/> Local Property Tax Deferral 2026: Defer LPT on Income Under €25,000 (€40,000 Couples) | The People's Pocket

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Home / Guides / LPT deferral

Deferring Local Property Tax on a low income

The short answerIf you own and live in your home and your gross income is €25,000 or less (€40,000 for a couple), you can defer all of your Local Property Tax; up to €40,000 (€55,000 for a couple) you can defer half. It isn't cancelled: 3% interest a year is added and it's paid when the house is sold.

Someone living on the State Pension alone is usually under the single limit. You can also defer after a sudden hardship like a job loss or big medical bill, during an insolvency arrangement, or after a death.

Quick facts

Full deferral, single
Income €25,000 or less
Full deferral, couple
€40,000 or less
Half deferral
€40,000 single, €55,000 couple
Mortgage before Nov 2020
Limit + 80% of interest
Interest
3% a year
Stays
A charge on the property

Deferral on income

The 2026 limits for owner-occupiers, full and half deferral: "Single, no mortgage €25,000 €40,000 Couple, no mortgage €40,000 €55,000". "If you have an outstanding mortgage, taken out before 1 November 2020, the income threshold is increased by 80% of your gross mortgage interest payments."

Gross income counts almost everything. "It includes income that is exempt from income tax and income from Department of Social Protection (DSP) payments, but it does not include Child Benefit."

Other reasons to defer

Hardship, where "You have had an unexpected and unavoidable significant loss or expense and As a result, you are unable to pay LPT without too much financial hardship", such as emergency medical costs, urgent repairs or losing your job.

"If you have entered into a Debt Settlement Arrangement or a Personal Insolvency Arrangement , you can apply for a deferral of LPT while the insolvency arrangement is in place." Executors can also defer after a death, for up to 3 years.

It's a delay, not a write-off

"However, this does not mean that you are exempt from the LPT . Interest is charged on the deferred amount, and the deferred amount remains a charge on the property." "The rate of interest charged on all deferred amounts from 1 January 2022 is 3% per year."

You can pay off some or all of it at any time. "If you claim a deferral for a year and your circumstances change you must inform Revenue."

How to apply

Claim an income deferral on your LPT return, or later through myEnquiries or by post. Other deferrals use form LPT2. Revenue's LPT line is +353 1 738 3626.

Common questions

Can pensioners defer Local Property Tax?

Yes, if gross income is €25,000 or less for a single person or €40,000 for a couple, for full deferral. Half deferral is available up to €40,000 or €55,000.

Is deferred LPT written off?

No. Interest of 3% a year is charged, and the deferred amount remains a charge on the property.

Does Child Benefit count as income for LPT deferral?

No. Child Benefit is not included, but other welfare payments are.

Can I defer LPT because of hardship?

Yes, after an unexpected, unavoidable significant loss or expense that means you can't pay without too much hardship. Use form LPT2.

Source: Citizens Information: Deferring payment of the Local Property Tax, read 1 October 2026. Every figure on this page is quoted from there. If it changes, this page is wrong until we fix it — tell us and we will.

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