New Regulation to Stop Exorbitant Increases in Property Tax

Government prepares to set a legal upper limit to prevent excessive real estate tax hikes

A long-awaited move is on the way to stop the excessive increases in property tax values determined by land valuation commissions for 2026. These valuations, which were posted at local municipalities and neighborhood offices in late June, shocked many property owners.

Homeowners who saw the numbers could hardly believe their eyes. The unit values used to calculate property tax were raised between 5 and 40 times, sparking widespread concern. Even more worrying, these inflated figures were also set to form the base for taxes in 2027, 2028, and 2029.

Property owners quickly rushed to learn the new rates, leading to heated debates and strong public backlash. The reason for the outrage was simple: the new valuations meant a property tax bill at least five to ten times higher than in 2025.

As expected, many property owners filed lawsuits between September 1 and 8, following the end of the judicial recess, and more legal challenges are expected by the end of the year. If no changes are made, the number of lawsuits could be record-breaking.

The government has responded to the rising criticism. Mustafa Demir, Deputy Chairman for Local Governments of Justice and Development Party, announced that under the instruction of Recep Tayyip Erdoğan, the situation is being closely monitored. He emphasized that they would not allow unrealistic property valuations to push citizens into financial hardship.

He explained that there were two main approaches being considered: putting a limit on land unit square meter values and capping the resulting property tax increase compared to current levels. Technical work on the new regulation is underway, and it is expected to be submitted to Grand National Assembly of Turkey before 2026.

The Ministry of Finance is also preparing a separate regulation to limit these sharp valuation hikes. This follows strong and persistent reactions from citizens across the country.

A similar step was taken in 2017 when a temporary law set a 50 percent limit on property value increases. A comparable cap is now being considered for 2026, allowing unit values to rise no more than 50 percent over the 2025 figures.

The new cap is expected to be included in the upcoming omnibus bill. This measure would not only affect property tax but also related costs such as the cultural heritage contribution fee, luxury property tax, title deed fees, and inheritance tax.

This legal ceiling aims to stabilize the property market, reduce legal disputes, and ease financial pressure on homeowners and investors ahead of the 2026 tax year.

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