How is the new property tax calculated?

The new German property tax (Grundsteuer) is calculated in three steps: First, the tax office determines the property tax value (Grundsteuerwert) of your property. This is multiplied by the legally defined tax assessment rate (Steuermesszahl) to produce the tax assessment amount (Steuermessbetrag). Finally, the municipality multiplies the assessment amount by its individual tax rate (Hebesatz) — this gives the annual property tax. Depending on the federal state, the method for determining the property tax value differs significantly: some states use the value-based federal model, while others use purely area-based models.

Which calculation model applies in my federal state?

Germany has six different property tax models: The federal model (value-based) applies in 11 states, including Berlin, NRW, Saxony, and Schleswig-Holstein. Bavaria uses a pure area-based model where only the plot and building area count — the property value plays no role. Baden-Württemberg uses the land value model, based solely on the land value per square meter. Hamburg has a residential quality model, Hesse uses an area-factor method, and Lower Saxony has an area-location model. Our calculator automatically detects the correct model based on your federal state.

Where do I find my land value (Bodenrichtwert)?

You can find your land value for free via the BORIS portal (Bodenrichtwertinformationssystem) of your federal state. Simply enter your address or parcel number, and the current land value will be displayed. Alternatively, you can request the land value from the expert committee (Gutachterausschuss) of your municipality. For the property tax calculation, the land value as of January 1, 2022 is typically used, which is stated in the property tax value notice (Grundsteuerwertbescheid) from the tax office.

What is the Hebesatz and how does it affect my property tax?

The Hebesatz (municipal tax rate) is a percentage set individually by each municipality and serves as the final multiplier in the property tax calculation. It varies enormously: from under 200% in small rural communities to over 900% in some major cities. Municipalities were asked to adjust their tax rates during the reform to keep total revenue neutral. In practice, however, many municipalities changed their rates to varying degrees, meaning the individual tax burden for property owners has indeed shifted.

Will my property tax increase or decrease?

This cannot be answered in general terms, as it depends on three factors: the new property tax value of your property, the tax assessment rate, and your municipality’s adjusted tax rate. While the reform was planned to be revenue-neutral — meaning the municipality should collect the same total amount — within each municipality there are winners and losers. Property tax tends to increase for properties in prime locations with high land values, while owners in simpler areas are often relieved. Use our old-vs-new comparison to see your personal change immediately.

Can I object to my property tax assessment?

Yes, you can file an objection (Einspruch) with the responsible tax office within one month of receiving your property tax value notice. Carefully check whether the underlying data is correct: plot area, living area, land value, year of construction, and property type. Common sources of error include incorrect area figures or an overstated land value. The objection does not have a suspensive effect — you must continue paying the property tax in the meantime. However, if the correction is successful, you will receive a refund for any overpaid tax.

Why does Bavaria have its own property tax model?

Bavaria deliberately chose against the federal model because the state considers a purely area-based calculation to be fairer and simpler. In the Bavarian area model, property values and land values play no role — only the square meters of the plot and building count. Bavaria argues that this prevents rising real estate prices from automatically leading to higher property taxes and makes the calculation more transparent and comprehensible for owners. Critics counter that the model ignores value differences between prime and simple locations.

Do tenants have to pay property tax?

In principle, the property owner is the taxpayer — they receive the assessment and must pay the property tax to the municipality. However, the landlord may pass the property tax on to tenants in full as operating costs, provided this is agreed in the rental contract. This is the case in the vast majority of rental agreements. The property tax then appears in the annual operating cost statement. An increase in property tax due to the reform can therefore directly result in higher utility costs for tenants.

What is the difference between property tax A and property tax B?

Property tax A (agricultural) applies to agricultural and forestry businesses and their land. Property tax B (built-up) applies to all developed and developable plots — meaning residential buildings, condominiums, commercial properties, and undeveloped building land. For the vast majority of property owners, property tax B is relevant. The tax rates for A and B are set separately by municipalities and usually differ significantly. Our calculator computes property tax B, as it applies to the majority of all property owners.

When is property tax due and in what installments?

Property tax is due in four installments of one quarter of the annual amount each: on February 15, May 15, August 15, and November 15. Alternatively, owners can apply to the tax office to pay the property tax as a lump sum on July 1 — this application must be submitted by September 30 of the previous year. When ownership changes (e.g., buying a house), the new owner is only liable for property tax from January 1 of the following year. The payment dates apply uniformly throughout Germany.

Check Your Property Tax Assessment: Spot Errors & File an Objection | Property Tax Calculator

Why You Should Check Your Property Tax Assessment

The German property tax reform required the simultaneous reassessment of approximately 36 million properties -- an administrative undertaking of unprecedented scale. Tax offices across the country processed millions of Grundsteuer declarations under significant time pressure, relying heavily on automated systems and the data submitted by property owners themselves. Given this volume, errors are not the exception but a statistically inevitable reality.

Property owners' associations, tax advisors, and consumer protection organizations have consistently reported that a substantial percentage of property tax assessments contain at least one error. Some estimates suggest that up to 30% of all assessments have issues ranging from minor data discrepancies to significant calculation errors that meaningfully affect the tax amount.

Checking your assessment is not about distrusting the tax office -- it is about exercising due diligence with a tax that you will pay every year for the foreseeable future. Even a small error that results in 50 EUR of excess tax per year adds up to 500 EUR over a decade. Larger errors can cost thousands.

Understanding Your Property Tax Notices

The property tax process generates three separate notices, each issued by a different authority. Understanding which notice contains what information is essential for effective review.

The Grundsteuerwertbescheid (Property Tax Value Notice)

Issued by the Finanzamt (tax office), this notice shows the calculated property tax value (Grundsteuerwert) and all the underlying data used in the calculation: plot area, building area, land value, building age, property type, and model-specific factors. This is the most important notice to check because errors in the underlying data propagate through the entire calculation chain.

The Grundsteuermessbescheid (Tax Assessment Amount Notice)

Also issued by the Finanzamt, this notice applies the Steuermesszahl (assessment rate) to the Grundsteuerwert to produce the Steuermessbetrag (assessment amount). The assessment rate is set by law, so errors here are rare but not impossible -- primarily if the wrong property type category was applied, resulting in the wrong assessment rate.

The Grundsteuerbescheid (Property Tax Notice)

Issued by the municipality (Gemeinde), this final notice applies the Hebesatz to the Steuermessbetrag to calculate the actual property tax amount you owe. Since the Hebesatz is a single publicly available number, errors at this stage are uncommon.

To effectively check your property tax, you need to review all three notices, but the vast majority of actionable errors will be found in the first notice, the Grundsteuerwertbescheid.

Common Errors to Watch For

Incorrect Plot Area (Grundstuecksflaeche)

The plot area should match the entry in the land register (Grundbuch). Discrepancies can arise from data transmission errors, confusion between gross and net plot area, or outdated cadastral records. Even small differences matter because the plot area directly multiplies the Bodenrichtwert in the federal model.

Incorrect Living or Usable Area (Wohn- oder Nutzflaeche)

The calculation of living area follows specific rules defined in the Wohnflaechenverordnung. Common errors include counting rooms with low ceiling heights at full value instead of the required partial value, including areas that do not qualify as living area (such as certain basement rooms or unheated attics), and using incorrect measurements. Cross-reference the area figure in your assessment with your building plans or a professional area calculation.

Wrong Bodenrichtwert

The tax office should use the Bodenrichtwert as of January 1, 2022, for the specific zone in which your property is located. Errors can occur if your property was assigned to the wrong zone, if the wrong reference date was used, or if the Bodenrichtwert was transcribed incorrectly.

Incorrect Building Age or Renovation Status

In the federal model, the building's age affects the statutory depreciation (Alterswertminderung), which reduces the building component of the property tax value. An incorrect year of construction can result in too much or too little depreciation. Similarly, if a major renovation (Kernsanierung) after 1995 resets the depreciation clock, this must be correctly recorded.

Wrong Property Type Classification

The property type (Grundstuecksart) affects the assessment rate (Steuermesszahl). Being classified as a two-family house instead of a single-family house, or as a commercial property instead of a mixed-use property, can change the applicable assessment rate and thus the entire tax calculation.

Missing or Incorrect Mietniveaustufe

In the federal model, the Mietniveaustufe (rent level) is a factor that adjusts the statistical rent used in the building value calculation. If the wrong Mietniveaustufe is applied -- for example, because of a data entry error or confusion with a neighboring municipality -- the building value will be incorrectly calculated.

Step-by-Step: How to Check Your Assessment

Start by gathering all three notices (Grundsteuerwertbescheid, Grundsteuermessbescheid, and Grundsteuerbescheid) along with your property documents: land register excerpt, building plans, and the Grundsteuer declaration you submitted.

First, verify the property identification. Check that the Grundbuchblatt (land register folio), Flurstueck (parcel number), and address match your property. Mix-ups between similar parcels or adjacent properties, while rare, do happen.

Second, check each data point in the Grundsteuerwertbescheid against your actual property characteristics. Compare plot area, building area, year of construction, property type, Bodenrichtwert, and any model-specific factors (such as Mietniveaustufe, Wohnlage, or location factors).

Third, replicate the calculation. Use our property tax calculator to input your actual property data and compare the result with the assessed value. If the numbers diverge, you have identified a discrepancy worth investigating.

Fourth, if you find an error, document it clearly. Gather supporting evidence such as measurements, plans, or Bodenrichtwert printouts from the BORIS portal.

How to File an Objection (Einspruch)

An objection must be filed in writing with the tax office that issued the notice. You can send it by mail, fax, or through the ELSTER online tax portal. The objection must be filed within one month of receiving the notice. The date of receipt is typically assumed to be three days after the notice was mailed (as shown by the date on the notice), unless you can prove later delivery.

Your objection should clearly identify the notice you are challenging (by reference number and date), state what you believe is incorrect, explain what the correct data should be, and provide supporting evidence where possible.

You do not need a lawyer or tax advisor to file an objection, though professional assistance can be helpful for complex cases. The objection process is free -- there are no fees for filing an Einspruch.

Important: An objection does not suspend your obligation to pay. You must continue paying the assessed property tax while the objection is being processed. If the objection is successful, the overpaid amount will be refunded or credited against future payments.

What Happens After Filing an Objection

After receiving your objection, the tax office will review the case. The processing time varies but typically takes several weeks to several months, depending on the complexity and the tax office's workload. Given the volume of property tax objections filed since the reform, processing times have been longer than usual in many states.

The tax office may contact you for additional information or documentation. Respond promptly and thoroughly -- delays in your response can extend the processing time significantly.

The tax office will issue an Einspruchsentscheidung (objection decision) that either fully accepts your objection, partially accepts it, or rejects it entirely. If the objection is fully or partially accepted, a corrected notice will be issued. If it is rejected and you disagree with the decision, you can file a lawsuit (Klage) with the Finanzgericht (tax court) within one month.

Be aware of the Verboesserungsverbot prohibition: the tax office cannot increase your assessment as a result of your objection alone. However, if they discover an error in your favor during the review, they may initiate a separate correction procedure. In practice, filing an objection is low-risk -- the worst case is that your assessment stays the same.

Deadlines Summary

The one-month objection deadline is the most critical timeline. Missing it generally means accepting the assessment as final (with limited exceptions for extraordinary circumstances). Mark the deadline in your calendar as soon as you receive a notice.

If you are unable to prepare a detailed objection within the one-month window, you can file a placeholder objection that simply states you are challenging the notice and will provide detailed grounds later. This preserves your right to object while giving you more time to gather evidence and prepare your arguments.

Keep copies of all correspondence and note dates of submission. If you send your objection by mail, use registered mail (Einschreiben) to have proof of the filing date.

Checking your property tax assessment and filing an objection where warranted is not merely a bureaucratic exercise -- it is a fundamental right that can have real financial consequences. Given the scale of the reform and the statistical likelihood of errors, every property owner should take the time to review their notices carefully.