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Germany's Municipal Tax Revenues Barely Grow as Property Tax Hikes Spread

A watchdog analysis finds many Lower Saxony councils setting 2025 rates above the promised revenue‑neutral level.

Overview

  • Official 2024 data show Gewerbesteuer receipts rose just 0.2% to about €75.3 billion, with combined property and business taxes up 0.8% to €91.4 billion.
  • Regional results diverged sharply, with declines in Sachsen‑Anhalt and Hamburg and notable gains in Bremen, Mecklenburg‑Vorpommern and Rheinland‑Pfalz.
  • Property tax B revenues climbed to €15.6 billion in 2024, and in Lower Saxony they reached roughly €1.6 billion as the average multiplier rose from 452% to 475%.
  • A new review by taxpayer and housing groups reports roughly one in three Lower Saxony municipalities set 2025 multipliers above revenue‑neutral levels, which would raise bills for owners and renters.
  • Municipal associations defend increases as necessary to cover strained budgets after a record €24.8 billion deficit in 2024, with county leaders warning of a possible shortfall near €35 billion in 2025.