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Study Finds Wide Swings in Germany’s 2025 Property Tax Across Cities and States

The new analysis attributes the disparities to state model choices and municipal rate decisions.

Overview

  • IW Consult’s ranking for Haus & Grund shows the average annual bill in the 100 largest cities rose by €46 to €545 for a standard single‑family home.
  • Costs range from €258 in Zwickau to €1,377 in Tübingen, with steep increases in Baden‑Württemberg cities such as Mannheim (+€902), Tübingen (+€818) and Stuttgart (+€756).
  • Differences stem from divergent calculation formulas and local multipliers: five states (Baden‑Württemberg, Bavaria, Hamburg, Hesse, Lower Saxony) use their own models, while others apply the federal approach based on imputed rents and land values.
  • Half of the states recorded higher amounts than 2024, with Berlin averaging €850 and Baden‑Württemberg up by €359 to €787, while many eastern cities saw notable decreases.
  • Haus & Grund reports 2.8 million objections and ongoing lawsuits, and the Federal Fiscal Court is due to rule on the federal model on 10 December.