- Taxpayers' Association: Property tax will rise in many places by 2024
Property owners in Lower Saxony will likely pay more property tax this year, according to calculations by the German Taxpayers' Association. More than 200 of the approximately 940 municipalities in the federal state have increased the property tax B rate this year, as announced by the association in Hanover. The increases were, on average, higher than in previous years.
The rate for property tax B applies to both private and commercial properties. With this rate, cities and municipalities set the level of property tax. According to the State Office for Statistics, this rate has been increasing for years. The Taxpayers' Association cites the strained financial situation of cities and municipalities in Lower Saxony as the main reason for the increase.
New Calculation from 2025
The association suspects that many municipalities are increasing property tax this year to ensure revenue neutrality in the following year. Starting in January, a new method will be used for calculation. This was necessary because properties had been valued based on outdated data for decades. In total, the reform is not intended to increase property tax revenue. However, the amount that will be due in the future may vary from owner to owner.
Property tax is billed to the owners of a property. The claims can be passed on to tenants or lessees. For municipalities, property tax is one of the most important sources of income.
The German Taxpayers' Association, which includes the Association of Taxpayers, attributes the property tax increments in Lower Saxony to the financial struggles of cities and municipalities. Following the reform in 2025, many municipalities may have increased property tax this year to maintain revenue neutrality in the future.
