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Property tax in 2023. Increases in 92 percent of municipalities

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In 2023, the real estate tax was increased by as many as 92 percent of Polish municipalities. After the Ministry of Finance introduced a new maximum possible rate, many local governments decided to introduce it. The tribute goes entirely to local budgets.

In the latest issue of its weekly, the Polish Economic Institute looked at the issue of property tax increases. According to the PIE analysis up to 92 percent municipalities decided to increase this year. For comparison, in 2022, 88 percent did so. local governments, and in 2021 70 percent.

The real estate tax supplies the budgets of communes

According to the analysts of the institute increased inflation encouraged local governments to update the taxation value in order to maintain budget revenues in a similar proportion to previous years. At the same time, the real estate tax is the most important local tax, the proceeds of which fully support the budgets of communes.

The maximum real estate tax rate in Poland in 2023Polish Economic Institute

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According to the PIE analysis, the growth rate of real estate tax in communes in 2023 was on average double-digit. “Nationwide, the tax on residential buildings is on average PLN 0.82/m2, buildings for business – PLN 24.42/m2, and land for business – PLN 1.02/m2. This means an increase in rates by: 11, 6%, 10.3% and 11.3%

Two municipalities with a symbolic tax

Is that Ministry of Finance an increase in the maximum tax rates does not mean that municipalities will apply them automatically. They have the right to independently decide the amount of local taxes.

PIE points out that there are two communes in Poland, Mielnik (Podlaskie Voivodeship) and Wierzbica (Mazowieckie Voivodeship), where residents pay exceptionally low taxes. Only 1 grosz for each meter of a residential building. In turn, the lowest rate for entrepreneurs is in Lipnica Wielka (Małopolskie Voivodeship), where the rate for development is PLN 9.2 per sq m.

Main photo source: Shutterstock

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