Property tax reform in Hesse: What is now going to be owned!

From January 1, 2025, the property tax reform in Hessen will be effective. This reform affects around 2.7 million properties in the state. The measurement amounts for the property tax have been adjusted, which means that the size and location of land are now evaluated differently.

As early as January 6, 2025, the city of Kassel sends property tax notices. Wiesbaden also plans to send their notices on January 22, 2025, while Offenbach cannot send new notices in January. The shipping is expected to take place here in April 2025. The first property tax payment is due on February 15, 2025, but can be paid afterwards.

Hebesatz adjustments in the municipalities

The municipalities have already set many new rates based on recommendations from the Hessian Ministry of Finance. Frankfurt and Wiesbaden intend to increase their lifting rates, while Kassel remains with an unchanged rate of 490 percentage points, despite a recommendation for reduction to 486.45 percentage points.

The standardization of the lifting rates takes place individually by the municipalities. The aim of the property tax reform is the revenue neutrality for the municipalities. The Hessian Ministry of Finance recommended that the lifting rates in large cities and to reduce in rural communities. A total of 344 municipalities received advice on reducing the lifting rate, while 72 an increase and five are recommended.

In Hesse there are property tax B for property and condominiums as well as property tax A for agricultural and forestry companies. In 2023, 1.36 billion euros flowed from property tax to the Hessian municipalities to finance kindergartens and infrastructure.

A reform was necessary because the 2018 Federal Constitutional Court declared the old calculation to be unconstitutional. Old calculation data came from 1935 for East Germany and 1964 for West Germany, as reported.

The Hessian tax administration has developed the Reform of Lifeguard recommendations for cities and municipalities. These recommendations take into account the volume of tax measurements according to the old and new law at the main assessment time 01.01.2022. Forecasts for the adaptation of the Hebesatz were created with scientifically sound methods and were subject to transparent publication by the Hessian tax administration, as on kündamt.hessen.de