The government is proposing a significant reduction in property taxes for allotment garden owners, who have faced unexpectedly high tax bills in recent years. The new proposal, included in the 2026 budget, will assess allotment garden plots at only 40 percent of the value of comparable detached house plots.

Finance spokesperson Benny Engelbrecht (S) stated that allotment gardens have been unfairly taxed the same as year-round residences, despite their limited seasonal use. He emphasized the need for a more reasonable approach to taxation.

The issue arose after changes to property assessment rules in 2021, which led to some allotment gardens being assessed on par with regular homes, resulting in dramatic tax increases. In one instance, members of the Haveforeningen Solpletten in Rudersdal saw their land tax surge from 1,200 kroner to 22,000 kroner over two decades.

Former Minister of Taxation Jeppe Bruus (S) acknowledged the unfairness of the situation, but addressing it required both a technical solution and funding. Engelbrecht said that a solution has now been found, enabling fairer taxation of allotment gardens.

The exact number of affected allotment gardens is unknown. However, Engelbrecht estimates that around 150 properties for allotment garden associations, where owners pay tax, will benefit from the relief. Each of these properties typically contains multiple individual allotment gardens.

Allotment garden owners will begin to see the benefits of the tax relief in the 2025 tax assessment, due to an increase limitation. Engelbrecht assures that future taxation of allotment gardens will be much more reasonable.

The tax relief is projected to cost five million kroner in 2025, increasing to 15 million kroner by 2029. The proposal is a key component of the 2026 budget.