A new cap is being introduced for property tax increases in Turkey. After public reaction to assessment commissions raising values up to tenfold in some regions, the government has finalized its work on a new regulation. According to information obtained by EKONOMİ, a provision will be added to the upcoming omnibus bill that sets an upper limit on property tax increases.
The main option is a cap of 50 percent, with another option allowing up to 100 percent. In the following three years, taxes will continue to rise at half of the annual revaluation rate, as currently practiced.
Findings completed and years reviewed
The framework for how future property value increases will be calculated has been outlined. The draft is expected to be finalized soon and brought to Parliament, where it will be added to the omnibus bill for debate. After complaints from citizens about excessive tax hikes, President Recep Tayyip Erdoğan instructed the AK Party to conduct field research over the summer. Local Government Administration compiled detailed reports from various regions, identifying causes of extreme valuations and discrepancies between plots of similar value. Data from 2021 to 2025 was reviewed. A two-article framework for the upcoming four-year tax plan was presented to President Erdoğan during the MYK meeting.
A new formula based on past data
Using reports from local administrations, the AK Party developed a new formula by reviewing property tax practices from 2021 to 2025. The main proposal is to set a ceiling for post-2026 increases. A four-year valuation plan covering 2026 to 2029 will be determined. Ensuring the long-term stability of the selected rate is also part of the discussion.
The aim is to close the gap between market values and official assessed values in favor of citizens. The regulation mirrors a similar law enacted in 2017. Under the new system, a fixed rate will apply from 2026 to 2029, and annual increases will follow half of the revaluation rate. For example, if someone pays 1000 TL in 2025 and the cap is set at 50 percent, the tax becomes 1500 TL in 2026. If the revaluation rate is 30 percent in 2027, the tax rises by 15 percent and becomes 1775 TL.
How the current system works
In Turkey, property taxes are determined every four years by Valuation Commissions formed under the Property Tax Law and the Tax Procedure Law. The commission consists of seven members representing the municipality, treasury, land registry, chamber of commerce, and the local headman. They set property values based on market changes. For the remaining three years, taxes increase at half of the revaluation rate.
Presidential authority can override the need for legislation
Under current law, the President has the authority to freeze the reassessed values for a given four-year period, meaning he could limit increases solely to half of the revaluation rate without passing a new law.
Where the tax revenue goes
Property tax revenue goes entirely to district municipalities. Contrary to public belief, metropolitan municipalities do not receive a share, and none of it is transferred to the central budget.
Who sets the values?
Valuation commissions are composed of municipal representatives and central government officials. Their structure has been a subject of political debate, as they hold the authority to determine the taxable value of land and buildings.
Taxes and fees linked to property valuations
Property valuations directly affect several other taxes and fees, including
Valuable Residence Tax
Title Deed Fee
Stamp Tax
Inheritance and Transfer Tax
Cultural Heritage Preservation Contribution
Income Tax related to property sales and rental income
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