Overview

• The reform that took effect in January relies on standardized land value indices to calculate taxes based solely on size and location
• Incorrect land-use classifications have produced extreme hikes, such as a retiree’s tax jumping 31-fold for an undevelopable plot and a family’s tax soaring 2,400 percent on a misclassified water-filled gravel pit
• The state’s land tax law has drawn over 1.4 million objections in Baden-Württemberg on constitutional grounds
• The reform introduces Grundsteuer C for undeveloped, buildable land to discourage speculation and spur housing construction
• In Thuringia, the Linke-Fraktion’s draft bill proposes recalibrating assessment rates and empowering municipalities to set differentiated levies from 2026 in response to widespread criticism