Germany's 2025 Property Tax Reform Prompts Changes for Homeowners

New tax rates and payment adjustments are set to take effect nationwide, with specific guidance issued for cities like Hamburg, Essen, and Herne.

The nationwide property tax reform in Germany will take effect on January 1, 2025, introducing updated calculations for property taxes.
Hamburg has advised over 400,000 property owners not to pay their property tax by the usual February 15 deadline, as new rates will not be finalized until late March.
Hamburg's first payment deadline for the updated property tax has been moved to April 30, 2025, with homeowners instructed to cancel standing orders and switch to SEPA mandates to avoid overpayments.
In Essen, the city council has approved its budget for 2025, including new property tax rates that will apply to local property owners starting next year.
In Herne, many single-family and two-family homeowners are expected to see significant increases in their property tax bills due to the reform.