Calculate German Grundsteuer using the new reform model: Grundsteuerwert x Steuermesszahl x Hebesatz.
Note: The new Grundsteuer reform took effect on 1 January 2025. Property values have been reassessed using the Bundesmodell or state-specific models. Your actual Grundsteuerwert can be found on your Grundsteuerwertbescheid from the Finanzamt.
What changed with the Grundsteuer reform in 2025?
The Grundsteuer reform replaced the outdated property valuations (some dating back to 1935/1964) with new Grundsteuerwerte based on current property data. The federal model (Bundesmodell) considers location, property type, building age, and land value. Several states use their own models. Municipal Hebesatze were adjusted to achieve revenue neutrality.
What is the Steuermesszahl?
The Steuermesszahl is a legally defined factor applied to the Grundsteuerwert to calculate the Steuermessbetrag. Under the federal model, residential properties use 0.31 per mille and non-residential properties use 0.34 per mille. Some states have different rates.
When is Grundsteuer paid?
Grundsteuer is typically paid quarterly on February 15, May 15, August 15, and November 15. Alternatively, property owners can apply to pay the full annual amount on July 1 (Jahreszahler). Landlords can pass the Grundsteuer on to tenants through Betriebskosten.
Disclaimer: These calculations are estimates based on 2025 German tax rules and should not be considered professional tax advice. Consult a Steuerberater for your specific situation.
How the reformed Grundsteuer works from 2025 and what property owners pay
What is Grundsteuer?
Grundsteuer is an annual tax on property ownership paid to your local municipality. It applies to all land and buildings in Germany. The amount depends on the property value, type, and the local Hebesatz (multiplier). For a typical apartment in a mid-sized city, expect to pay €300 to €800 per year. For a house, €500 to €1,500 per year.
How was the Grundsteuer reformed?
The Bundesverfassungsgericht ruled the old system unconstitutional because values had not been updated since 1964 (West) or 1935 (East). The new system from 2025 uses updated property values. Most states follow the Bundesmodell based on land value, building type, and living space. Some states (Bavaria, Hamburg, Hessen) use their own simplified models.
How is Grundsteuer calculated?
Under the Bundesmodell: Grundsteuerwert (assessed value) × Steuermesszahl (tax rate number, 0.031% for residential) × Hebesatz (municipal multiplier). A property with a Grundsteuerwert of €250,000: €250,000 × 0.031% = €77.50 × Hebesatz of 500% = €387.50 per year. The Hebesatz varies hugely — from 260% in rural areas to 900% in some cities.
Can Grundsteuer be passed on to tenants?
Yes, landlords can include Grundsteuer in the Nebenkosten (service charges) passed on to tenants through the Betriebskostenabrechnung. This is standard practice and allowed under the Betriebskostenverordnung. The tenant pays their proportional share based on apartment size. Even when passed through, it remains a deductible expense for the landlord.
What is the difference between Grundsteuer A and B?
Grundsteuer A applies to agricultural and forestry land (land- und forstwirtschaftliches Vermögen). Grundsteuer B applies to all other property (residential, commercial, industrial). Most property owners pay Grundsteuer B. There is also a new Grundsteuer C that allows municipalities to charge higher rates on undeveloped but buildable land to encourage development.
When and how do you pay Grundsteuer?
Grundsteuer is typically paid quarterly: 15 February, 15 May, 15 August, and 15 November. You can also apply to pay the full amount once on 1 July. The municipality sends you a Grundsteuerbescheid (assessment notice) showing the annual amount. Payment is usually by direct debit (Lastschrift) or bank transfer. Late payments incur Säumniszuschläge (penalty charges).
Bundesfinanzministerium-Aligned: Based on 2025 Bundesfinanzministerium rates and thresholds. For personal advice, speak to a qualified Steuerberater (tax adviser).
Disclaimer: This calculator provides estimates based on current German tax rates and thresholds for the 2025 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified tax adviser before making financial decisions. Read our terms