The properties of LiHoF$_4$ are believed to be well described by a long-range dipolar Ising model. We go beyond mean-field theory and calculate the phase diagram of the Ising model in a transverse field using a quantum Monte Carlo method. The relevant Ising degrees of freedom are obtained using a non-perturbative projection onto the low-lying crystal field eigenstates. We explicitly take the domain structure into account, and the strength of the near-neighbor exchange interaction is obtained as a fitting parameter. The on-site hyperfine interaction is approximately taken into account through a renormalization of the transverse applied magnetic field. Finally, we propose a spectroscopy experiment to precisely measure the most important parameter controlling the location of the phase boundary.
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