Property tax is mandatory for owners in Germany – at least for almost everyone. Because there are actually places that completely waive this tax, while the trend nationwide is towards increases in the tax.
Do you live in Schleswig-Holstein, Rhineland-Palatinate or Baden-Württemberg or do you own property in these federal states? Then you might not have to pay property tax.
The property tax is considered an important source of income for the municipalities, but according to a study by Ernst
The reform for the new property tax is complex – and this year it will require owners. You have to submit some data to the tax office. You have to be very precise and observe special deadlines. In our large guide you will find all the information you need to know in a compact form.
The study lists 16 municipalities whose assessment rates for property tax B are 0. Since the new real estate tax is also calculated according to the formula “value of real estate x tax index x assessment rate”, no real estate tax has to be paid in these areas:
Baden-Württemberg:
Rhineland-Palatinate:
Schleswig-Holstein:
But the waiver of property tax is the big exception. Prices are currently rising in many places and property tax is showing similar tendencies. According to the findings of the study, about every twelfth municipality nationwide increased the property tax last year.
A total of 891 German cities and municipalities have increased the property tax, while only 75 municipalities have reduced the property tax rate. In the previous year, the property tax rate was increased in 1,070 cities and municipalities and reduced in only 88 municipalities.
The most property tax is due in North Rhine-Westphalia with an average of 216 euros, the cheapest is in Brandenburg with 110 euros. The national average was 175 euros in property tax last year – three euros more than in 2020.
Up to and including 2024, the property tax will still be calculated according to the current method. The newly determined amounts will only apply from 2025. This should not result in a serious additional burden for the citizens.
