Property Tax — Rates and Reliefs for Landlords in 2026

Property Tax — Rates and Reliefs for Landlords in 2026

Property tax is one of the fundamental fiscal obligations that rental apartment owners in Poland must contend with. The year 2026 has brought certain changes in maximum rates and new tax relief opportunities that are worth knowing and making good use of. In this article, we discuss the property tax system in the context of rental property in detail, present current rates, and explain how to legally optimise your tax obligations.

Property Tax Basics

Property tax is a local tax, the rates of which are set by the municipal council within the maximum rates determined by the Minister of Finance. This tax applies to owners, perpetual usufructuaries, and possessors of real estate. In the case of rental apartments, the taxpayer is always the owner, regardless of whether the property is currently let.

Property tax should be distinguished from income tax on rental revenue — these are two separate tax obligations. Property tax is levied on the mere fact of property ownership, whereas income tax relates to rental income earned.

Maximum Property Tax Rates in 2026

Maximum property tax rates for 2026 have been increased by the inflation index compared to the previous year. The key rates affecting landlords are as follows:

• Residential buildings — the maximum rate is PLN 1.19 per 1 m² of usable floor area (up from PLN 1.15 in 2025)
• Buildings associated with business activity — the maximum rate is PLN 33.10 per 1 m² of usable floor area
• Land associated with business activity — the maximum rate is PLN 1.38 per 1 m²
• Other land — the maximum rate is PLN 0.71 per 1 m²

It is worth noting that the actual rates applied by individual municipalities may be lower than the maximum rates. Each municipal council independently sets rates for its area, so landlords should check their council's resolution regarding rates for the given year.

The Key Issue — Rental Property and Business Activity

One of the most important aspects of property tax for landlords is the classification of the premises. If an apartment is rented as part of a registered business activity, it may be classified as a building associated with business — and this means a drastically higher tax rate (more than 27 times higher than for residential buildings).

However, the legal situation is more complex than it might appear:

• Private rental (without business registration) — if you rent an apartment as a private individual and report rental income under the flat-rate tax, the premises retain their residential building status and are subject to the lower property tax rate.
• Rental within a registered business — if rental is conducted as part of a registered business, there is a risk of the higher rate being applied. However, court rulings indicate that the mere fact of running a business does not automatically trigger the higher rate — the actual use of the building is decisive.
• Mixed-use buildings — if part of a building is used for residential purposes and part for business, tax is calculated proportionally based on the floor area dedicated to each purpose.

If you have doubts about the classification of your premises, it is worth consulting a tax adviser to avoid potential issues with tax authorities.

Tax Reliefs and Exemptions Available in 2026

The year 2026 has brought several significant relief and exemption opportunities from property tax that rental property owners can take advantage of:

• Thermal modernisation exemption — municipalities may pass exemptions from property tax for building owners who have carried out thermal modernisation. The exemption can cover a period of up to 5 years and apply to part or all of the tax. Check whether your municipality has introduced such a measure.
• Renewable energy installation relief — some municipalities offer reduced property tax rates for buildings equipped with renewable energy sources (photovoltaic panels, heat pumps).
• Accessibility exemption — buildings that have undergone modernisation to improve accessibility for people with disabilities may qualify for municipal exemptions.
• Revitalisation area exemptions — properties located in areas covered by revitalisation programmes may benefit from exemptions or reduced rates, particularly if the owner invests in building renovation.
• Heritage building exemptions — maintaining buildings entered in the heritage register remains grounds for property tax exemption, provided they are kept in proper condition.

Income Tax on Rental — Forms of Taxation

In addition to property tax, landlords must account for income tax on rental revenue. In 2026, the following forms of taxation are available:

• Flat-rate tax on recorded revenue — this is the only form of taxation for private rental since 2023. The rate is 8.5% on revenue up to PLN 100,000 and 12.5% on the excess above that amount. It is straightforward but does not allow deduction of revenue-generating costs.
• General rules (tax scale) — available for those conducting rental as a registered business. Rates are 12% and 32% (above the PLN 120,000 threshold). They allow cost deductions, including depreciation, renovations, and loan interest.
• Flat-rate income tax — a 19% rate for rental within a registered business. Favourable with higher revenues and lower costs.

Deductible Expenses — What Can You Claim?

For landlords on general rules or flat-rate income tax, correctly accounting for deductible expenses is crucial. The most common claimable costs include:

• Property tax
• Property management fees
• Renovation and repair costs
• Property insurance
• Mortgage interest
• Advertising and tenant search costs
• Legal and accounting service costs
• Property depreciation (subject to restrictions introduced from 2023)
• Costs of rental management platforms and tools

Proper cost documentation is essential for tax optimisation. The Brokik platform helps maintain records of rental income and expenses, facilitating tax settlements and minimising the risk of errors.

Deadlines and Formal Obligations

Rental property owners should keep several key deadlines and formal obligations in mind:

• Property tax declaration — individuals submit a property information form (IN-1) within 14 days of the tax obligation arising (e.g., property acquisition). Tax is payable in instalments: by 15 March, 15 May, 15 September, and 15 November.
• Rental income reporting — when choosing the flat-rate tax, the first payment is treated as selecting this form of taxation. There is no need to submit a separate declaration.
• Annual settlement — the annual tax return (PIT-28 for flat-rate, PIT-36 or PIT-36L for business) must be filed by 30 April of the following year.
• Revenue records — for flat-rate tax, recorded revenue records are mandatory. For business — a full income and expense ledger or accounting books.

Tax Optimisation — Practical Tips

Legal tax optimisation is every taxpayer's right. Here are some practical tips for landlords:

• Choose the right form of taxation — analyse which form is most beneficial in your situation. The flat-rate is simpler but does not allow cost deductions. With high costs (renovations, mortgage), a registered business may be more advantageous.
• Document all expenses — collect and store invoices for renovations, repairs, materials, management services, and other rental-related expenditures.
• Check local reliefs — contact your municipal office to learn about available property tax reliefs and exemptions.
• Plan renovations strategically — if you are on general taxation rules, spreading renovations over time allows tax burden optimisation across individual years.
• Use record-keeping tools — systematic income and expense tracking using a platform like Brokik makes annual tax settlements easier and minimises the risk of overlooking important costs.

Common Tax Mistakes by Landlords

Knowing the most common mistakes makes them easier to avoid. Here are issues landlords should pay particular attention to:

• Failure to report rental income — not taxing rental income is a serious fiscal offence that can result in a fine and the obligation to pay back taxes with interest.
• Incorrect premises classification — wrongly determining whether the property is subject to the residential or business property tax rate.
• Lack of expense records — incomplete documentation prevents cost deductions and creates problems during tax audits.
• Overlooking deposits in settlements — the tenant's security deposit is not income when received but becomes income if retained as compensation for damages.
• Incorrect utility accounting — rental income includes the full rent amount, including utility charges, even if they are passed on to suppliers.

Summary

Property tax and rental income tax are significant cost elements of running a rental business that require a systematic approach and good organisation. Knowledge of current rates, available reliefs, and tax optimisation opportunities allows landlords to maximise rental profits while maintaining full regulatory compliance.

The key to effective tax obligation management is systematic documentation of income and expenses. The Brokik platform supports landlords in this process, offering financial record-keeping tools, report generation, and documentation management. This makes annual tax settlement simpler and significantly reduces the risk of errors and oversights.