Finances - Many Hessians must pay more property tax
In more than a quarter of the communes in Hesse, the residents must cope with an increased property tax B this year. This is according to the municipal finance analysis of the Taxpayers' Association Hesse. Therefore, 119 of the 421 Hessian cities and municipalities raised this tax, affecting renters and property owners of residential property.
Since the increases, according to the Taxpayers' Association, were often significant, the Hesse-wide average for property tax increased as much as since 2015 - by 34 points to 543 percent. While the communes in the Darmstadt-Darmstadt district and the Odenwald district saw the most significant increases, the increases in the Hersfeld-Rotenburg district and the Wetterau district were significantly lower.
Higher business tax
According to the Taxpayers' Association, the communes also increased business taxes in 2024 twice as often as in the previous year. While the Hessian municipalities had been relatively restrained in the past regarding an additional burden for entrepreneurs, 83 cities and municipalities increased their rates in this year. In the previous year, it had only been 38.
Background, according to the Taxpayers' Association, is the extremely tight financial situation of the municipalities. "We must note that more and more cities and municipalities will not be able to present a balanced budget for 2024," explained Jochen Kilp, chairman of the association. The municipalities are under pressure due to rising wages, a growing number of refugees, an overall higher price level, and higher interest rates.
Less profitable property tax A for agricultural and forested areas was reportedly increased by 79 Hessian municipalities. According to the Taxpayers' Association, it is still unclear how the burden from property tax B will develop in the individual cities and municipalities during the ongoing property tax reform of 2025. In Hesse, there are currently about 6.2 million people living.
- Despite the property tax increases in over a quarter of the communes in Hesse, such as those in the Odenwald District and Darmstadt-Dieburg, the Association of Taxpayers has expressed concerns about the financial situation of municipalities, citing factors like rising wages, refugees, higher prices, and interest rates.
- In response to the tight financial situation, 119 cities and municipalities in Hesse, including those in the Wiesbaden region, increased their property tax B this year, affecting both renters and property owners.
- The Taxpayers' Association of Hesse reported that the average property tax B increased by 34 points to 543 percent since 2015, with the Odenwald District and Darmstadt-Dieburg experiencing the most significant increases.
- Regarding business taxes, the association noted that 83 cities and municipalities in Hesse, including some in Darmstadt-Dieburg, raised their rates in 2024, more than double the number from the previous year, indicating increased financial strain on entrepreneurs in the region.
