Heavy modification of Hesse's land tax: a significant financial strain for its citizens
In Hesse, the property tax rates remain relatively high, with an average of around 6.00%, placing it among the higher rates in Germany by state comparison [5]. This high tax burden is due to local government funding needs and regional tax policies aimed at financing infrastructure and public services.
Jochen Kilp, board member of AT Hesse, has expressed concerns about the tax reform, stating that it often comes with significant additional burdens for taxpayers [1]. He suggests that municipalities should not shift the burden to citizens by increasing taxes one-sidedly [2].
The effects of these high property tax rates can be felt most acutely by tenants, as higher taxes often translate into increased rental costs. Landlords commonly pass some or all of the property tax expenses on to tenants through rent adjustments or operating costs, contributing to overall increases in the cost of living and housing affordability pressure in Hesse [2][5].
As for further tax increases in Hesse, there is no explicit information from current 2025 sources indicating planned hikes. However, given that inflation has stabilized around 2.0% in mid-2025 and the political changes following the early federal election in February 2025, local tax policies could evolve depending on government priorities [3][4].
Citizens who wish to stay informed about news from the city and district of Offenbach can subscribe to a free newsletter. The newsletter subscription does not involve spam, and the confirmation email can be found in the inbox or spam folder [6].
For those interested in understanding how tax rates in their region have developed, information can be found on the Hesse Tax Office's website [7]. Some cities and municipalities, such as Löhneberg, Lindenfels, and Königstein, have particularly massive increases in tax rates, with Heusenstamm boasting the highest tax rate of 1,327 percent [8].
On the other hand, nine municipalities have set their tax rates below the state's recommendation, with Bad Homburg reducing its tax rate by 122 points below the recommendation [9]. The Hesse Tax Office has made the results of its survey and additional background information on the real estate tax reform available on its website [10].
The federal government and states have not kept their promises to municipalities regarding the tax reform, according to AT Hesse [11]. This has led some municipalities to justify their deviation from the state's recommendations due to financial constraints [12]. Rüsselsheim and Neuberg have also decided on a noticeable relief in tax rates [13].
In urban areas, high tax rates lead to a strong increase in financial burden, particularly where basic tax assessments have decreased due to revaluation [14]. As the tax reform in Hesse is far from complete, with many municipalities yet to finalize their budgets for 2025, there is potential for further tax rate increases [15].
In conclusion, Hesse's property tax rates remain high, affecting tenants and rental costs. While there is no specific public information suggesting further imminent tax increases in Hesse in 2025, ongoing economic and political developments could influence future tax policy. The Hesse Tax Office's website serves as a valuable resource for information about the real estate tax reform in Hesse, and citizens can stay informed about local news through the free newsletter subscription.
What could the potential impact of future political changes be on business, finance, and general news in Hesse, considering the unfulfilled tax reform promises by the federal government and states?
With the upcoming budget finalizations for 2025 and expected economic developments, will tenants continue to bear the brunt of the high property tax rates in Hesse, or will there be relief as suggested by some municipalities such as Rüsselsheim and Neuberg?
