Real Estate

These are the federal states with the highest property tax

Property tax_Brandenburg
Property tax has also risen in Brandenburg, but it is significantly lower than in the neighboring Mecklenburg-Western Pomerania.Pixabay

Anyone who owns a property in Germany pays property tax. Landlords pass the levy on to tenants via the ancillary costs. The amount of the fee is always a cause for amazement or a dispute. Because how high the property tax is can vary within neighborhoods or even on the same street. However, the municipalities usually agree on one thing: more than half of them have increased property tax nationwide in recent years.

This emerges from an analysis by EY on the development of real municipal taxes. According to this, around 58 percent of the municipalities increased the property tax assessment rate between 2013 and 2018. It now averages 378 points. Five years ago it was 351 points. The result: “Since 2013, the municipalities’ income from property tax has risen by 15 percent to 14.2 billion euros most recently,” reported EY.

Calculating property tax is complicated. This is based on three factors: standard value, property tax index and the assessment rate. A distinction is made between rate A for farms and forestry businesses and rate B for most other properties. These statistics refer to the assessment rate B.

The assessment rate for property tax is highest in these federal states:

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