In 2024, the maximum property tax rates will increase. The final decisions belong to local governments and it is councilors who decide whether apartment and land owners will pay more. Some cities and communes have already made decisions on this matter and it is clear that the majority decide to increase rates.
Every year Ministry of Finance publishes an announcement with maximum real estate tax rates. The last word belongs to city and commune councils, which adopt resolutions on this matter. TVN24 Biznes’s analysis shows that many of us will have to face pay rises.
What determines the amount of real estate tax?
The upper limits of real estate tax rates for land and buildings are indexed each year on the basis of data published by the president of the Central Statistical Office.
According to the information from the July announcement of the President of the Central Statistical Office, the price index of consumer goods and services in the first half of 2023, compared to the same period of the previous year, was 115.0. So prices increased by 15%. Every year. The maximum local tax rates will increase by this amount.
Property tax. Maximum rates for 2024
Real estate tax is paid, among others, by owners of land, apartments, buildings or parts thereof that are related to running a business. This obligation lies with persons who own real estate, as well as perpetual usufructuaries and, in some situations, also owners of dependent real estate or parts thereof owned by the State Treasury or a local government unit.
Maximum real estate tax rates for 2024 for:
- land related to running a business – PLN 1.34 per 1 m2 of area (in 2023 it was PLN 1.16),
- buildings or their parts related to running a business – PLN 33.10 per 1 m2 of usable area (in 2023 it was PLN 28.78).
In the case of an apartment the current maximum real estate tax rate is PLN 1 per m2. Next year will increase to PLN 1.15.
What increases are local governments planning?
Many local governments have already published resolutions on the real estate tax rates, which are to apply from January 1, 2024.
Many of them decided to introduce the highest possible rates. Reason? The justifications for the projects included: inflationthe need to finance investments, and changes in the tax system introduced by the government PISwhich resulted in a reduction in local government revenues.
Some resolutions have not been voted on yet. Such a situation is, among others, in Warsaw. Interestingly, in recent years they were published on November 17 and 18. However, as the press department of the city hall informed us, “the resolution on determining the real estate tax rates for 2024 has not been adopted yet.”
Maximum property tax rates are mainly the domain of large cities. They were used, among others, in Wrocław, where after inflation correction the rates will look as follows:
– PLN 10 for other land (change from PLN 0.61 to PLN 0.71), – PLN 15 for residential buildings (change from PLN 1.00 to PLN 1.15), – PLN 18 for land related to running a business (change from PLN 1.16 to PLN 1.34), – PLN 4.32 for buildings related to running a business (change from PLN 28.78 to PLN 33.10).
At such rates, the property tax for the owner of a 55-meter apartment would increase by approximately PLN 13.
In these smaller centers, the authorities try to take into account the level of wealth of their residents. This does not mean that there will be no raises.
For example, in Kluczbork, the increase in the rate in the case of land related to running a business is only 7 groszy, and in the case of apartments it is 5 groszy per square meter. These are the smallest increases in property tax rates among the cities we analyzed.
Out of 14 local governments that we took a closer look at, we recorded increases in the property tax rate in 12 of them. Only in two cases – in Tarnów and Kielce – councilors rejected the proposal of the mayor and the president, respectively, to implement the increases.
Of the 12 cities that introduced increases, as many as 6 of them decided on the maximum possible rates determined by the Ministry of Finance. These are cities such as Wrocław, Poznań, Kraków and Gdańsk.
An interesting fact is Świdnik, where from 2020 to 2023 the same rates were still in force. However, the councilors decided to raise them this year. Hence the increase, compared to cities where property taxes were increased annually, is quite dramatic. For example, the tax rate on apartments increased by 22 groszy, and in the case of a building or its part related to running a business activity, by as much as PLN 6.5.
Main photo source: Damian Lugowski / Shutterstock.com