In this work there are overviewed possibilities to increase municipality budget income using tax on real estate, because this tax is more neutral against common economical situation and its objects are localized, relatively stable and known, which makes this tax administration easier. Using effective tax system basic principles, there is evaluated necessity to make changes in every element in real estate tax. As the result increased number of real estate tax objects are offered, laying over with tax living houses and it’s subsidiary buildings. There is also created offer for optimal tax rate for existing and new objects.