Have you received a property tax assessment notice from the municipality? Below you’ll find answers to the most important questions about it. If you still have questions, you can find more detailed information under “Further Links.”

 

What is property tax levied on?

The following are subject to property tax:

• agricultural and forestry operations (Property Tax A) and
• Real estate, e.g., single-family homes, condominiums, and commercial properties (Property Tax B).

Property tax is a tax levied on specific properties; that is, property tax must be paid for every agricultural and forestry business and every piece of real estate in Germany. The personal circumstances of the owner are not taken into account when determining the tax base.

 

Who must pay property tax?

The municipality collects property tax from the person or persons to whom the tax office has attributed the property (i.e., the owner). If this attribution is incorrect, please contact the tax office. If the agricultural or forestry operation or the property is owned by multiple individuals, companies, or associations, they are jointly liable for the property tax.

If the ownership changes because the agricultural or forestry operation or the property has been sold, gifted, or bequeathed, the new owner must pay the property tax starting January 1 of the following year. For the year in which ownership changed, the previous owner is still required to pay the property tax. The previous and new owners may agree among themselves that the new owner will assume the costs. The municipality itself may not collect property tax for that calendar year from the new owner but must instead collect it from the previous taxpayers.

If the property is rented out, the property tax can be passed on to the tenant as part of the operating costs.

How much is the property tax?

Property tax is calculated as follows:Property tax assessment base × tax rate = property tax

A detailed description of how the property tax assessment base is calculated can be found under “Property Tax Starting in 2025; Receipt of the Notice Regarding the Property Tax Value or Property Tax Equivalence Amounts and the Property Tax Assessment Base.”

There are at least two assessment rates in every municipality. One assessment rate applies to all agricultural and forestry operations in the municipality (“Property Tax A”). The other assessment rate applies to all properties in the municipality (“Property Tax B”). In addition, the municipality may set further assessment rates for specific categories. The municipality is free to determine the level of the assessment rates. In general, the assessment rate for the current year must be determined by June 30 of that year. You can inquire with your municipality to find out which assessment rate applies there (contact information can be found under “Who is responsible for you?”).

 

To whom do I have to pay the property tax?

You must pay property tax to the municipality where the agricultural or forestry operation or the property is located. You’ll find the bank details on your property tax assessment notice.

Please do not transfer the property tax to the tax office.

When do I have to pay property tax?

Property tax is assessed as an annual amount, with one-quarter of the total due on February 15, May 15, August 15, and November 15. You can apply to the municipality by September 30 of the previous year to have the property tax due in a single annual payment on July 1.

Your property tax notice contains detailed information on when and how much property tax you must pay.

 

How can I appeal the property tax assessment?

Please refer to the section titled “Legal Remedies.”

 

When is property tax waived?

Property tax is waived (in full or in part) only in exceptional cases (e.g., certain parcels of land with minimal infrastructure that are used as sports facilities; property whose preservation is in the public interest due to its significance for art, history, science, or nature conservation, provided that the revenue generally falls below the annual costs). 
In some cases, the municipality may partially waive the property tax (e.g., an extreme increase in the property tax burden for a building that is oversized, not intended for residential use, sparsely furnished, and permanently unused).

You must apply for the waiver with the municipality by March 31 of the following year.

 

When is real property exempt from property tax?

Real estate is exempt from property tax only in exceptional cases. Detailed information can be found at www.grundsteuer.bayern.de. You must apply for the tax exemption at the tax office.

 

What should I do if there have been changes to my property?

Please refer to the section titled “Property Tax; Reporting Changes to Real Estate.”