Residential Property Tax Depreciation Calculator

The standard rate for residential buildings and apartments is 2.5% per year of the initial acquisition value, meaning full depreciation takes 40 years.

The initial value is the purchase price plus acquisition costs such as notary fees, agent commission and civil-law transaction tax (PCC). Land value is excluded — only the building or apartment is depreciated.

Since 2023, depreciation of residential apartments has been abolished for private rental income (flat-rate or progressive tax). Acquired rights apply: properties registered in the fixed-asset register before 1 January 2023 may continue depreciation under the old rules.

Acquired rights mean that if a taxpayer registered the property as a fixed asset before 1 January 2023, they may continue depreciating it at the same rate and rules. New residential properties entered after that date cannot be depreciated for private rental purposes.

The annual depreciation allowance is deducted as a cost. If rental income is 30,000 PLN and the annual depreciation is 10,000 PLN, tax is calculated on 20,000 PLN, saving you the tax rate applied to 10,000 PLN.

At 2.5% per year, full depreciation is reached after 40 years. Once the accumulated depreciation equals the initial value, no further allowances can be claimed and the book value is zero.

No — one-off (de minimis) depreciation applies to assets worth up to 10,000 PLN or certain KST asset groups. Residential property is excluded from this rule.

No — land is not subject to tax depreciation. When buying a property, you must separate the land value from the building or apartment value; only the latter is depreciated.

Improvements that increase the fixed-asset value by more than 10,000 PLN in a tax year are added to the initial value, raising the depreciation base from which 2.5% is applied each year.

A garage forming part of a residential property is depreciated at 2.5%. A standalone utility garage may qualify for the 4.5% rate — check the KST classification.