Some will pay lower taxes. This is the result of the Constitutional Tribunal’s ruling
Property taxes will increase less in 2025 than in the current year, thanks to a much lower inflation rate in the first half of the year. Owners of parking spaces in garages in apartment blocks have reasons to be happy. Some of them will pay lower taxes, which is the result of the Constitutional Tribunal’s ruling.
The Minister of Finance’s announcement regarding the upper limits of local tax and fee rates for 2025 has been published in Monitor Polski. They are approximately 3 percent higher than this year’s rates.
Maximum property tax rates
Maximum rate pProperty tax for residential buildings will increase from PLN 1.15 to PLN 1.19, while for land under such buildings – from PLN 0.71 to PLN 0.73 per m2. The increase in local fee rates will not have as large an impact on the financial burden of households and entrepreneurs as in 2024. Taxes will increase, but not as significantly as in the last 2 years.
– In 2024, the tax rates for owning residential properties increased by PLN 0.15, in 2025 they will be increased by PLN 0.04 per square meter. On the other hand, for properties used for business purposes this year they increased by PLN 4.32, and next year they will increase by PLN 0.90 per square meter. After this correction, the new tax rates in 2025 will be PLN 1.19 and PLN 34.00 per square meter, respectively –assessed Piotr Juszczyk, Chief Tax Advisor at InFakt.
Ultimately, local governments make decisions on rates.
It is worth emphasizing that the announcement specifies the highest possible rates, and ultimately it is local governments that decide on their specific amount. In cities with high financial burdens, such as Warsaw, Wrocław or Gdańsk, these rates are already at the maximum level in 2024.
– The Polish Deal has limited local government revenues from income tax, but on the other hand, changes in this area are being prepared. The Ministry of Finance estimates that local government revenues after the introduction of the new act will increase by PLN 16 billion in 2025 compared to the current system – added Juszczyk.
Garage Tax in 2025
The tax rate for a parking space in a garage depends on its legal status. If it is a separate property, it is subject to taxation at the rate applicable to “other” buildings – in 2024 it does not exceed PLN 11.17 per m2. It is a different matter if the parking space belongs to the apartment – then it is taxed at the same rate as the apartment. This solution is much more beneficial for taxpayers.
Soon, owners of parking spaces will not have to remember what the status of a parking space is. The Constitutional Tribunal has questioned the application of differentiated property tax rates that owners of garage spaces in multi-family buildings must pay. The entry into force of this ruling, which is beneficial from the point of view of residents, has been postponed for a year, so it is not until 2025 that owners of garage spaces with separate ownership will pay the rate for an apartment. To meet their needs, councilors of several cities have already introduced identical tax rates for garage spaces this year – without differentiating status. Such a move was decided, among others, in Rzeszów.