Property owners in our country are required to pay property tax at certain times of the year. The law specifies who is obliged to pay property tax, and it also identifies those who are exempt. In this article we examine who does not pay property tax.
Property tax is an annual tax levied on real estate.
Just as there are people required to pay property tax, there are also those who are exempt. These exemptions are explained in the Property Tax Law. Exemption rules are based on properties up to 200 square meters of gross area. In jointly owned residences, the exemption is not determined by each owner’s share but by whether the entire gross area of the residence exceeds 200 square meters.
The people who are exempt from paying property tax can be listed as follows:
Persons who own a single residence with a gross area of up to 200 square meters:
- Housewives and unemployed individuals with no other income are not required to pay property tax.
- Pensioners whose only income is the pension received from the Social Security Institution (SSK, Bağ-Kur, and Pension Fund) — and their widows and orphans — are not required to pay property tax.
- People with disabilities are exempt from paying property tax.
- Veterans are exempt from paying property tax.
- Widows and orphans of martyrs are exempt from paying property tax.
Homeowners who wish to benefit from exemptions or reductions must apply to their municipality with a written request. Those who do not submit an application or who do not meet the specified exemption requirements cannot benefit from property tax exemptions or reductions. Therefore, homeowners should apply to their municipality without delay to regularize their status.
Paying Property Tax
In addition to who pays property tax, it is important to know where and how to pay it. Property tax payments are made to the account of the municipal authority where the property is located. Payments can be made in person or online. In municipalities that accept online payments, tax can be paid by credit card through the municipality’s website. Additionally, payments can be made via PTT or by bank transfer through online banking systems.
Consequences of Not Paying Property Tax
If property tax is not paid, a late payment penalty is applied. Unpaid property taxes accrue a late fee of 1.4% for each month of delay. The tax must be paid together with the accumulated late fee.
Property Tax Rates
Property tax rates are set by the state. For residences the rate is set at 0.1% (one per thousand), while for other types of real estate it is 0.2% (two per thousand). Rates also vary depending on the size and classification of cities. In large cities and certain designated areas, rates are applied with a 100% increase. That means in major cities the rates are 0.2% for residences and 0.4% for workplaces and other types of real estate.
In addition, properties subject to restrictions on disposal are taxed at a different rate. For these restricted properties the property tax rate is applied at one-tenth of the normal rate.
Refunds for Overpaid Taxes
People who are exempt from property tax may be entitled to refunds for taxes they paid previously. Those who meet exemption conditions can apply to have previously paid property tax refunded.
In such cases, citizens should go to their registered municipality and submit a written application to request a refund for past property tax payments.
Applying for Property Tax Reductions
Property owners who wish to benefit from a property tax reduction must apply to the relevant municipal office. Each municipality has its own form. Along with the form, the following documents must typically be submitted to the relevant office:
- A form proving that a person with no income owns a single residence.
- A sworn statement for persons with no income declaring ownership of a single residence.
- A form for pensioners, widows, and orphans who own a single residence and hold usufruct rights.
- A reduced tax form for persons with disabilities who own a single residence.
- The applicant’s medical board report, if applicable.
- A form for widows and orphans of martyrs and for veterans who own a single residence and hold usufruct rights.