The application of the property tax on individuals’ homes based on market value, initially scheduled for 2026, has been postponed to 2027. Instead, for the 2026 fiscal year, the Ministry of Finance will introduce a transitional mechanism that will adjust taxation closer to market levels, without yet resorting to individual evaluations.
At the same time, substantial increases in local property taxes are being discussed at the political level, currently publicly estimated in the range of 60–70%. Consequently, even if the “market value” reform is delayed, the tax burden on homeowners is expected to rise.

Context and timeline

Taxation of properties at market value is already provided in the current legislation (through the reform introduced by GEO 16/2022 and subsequently adjusted). However, the implementation calendar has been postponed several times: initially set for 2025, then for 2026, and now rescheduled for 2027, the stated reason being the need to finalize IT systems and evaluation mechanisms. For 2026, a transitional scheme is planned.
As regards legal entities, where taxation is based on values established by evaluation reports, no fundamental methodological changes are anticipated at this time.

Why will payments increase even without market value evaluations?

The announced transitional mechanism aims to get closer to market reality by adjusting the taxable values in the Fiscal Code or by using updated parameters (zones, rank of locality, materials), which will translate into rates applied to a higher base. Currently, for residential buildings owned by individuals, the tax is determined by applying a rate between 0.08% and 0.2% to the taxable value of the property, the specific level being set by the local council and usually close to the minimum threshold. In 2026, authorities may intervene on one or both components – the calculation base and/or the applicable rate.

Possible transitional mechanism for 2026

Although the rules have not yet been formalized, the outline of the future mechanism is already visible: taxable values would be uniformly updated at the level of each administrative-territorial unit, local councils will retain the role of setting the rate within the interval provided by law, with possible increases where the minimum is currently applied, while individual evaluations for individuals will be postponed until 2027, once the IT infrastructure and necessary methodologies are completed.

Impact for homeowners – what to anticipate?

The main implications of the new rules can be summarized as follows: the annual housing tax will increase, as a result of raising the taxable base and/or the local rate, the specific level depending both on local council decisions and on transitional parameters set centrally; the impact will differ from one locality to another, as the autonomy of local authorities in setting the rate will cause areas that have long maintained the minimum levels to see more visible jumps. Regarding companies, no methodological changes are announced, so compliance with the discipline of periodic evaluations and the correct classification of buildings as residential, non-residential, or mixed remains essential.

It should be noted that the public estimate of 60–70% indicates the possible scale of adjustments, not an automatic percentage applicable to all. Final confirmation depends on the normative acts that will regulate the transitional regime and on the decisions of local authorities.

Recommendations

Practical recommendations include: conducting an impact analysis on the portfolio, through simulations for each type of property (primary home, secondary home, rented) in various scenarios of base and rate increases; monitoring at the local level the draft decisions regarding the rates for 2026; ensuring procedural compliance by verifying correct classifications (residential/non-residential), surfaces, and other declarative data impacting the calculation base; as well as cash-flow planning, by budgeting updated taxes, taking into account payment deadlines and possible local discounts.

The postponement of the “market value” reform does not remove the tax pressure on homeowners in 2026. On the contrary, through a transitional regime that adjusts taxable values and through possible local decisions to raise rates, the burden may increase significantly, in line with current public estimates. Early preparation, through simulations, checks, and monitoring, becomes essential to avoid surprises at the beginning of next year.