Tax for a shed higher than for a house? There are more tax absurdities

The Commissioner for Human Rights (Ombudsman) has his hands full. The number of complaints received from residents who feel aggrieved by the way local taxes are calculated is increasing. At the end of last year, the Commissioner for Human Rights intervened in the matter of the fence tax, and at the beginning of this year there was another intervention – this time in the matter of real estate tax. Meanwhile, there is no shortage of absurdities related to this tribute. It’s not just the rates that are questionable, but one by one.

The Commissioner for Human Rights intervenes in tax matters

More specifically, regarding the real estate tax that citizens are complaining about.

– However, the mentioned complaints do not concern the taxation of residential properties (houses and premises), but other buildings. To put it simply: it is a situation in which the tax for a garden shed exceeds the levy paid by the owner of a quite large house – explains Andrzej Prajsnar, an expert at the RynekPierwotny.pl portal.

Experts from the RynekPierwotny.pl website point out that this is not the only example of absurdities related to the current real estate tax. There are definitely more problematic aspects, and the tax itself, according to experts, definitely deserves amendment. And a solid one at that.

Is a shed more expensive than a house?

To begin with, it is worth noting that the topic recently raised by the Commissioner for Human Rights is by no means new.

– This is an example of one of those issues that taxpayers simply get used to over time. However, habit does not change the fact that the situation is strange. Therefore, the Ombudsman intervened in response to the complaint of a citizen from Olsztyn. In addition to the house, like many other Poles, he has a farm building on his plot used to store various types of equipment and devices. A resident of Olsztyn asked the Commissioner for Human Rights why in 2024 he had to pay a tax of PLN 1.15/sq m for a house, and as much as PLN 11.17/sq m for a farm building – explains Andrzej Prajsnar.

Why such a difference? As the expert explains, it results from the fact that the farm building has been classified as the so-called the remaining building was subject to real estate tax, while the house was subject to a preferential housing tax rate.

– In the case of rates for 2026, the difference in amounts is even greater, because the maximum amount of real estate tax set by the minister is PLN 1.25/sq m (residential buildings) and PLN 12.00/sq m (other buildings), respectively – points out Prajsnar.

He notes that the Ministry of Finance and Economy, in response to the Commissioner for Human Rights, pointed out that in 2025 only 9 percent municipalities adopted the tax rate for other buildings at the maximum level (without additional differentiation).

– According to the ministry, most municipalities apply lower tax rates than other buildings (e.g. PLN 8/sq m) justifies the lack of legal changes. Will everything stay as it is for now and will the municipalities have the deciding vote? You can assume so – says an expert from the RynekPierwotny.pl portal.

Parking space issue resolved?

Prajsnar points out that the Ministry of Finance in its letter (reference number: DPL2.055.3.2025) reminded the Ombudsman about the change, which is effective from January 1, 2025. This is about statutory unification of the taxation rules for people who own a garage space – both in a room that is a common part of a block of flats and in a separate commercial premises. In both cases, the preferential housing tax rate per 1 square meter currently applies.

This is the result of changes introduced after the judgment of the Constitutional Tribunal of October 18, 2023 (SK 23/19). However, as experts from the RynekPierwotny.pl website emphasize, solving one problem does not mean the end of all disputes. Now owners of detached garages are starting to demand a ten times lower rate.

Former farmers also complain

Problems with property tax also affect rural residents. They are particularly felt by former farmers, often older people, who, after losing their agricultural exemption, have to pay high tax on large buildings, such as barns or farm buildings.

– Former farmers as owners of such buildings, after losing the agricultural exemption, pay tax determined at the rate for other buildings (sometimes PLN 10 – PLN 12/sq m). The National Council of Agricultural Chambers intervened to address this problem in 2020, but the Ministry of Finance did not see any justification for legal changes at that time, notes Prajsnar.

Real estate tax has its own definition of square footage

RynekPierwotny.pl analysts also point out one more issue that may cause difficulties for taxpayers. In the case of real estate tax, there is a separate definition of usable area. Therefore, the square footage taken for tax purposes does not always have to be the same as that indicated in the notarial deed or construction documentation.

– This means that the new owner of a house or premises, when submitting the IN-1 form, should not provide the usable area from the notarial deed or construction design. However, the question arises as to what proportion of taxpayers make special measurements, since the IN-1 form must be submitted within two weeks of purchasing the apartment. During this period, the taxpayer focuses on the move rather than on the additional dimensions of the apartment or house, notes Prajsnar.