a home is just as important as agreeing the right price. Local Property Tax may not be the most exciting part of a property transaction, but the recent revaluation has reset the figures for the next five years, and it affects buyers and sellers in ways many people overlook. Here is what changed and what it means for anyone planning to buy or sell in 2026.
What has changed?
Homeowners were required to value their property as of 1 November 2025, and the valuation declared on their LPT return determines the charge for each year from 2026 to 2030. Under new legislation, the valuation period has been extended from four years to five, so the next revaluation will not take place until late 2030.
To reflect rising house prices, the valuation bands for 2026 onwards have been widened by 20 per cent. There are 19 bands covering properties valued up to €2.1 million, while owners of properties worth more than that must declare a specific market value. When the changes were announced, the Minister for Finance indicated that most owners would see increases of between €5 and €25, with the wider bands meaning most properties stay in the same band as before.
There is also a local element. Each local authority can increase or decrease the basic rate by up to 15 per cent, known as the Local Adjustment Factor. As a result, two identical homes in neighbouring counties can carry noticeably different LPT bills.
What it means for buyers
First, factor LPT into your running costs. It is easy to focus on mortgage repayments and forget the smaller annual charges, but they add up over time. Check which local authority the property falls under, as the Local Adjustment Factor will affect the final figure, and use Revenue's online calculator to estimate what you will pay.
Second, understand how the valuation works when a property changes hands. In general, the valuation declared as of 1 November 2025 applies to the property for the whole 2026 to 2030 period, even if it sells for a higher price in the meantime. That means your LPT is unlikely to jump simply because you have bought the home, which brings welcome certainty for budgeting.
Third, know when your liability starts. LPT is charged to whoever owns the property on 1 November each year, for the following year. If you complete your purchase during 2026, the seller will normally have been liable for the 2026 charge, and you will become liable from 2027 onwards, provided you still own the property on 1 November 2026.
Finally, make sure the seller is fully compliant. Your solicitor will check that LPT returns have been filed and payments are up to date, as unpaid LPT can become a charge on the property itself. Resolving any arrears before closing protects you from inheriting someone else's tax problem.
What it means for sellers
The most important step is to confirm that your LPT affairs are in order before you go to market. Non-compliance can lead Revenue to apply a 10 per cent surcharge on your income tax, corporation tax and capital gains tax liabilities, and can also affect your tax clearance. Missing returns or outstanding payments are also a common cause of delays between sale agreed and closing, so ask your solicitor to confirm the position early.
It is also worth remembering that your LPT valuation is not a market appraisal. Your valuation band was a self-assessment at a fixed point in time, and the price your home achieves today depends on current demand, condition and recent comparable sales. Revenue suggested owners could use its interactive valuation tool, the Property Price Register or a professional valuation when assessing their homes, and a professional appraisal from a local auctioneer remains the most reliable basis for setting an asking price.
If you have made improvements since 1 November 2025, such as an extension or a full renovation, these will not change your LPT charge during the current period, although they may well add to your sale price.
Exemptions and reliefs worth knowing
The 2025 legislation also broadened the exemption for certain homes damaged by defective concrete blocks, reflecting changes to the remediation scheme, and introduced a reduction of €105,000 in the chargeable value of properties adapted for people with disabilities. Deferral options are also available in certain circumstances, such as where income falls below set thresholds. If any of these may apply, it is worth checking the details with Revenue or a tax adviser.
The bottom line
The LPT revaluation brings modest increases for most homeowners and, thanks to the longer five-year period, greater certainty for those buying or selling. Buyers should factor the charge into their budgets and ensure compliance is confirmed before closing, while sellers should get their paperwork in order early and price their homes on today's market, not on their LPT band.
If you would like to discuss buying or selling a property, contact us on 0871303206 or email sales@adrianhassett.com or visit adrianhassett.com.
Disclaimer: This article is based on publicly available information and is intended for general guidance only. While every effort has been made to ensure accuracy at the time of publication, details may change and errors may occur. This content does not constitute financial, legal or professional advice. Readers should seek appropriate professional guidance before making decisions. Neither the publisher nor the authors accept liability for any loss arising from reliance on this material.
