Result

Usually, the property tax is paid quarterly, in February, May, August, and November. The annual sum is then paid in four equal installments. The annual calculation has the advantage of giving you a better overview of the payments for each coming year.

How is Property Tax Calculated in Germany?

Following the tax reform, the property or real estate tax is calculated using a simple standardized formula:

Property Value × Tax Assessment Rate × Municipal Multiplier = Annual Property Tax

For normal properties such as housing and even commercial properties the tax assessment rate is 0,31% for 2025 and beyond. For agricultural and forestry land and for vacant land the tax rate is different.

Examples: Berlin Property Tax, Munich Property tax, Hamburg Property Tax

And this is how Thomas calculates it in two steps

What do these Grundsteuer Terms Mean?

Here, it is also important to define the above-mentioned terms:

1. Property Value (Grundsteuerwert): This is a specific value that is calculated by the tax office based on a tax declaration (Grundsteuererklärung) that is submitted by the owner of the property. It takes into consideration various factors like land value (Bodenrichtwert), building size, and rental potential. The tax office notifies you of the value, and you can also request this information from them. Following the 20025 tax reform the aim is to stay closer to a fair value of the property.

2. Tax Assessment Rate (Steuermesszahl): This is a fixed rate which is set by federal law at 0,031 % for all properties other than vacant land (Grundsteur C), or agricultural land, forestry land (Grundsteuer A). Nearly all properties, hence, fall in this category Grundsteuer B. This rate of 0,031 % is since the reform now uniformly applied across the country. A few states make adjustments. For example Hamburg premultiplies the Hebesatz for Grundsteuer B by 70 %. For more information, please visit here. 

3. Municipal Multiplier (Hebesatz): This value is different for every city and municipality and depends on various factors like revenue required by the city, etc.. You can use this table to find the effective multiplier for normal properties for the main cities.  

Property Tax Rates for 2026 for the 20 Largest Cities 

How Much is the Property Tax in Germany?

In the table above you get a quick idea of the effective tax rate. For example, for Berlin the effective property tax rate is about 0,15%, for Munich it is 0,26 % and for Hamburg it is 0,21 %.

Note: the actual rates maybe lower. For Berlin we checked a few assessments and found that the actual rate was closer to 0,08%, almost half the official rate ! This is because the assessed vale is still significantly lower than the market value.

Tip: When interested in buying a property you should ask for the assessed property value.
Tip: If the homeowner does not know the assessed property value, they may know the tax they paid. You can then easily calculate the effective tax rate by dividing the tax by the asking price for the property. 

Passing on Property Tax to Tenants: What Landlords in Germany Need to Know

Important: Landlords who rent out their properties can fully deduct this tax amount as an operating cost (Werbungskosten). They can also pass it on to tenants as utility costs (Nebenkosten). It is one of the operating costs that can be passed on to tenants according to the German Operating Costs Ordinance (BetrKV), provided this has been agreed upon in the tenancy agreement.

Property Tax for Foreigners in Germany

Property owners are required to pay property tax irrespective of their nationality. This calculator does the mathematical work for you without going through the intricacies of German law. 

If you would like any kind of help, more than just the tax, such as mortgages, buying vs renting, loans, and many more, you can reach out to us directly via this page. 

When Does the New German Property Tax Apply?

The new property tax regime is effective from January 2025 onwards. Homeowners should have received the calculated property value early in 2025, and their tax assessment.

The reform of the old property tax was necessary because the old one has been declared unconstitutional. Why? Because it used as its basis outdated unit values so that for example properties in East and West Germany were evaluated differently. The new tax secures the equality of any future evaluation.

What is the Property Tax in Germany in 2026?

If you fill in the 2026 data in the above calculator you can infer the taxes. The tax for 2026 should be quite similar to the tax you pay in 2025.

However, there will be municipalities that raise their tax assessment rate or Hebesatz for Grundsteuer. So quickly check for that by googling this term for your municipality.
Alas there is no website that makes this data easily available across all German municipalities. The Statistical Office latest data are for 2022!.

There also is a chance that the municipality will raise the property value. This depends on the exact method they use for doing property value assessments. The method used differs by city and state.

A total of 11 states follow the federal model, with Saxony and Saarland setting lower tax assessment rates for residential properties. The remaining states have opted for their own models. Bavaria, Hesse, Hamburg and Lower Saxony, for example, use the area model, in which the calculation is based solely on the land or living space and the type of use. Baden-Württemberg will calculate property tax according to the land value model. Here, the land area is multiplied by the standard land value.