Property tax return: What homeowners need to know now

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Property tax return: What homeowners need to know now

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Property tax recalculation due: As of July, millions of homeowners are expected to report data to tax authorities. Evidence.

Berlin. Several home and property owners have received mail from the tax authorities in the past few days: They are required to file a tax return between July 1 and October 31 property tax return to reach.

The background to the recalculation is a ruling by the Federal Constitutional Court: In 2018, it declared the old reckoning system unconstitutional. So the federal and state governments had to reform the system and are now calculating property tax For all 36 million new parts.

Property tax return: why it is absolutely necessary

Using the data from the property tax return, tax offices first calculate the so-called property tax value of the property concerned. In the second step, this value is multiplied by the property tax index at the state level. Now the municipalities raise property taxes at different rates, which is reflected in the so-called tax rate pass. In the third step, the municipalities multiply the value in their assessment rate – and thus determine the final property tax.

It will take some time before all property tax values ​​are recalculated. That’s why with the new tax assessments Can’t be expected before fall 2024. Owners have to pay the new amount first anyway From January 2025.

Until then, tax offices will still use the old standard values ​​for the calculation. They are based on property values ​​going back decades – and have long since ceased to reflect actual price developments. in East Germany Standard values ​​were established only once – namely in 1935. In West Germany The last time this happened was in 1964.

By the way: tenants are also affected by recalculation. Because landlords can pass property tax on to tenants through additional costs.

What information owners need to be prepared

To date, about 20 entries are needed to calculate the property tax. Now it’s all about five numbers:

  1. Land area
  2. land value
  3. Property Type
  4. The age of the building and
  5. The ratio of living space to usable space.

in commercial real estate In the future there will be a maximum of eight numbers instead of more than 30. It should also be easier for agriculture and forestry operations.

How do owners get the data?

There are several ways to get numbers. Realtors put the best real estate registry extract Ready to help you fill it out (or get a new copy of the Land Registry). A letter of information from the tax authorities about the recalculation as well as an appraised value decision, purchase contract or construction documents can also help.

Starting July 1 at the latest, the data should also be available online to everyone via the Boris-D Land Value Information System (Boris-D) map. Federal States Be available. Some countries also provide an online Property Tax Viewer. This is a website with the necessary information. Links to this can be found on the central website of all federal states at

How to file a property tax return

Every property owner must submit a property tax return electronically. For vacant land, for Homes for one or two families In addition to residential units, this can be done easily and free of charge via the website It can also be used by those for whom the tax office writes in the information letter that they must submit the declaration via the free online portal Elster.

This does not apply to owners in Baden-Württemberg, Bavaria, Hamburg, Hesse and Lower Saxony – they must in any case Magpie to use. If the property belongs to a community of heirs or if the owner’s place of residence is abroad, the declaration can also be submitted only via Elster.

It is really difficult for those who absolutely do not want to use a computer: it is only possible in well-founded hardship cases. Data by mail to reach.

Geld-Ratgeber Finanztip recommends registering with Elster as soon as possible, if you don’t already have an account there, so that the portal can be used in a few weeks. Because it always takes a while for the account to be activated.

World Health Organization many many In different federal states, it is better to use a paid business tax program (such as Smartgrundsteuer or Grundsteuer-Digital) – this makes work much easier. Tax advisors can also help with the application. On the other hand, income tax assistance associations are not allowed to process property tax returns.

Where does the tax revenue go?

Income from property tax ends up exclusively in city and municipal coffers. According to the Federal Ministry of Finance, this is currently approximately 15 billion euros per year. Municipalities use this to finance, among other things, schools, day care centers and swimming pools or to build bridges and bike paths.

In general, the property tax returns The reform will not increase – at least that’s what the federal and state governments agreed upon when the new version was drafted.

Property Tax Reform: Who Pays More Next?

Although the total amount of property tax should not increase as a result of the reform, it will be configured differently in the future. Critical for tax burden From 2025 onwards, everyone will be familiar with the neighborhood in which the property or property is located.

If the site has become more attractive since 1964 (West) or 1935 (East), the property tax should also be increased. This applies above all to those cities and municipalities that have experienced a boom since then.

The repair may also increase the cost for future renters Tenant In big cities, attractive: because owners can continue to pass the tax on to operating costs. In turn, the tax burden can decrease in the more structurally weak regions of Germany.

This article was published in cooperation with Money Guide for Consumers is part of the Finanztip Foundation.

Thursday, June 16, 2022, 6:18 pm

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