Lower Saxony - Property tax was expensive for many before the reform
Many homeowners and tenants in Lower Saxony will have to pay more money for property tax before the tax reform, according to data from the State Statistics Office. The tax rate, which determines the level of property tax set by cities and municipalities, has reportedly been increasing for years.
The tax rate for property tax B, which applies to private and commercial properties, was 452% on average across the state in 2023. In 2022, it was still 445%. This trend has continued for several years. The average tax rate for agricultural properties also rose, from 396% to 402%.
Property tax is charged to the owner of a property. However, the demands can be passed on to any potential tenants or leaseholders.
Municipalities can increase taxes independently of the reform
From January onwards, a new calculation method will be used. This was necessary because properties were previously assessed based on outdated principles. Overall, the revenue from property tax is not expected to increase due to the reform. However, the amount that individual owners will have to pay can vary from one owner to another.
"Through the new calculation method, there will be property owners who will have to pay more, while others will have to pay a lower property tax than before," stated the Lower Saxony City League and the Association of Towns and Municipalities. Municipalities can also increase the tax for other reasons besides the reform - for example, if they take on additional responsibilities in refugee accommodation, hospital financing, or the operation of kindergartens.
FAQ of the State Tax Office on Property Tax
- Due to the tax reform, some property owners in Hannover, located in Lower Saxony, might see a decrease in their property tax, while others may still have to pay more, given the new calculation method.
- Property owners in Lower Saxony, including those living in cities like Hannover, should be aware that they might need to pay more ground tax after the tax rate for property tax B has been increasing for several years, reaching 452% in 2023.
- Taxes on real estate properties in Lower Saxony, including those found in Hannover, may be subject to increments as municipalities have the autonomy to increase taxes for reasons beyond the tax reform, such as additional responsibilities in refugee accommodation, hospital financing, or kindergarten operation.
