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The Residential Zoned Land Tax (RZLT) came into effect on 1 February 2025. This effectively replaces the Vacant Site Levy.
RZLT overview
The RZLT is part of a broader effort to encourage the use of zoned land for housing development. This tax applies to residentially zoned sites that remain undeveloped. There have been various changes made to this legislation recently to address some of the challenges identified by landowners and developers in undertaking residential development.
What are the key features?
The RZLT is part of a broader effort to encourage the use of zoned land for housing development. This tax applies to residentially zoned sites that remain undeveloped. There have been various changes made to this legislation recently to address some of the challenges identified by landowners and developers in undertaking residential development.
- The tax is charged annually at a rate of 3% of the market value of the land.
- The liability will be payable by 23 May of each year, beginning in 2025.
- RZLT will operate on a self-assessment basis and anyone who is liable to RZLT must register for the tax.
- The various local authorities will publish Residential Zoned Land Tax maps identifying land within the scope of the tax for 2025.
Exemptions from the RZLT
There are various exemptions from the RZLT including circumstances where a judicial review is ongoing where a planning appeal is ongoing or for 12 months after planning permission has been granted while a developer is preparing for construction. Property owners should examine the zoning status of their land on the most recent local authority maps.
It is worth noting that homeowners with land, garden or yards exceeding 1 acre may appear on the local authority maps but should not have to pay the RZLT where the property is also subject to the Local Property Tax (LPT).
However it will be necessary to register for the RZLT even where no liability arises. Revenue have extended the pay and file deadline for RZLT returns for 2025 to Friday 30 May 2025.
Contact our Private Client Services tax team if you would like to discuss the application of this tax to your property interests.
