Germany's Grundsteuer (property tax) was fundamentally reformed in 2022. Our property tax calculator computes the assessed value, tax base, and annual tax under the federal Bundesmodell — instantly and free.
What Is the Grundsteuer?
The Grundsteuer is an annual tax levied on land and buildings in Germany. It is collected by municipalities and is one of their most important revenue sources. Property owners pay it directly; tenants often bear it indirectly through operating cost statements (Betriebskosten).
From 2025 onwards the new property tax law applies across Germany. The reform was necessary after the Federal Constitutional Court ruled in 2018 that the old standard values (Einheitswerte) — some dating back to the 1960s — were unconstitutional.
The Bundesmodell: How Is Grundsteuer Calculated?
Under the federal Bundesmodell the calculation involves three steps:
- Determine the Grundsteuerwert (assessed value)
- Calculate the Grundsteuermessbetrag (tax base: assessed value × tax rate)
- Apply the municipality's Hebesatz (multiplier) to arrive at the final tax
Step 1: Grundsteuerwert (Assessed Value)
The assessed value combines:
- Land value = Plot area × standard land value (Bodenrichtwert)
- Building value = Simplified from standard construction costs and living area
The Bodenrichtwert is the average land value per square metre for a given location, published by local property valuation committees. You can find it via the BORIS online portal or your local land registry.
Step 2: Grundsteuermessbetrag (Tax Base)
A statutory tax rate (Steuermesszahl) is applied to the assessed value:
- Residential properties: 0.31 ‰ (0.00031)
- Non-residential properties: 0.34 ‰
Formula: Grundsteuermessbetrag = Grundsteuerwert × 0.00031
Step 3: Annual Grundsteuer
The municipality multiplies the tax base by its Hebesatz (multiplier). This varies widely — the German national average is around 350 %.
Formula: Grundsteuer = Grundsteuermessbetrag × Hebesatz ÷ 100
Worked Example: Detached House in Berlin
A typical detached house in Berlin with a 500 m² plot (Bodenrichtwert €300/m²) and 120 m² living area:
| Item | Calculation | Result |
|---|---|---|
| Land value | 500 m² × €300/m² | €150,000 |
| Building value (simplified) | 120 m² × €1,600 × 0.75 | €144,000 |
| Assessed value | €150,000 + €144,000 | €294,000 |
| Tax base | €294,000 × 0.00031 | €91.14 |
| Annual tax (350 % multiplier) | €91.14 × 3.50 | approx. €319/year |
Use our free German property tax calculator to compute your individual Grundsteuer.
States Using Their Own Models
Five German states exercised the "opening clause" and introduced their own property tax models instead of the Bundesmodell:
- Bavaria — Bayern-Modell (pure area model, no value component)
- Baden-Württemberg — BW land value model (land value only, no building value)
- Hamburg — Hamburg residential location model
- Hesse — Hessian area-factor model
- Lower Saxony — Lower Saxon area-location model
These states use different formulas and tax rates. Our calculator shows an approximation based on the Bundesmodell for these states.
Bodenrichtwert: The Key Driver
The standard land value is the most important factor in the Grundsteuer calculation, especially in urban areas. In sought-after city centres it can be far higher than in suburban or rural locations.
Where to find your Bodenrichtwert:
- The BORIS portal of your federal state (free)
- The local Gutachterausschuss (property valuation committee)
- Your property tax assessment notice from the Finanzamt
Grundsteuer and Rental Properties
Landlords may pass on the Grundsteuer to tenants as operating costs (§ 2 No. 1 BetrKV). If the lease agreement includes an operating cost clause, a rising Grundsteuer can be charged on. Across Germany the Grundsteuer typically adds around €0.17–0.35/m² per month to operating costs.
Practical Tips
- Check your assessment: Compare the notice against your property tax return — errors in plot area or Bodenrichtwert are common.
- File an objection: If you dispute the assessed value, you can file a formal objection (Einspruch) with the Finanzamt within the deadline.
- Watch the Hebesatz: Municipalities can raise their multiplier at any time. A higher Hebesatz increases your annual tax even if the Messbetrag stays the same.
Related Calculators
When buying property in Germany, several other taxes and costs apply:
- Real Estate Transfer Tax Calculator — one-time tax on purchase (3.5–6.5 %)
- Rental Yield Calculator — is your property worth it as an investment?
- Mortgage Calculator — monthly payment and remaining debt