Overview

• The 2025 property tax reform in Germany has led to significant public pushback, with thousands of objections filed against tax assessments in various regions, including 26,700 in Mittelsachsen alone.
• The reform was mandated after the Federal Constitutional Court declared the previous system unconstitutional in 2018 due to outdated valuation methods dating back decades.
• Errors in property tax calculations, often due to incorrect data inputs like misclassifying spaces, have caused financial discrepancies for property owners, prompting calls for corrections even after deadlines have passed.
• Some regional governments, such as in Lower Saxony, have announced measures to retroactively address calculation mistakes and evaluate the impact of the reform earlier than initially planned.
• Local governments, including Potsdam, have delayed issuing new tax bills to finalize updated rates, while some municipalities report mixed outcomes with both increased and decreased tax burdens for property owners.