🧾 Property tax (Grundsteuer)

Calculation

According to the Bundesfinanzministerium (FAQ), the new property tax applies from 1 January 2025. Formula in the federal model (NRW, Berlin): property tax value times tax assessment rate times multiplier. The tax assessment rate was lowered from 0.35 percent to about 0.031 percent for residential properties. The declarations related to the circumstances on 1 January 2022; the next general reassessment is planned for 2029 according to the FAQ (federal model only, §§ 221 ff. BewG; Bavaria no regular one). Notification of change: federal model by 31 January of the following year (§ 228 Abs. 2 BewG), Bavaria by 31 March of the following year (Art. 6 Abs. 5, Art. 7 Abs. 2 BayGrStG). The reform is meant to be revenue-neutral; individual burdens shift.

State models

Five states apply their own models: Baden-Württemberg (modified land value model), Bavaria, Hamburg, Hesse, Lower Saxony (area-based models, according to secondary sources). Berlin, Bremen, Saarland, Saxony and from 2027 Thuringia apply the federal model with their own assessment rates according to a secondary source.

States BY / NRW / BE

• Bavaria: area model without a property tax value. Equivalence amounts: area times equivalence figure (€0.04 per m² of land, €0.50 per m² of building area, Art. 3 BayGrStG), times assessment rate 100 percent, residential areas 70 percent (Art. 4), times multiplier. No multiplier C (Art. 5). Multiplier and notice: municipality.
• NRW: federal model, assessment rates unchanged 0.31 per mille (residential) and 0.34 per mille (non-residential). The municipality issues the notice; Grundsteuer C under § 25 Abs. 5 GrStG possible. Since 1 January 2025 differentiated multipliers residential/non-residential (state law of 4 July 2024).
• Berlin: federal model with assessment rate 0.31 per mille (residential) and 0.45 per mille (non-residential and undeveloped), state law of 19 June 2024. The tax office issues the assessment and property tax notice; the multiplier is set by the House of Representatives in the budget act, from 1 January 2025 470 instead of 810 percent. Grundsteuer C is decided by the state.

Due dates

§ 28 GrStG: in quarterly instalments on 15 February, 15 May, 15 August and 15 November. Municipalities can deviate for small amounts (annual amount on 15 August up to €15; two instalments up to €30). On application, payment of the annual amount on 1 July; application by 30 September of the previous year at the latest.

Legal remedy

Berlin: objection (Einspruch) to the tax office within one month of notification (§§ 347, 355 AO); post within Germany: notification on the fourth day after posting (§ 122 Abs. 2 Nr. 1 AO, since 1 January 2025). NRW: objection (Widerspruch) to the municipality, one month (§§ 68 ff., 70 VwGO). Bavaria: objection only optional (Art. 15 Abs. 1 Satz 1 Nr. 1 AGVwGO, municipal charges law), direct lawsuit possible. The 4-day rule of § 122 Abs. 2 Nr. 1 AO applies to municipal notices only via the reference in the KAG. Objections to the property tax value or the tax assessment amount are possible only against the tax office's basic notice, not against the municipality's property tax notice (§ 351 Abs. 2 AO).

Pending proceedings

NRW: the administrative court of Gelsenkirchen (4 December 2025, among others 5 K 2074/25) and of Düsseldorf (10 March 2026, 5 K 7062/25) declared multiplier bylaws with differentiated rates void; appeals before the OVG Münster are open. Bavaria and Berlin: no split of multipliers.