Land values rise nearly 20% in Tartu and more than 50% nearby

Land values in Tartu have risen nearly 20% since 2022, while increases in nearby municipalities have exceeded 50%, ERR reports. Preliminary estimates put land-tax increases in the region at up to 50%.

In Tartu municipality, properties in Raadi valued at about €15,000 four years ago are now worth nearly €150,000. Mayor Jarno Laur said the municipality could see land taxes rise by up to 30%. He said the municipality may increase the tax exemption for land under homes to limit extra costs for homeowners.

Land values in Kambja municipality have risen by nearly 50%, but the mayor expects a more modest tax increase. Kajar Lember said annual increases for residents would not exceed 20%. In the small borough of Ülenurme, a property that would otherwise face an annual tax of about €85 next year will owe nothing because the municipality applies a €100 exemption for land under a home.

Some landowners are already paying substantially more. Kaire Avi-Kinnunen, who lives in Tammelinn, a district of Tartu, pays no tax on the land under her home. But the tax on her nearly 1,700-square-metre plot on the edge of the city has risen from €421 last year to €631 this year.

Tartu’s budget strategy projects a 50% land-tax increase next year, with further increases to follow. The city expects land-tax revenue to grow from €5 million this year to €13 million by 2030. Deputy Mayor Martin Bek said the city would review its calculations next year, adding that the possible increase in Tartu could range from 10% to 100% and that future adjustments remain undecided.