- The country updates recommendations for future property tax
In the wake of the property tax reform, the state has updated its recommendations for calculating the tax rates for 61 out of 421 Hessian municipalities. This was necessary for 12 cities and municipalities because they had retroactively changed their current tax rates, as announced by the Upper Finance Authority in Frankfurt. For another 49 municipalities, discrepancies in data related to tax exemptions led to this update.
The tax rate is the factor used to determine how much tax property owners must pay - following the property tax reform, the tax will be recalculated. Property Tax B is being reformed nationwide, with new calculation bases to apply from 2025. The political goal is for a municipality to collect roughly the same amount of property tax with the new law as in 2024. The key lever for this is the tax rate.
With the reform, it is expected that municipalities will adjust their tax rates. However, the state's recommendations are not binding for the municipalities. Only once a municipality has decided on its tax rates for 2025 can it be calculated who will pay what in property tax.
The updates in the property tax reform affect 61 municipalities in Hessen, including 12 cities and municipalities that made retroactive tax rate changes. Despite the state providing recommendations for tax rate calculations, these are not binding for Hessen's municipalities.
