Since 1 January 2025, property tax (Grundsteuer) has been recalculated throughout Germany. For many owners in Düsseldorf and North Rhine-Westphalia (NRW), this means a changed assessment notice, new values and, on occasion, some uncertainty. We have more than 60 years of experience with property in the region and are familiar with the questions that are on owners' minds right now. This guide explains, calmly and clearly, how the new property tax works, who pays it, which assessment notices you can expect and what you should bear in mind when it comes to deadlines.
What is property tax and why was it reformed?
Property tax (Grundsteuer) is one of the oldest taxes of all and one of the most important sources of revenue for towns and municipalities. What is taxed is the real property itself, that is, your plot of land together with any buildings. Unlike the one-off land transfer tax (Grunderwerbsteuer) payable on purchase, property tax falls due every year for as long as you own the property.
The reform was not an end in itself politically. In 2018 the Federal Constitutional Court (Bundesverfassungsgericht) declared the old method of calculation unconstitutional because it was based on assessed standard values (Einheitswerte) that were decades old, some dating back to the 1960s. As a result, comparable properties were treated unequally. The legislature was required to put property tax on a new footing, and the new law has applied since 1 January 2025.
For you as an owner this means above all that the amount of your property tax may have changed compared with previous years, either upwards or downwards. This is intended, because the reform redistributes the burden and once again takes its bearings from current values.
How property tax has been calculated since 2025
The new property tax follows a clear three-stage formula:
Property tax value × tax base figure × municipal multiplier = property tax
- Property tax value (Grundsteuerwert): On the basis of your property tax return, the tax office (Finanzamt) determines the value of the property. Among other factors, the federal model takes into account the standard land value (Bodenrichtwert), the plot area, the type of building, the year of construction and a notional rent.
- Tax base figure (Steuermesszahl): A very small factor laid down by law. It was reduced significantly under the reform, to around 0.31 per mille for most residential properties. From this the so-called base assessment amount (Steuermessbetrag) is derived.
- Municipal multiplier (Hebesatz): This is set by your town or municipality at its own discretion. Only this municipal multiplier determines how much you ultimately pay.
It is important to know that North Rhine-Westphalia (NRW) has applied the so-called federal model since 1 January 2025. This means that the valuation is carried out according to the uniform federal rules; there is no separate NRW valuation model as in Bavaria or Baden-Württemberg. The municipalities in NRW may, however, set different multipliers for residential and non-residential properties, which is known as multiplier splitting (Hebesatzsplitting).
Property tax A, B and C: the three categories
The Property Tax Act (Grundsteuergesetz) distinguishes three categories, and your municipality may set a separate multiplier for each:
- Property tax A (Grundsteuer A) applies to agricultural and forestry operations.
- Property tax B (Grundsteuer B) is the category relevant to most owners. It applies to all other developed and undeveloped land, that is, to your home, your owner-occupied flat or your commercial property.
- Property tax C (Grundsteuer C) was newly introduced with the reform. It allows municipalities to tax building-ready but undeveloped plots at a higher rate, in order to mobilise building land and counter speculation. Whether a town makes use of this is for it to decide by by-law (Satzung).
So if you own a typical home or a flat, property tax B is the one that applies to you.
Who pays property tax and how is it passed on to tenants?
The taxpayer is always the owner of the property, as a rule the person registered in the land register (Grundbuch). The municipality addresses its assessment notice exclusively to you as the owner.
If you let your property, however, you are permitted to pass the property tax on to your tenants. The Operating Costs Ordinance (Betriebskostenverordnung) expressly names property tax as an apportionable ongoing public charge (§ 2 No. 1 BetrKV). This is conditional on the apportionment of operating costs having been validly agreed in the tenancy agreement (§ 556 BGB, German Civil Code). You then pass the property tax on proportionately through the annual operating costs statement.
For owner-occupiers the position is simply this: property tax is an ongoing cost item that you bear yourself. Anyone weighing up whether holding on to a property is still worthwhile in the long run should keep this annual burden in mind.
Which assessment notices arrive and which deadlines apply?
Under the new system you receive not one but up to three notices, which build on one another:
- Property tax value notice (Grundsteuerwertbescheid) from the tax office: this determines the value of your property.
- Property tax base assessment notice (Grundsteuermessbescheid) from the tax office: this states the base assessment amount, that is, the property tax value multiplied by the tax base figure. This notice is then binding on your municipality.
- Property tax notice (Grundsteuerbescheid) from your town or municipality: only here is the multiplier applied and the specific amount payable set.
Against the two notices from the tax office you may lodge an objection within one month of notification (§ 355 AO, German Fiscal Code). This deadline is decisive, because anyone who allows the value or base assessment notice to become final can hardly challenge the underlying values later, when the municipal notice arrives. You should therefore check your notices promptly and carefully, for example the area, year of construction and type of building.
Property tax itself is, under § 28 of the Property Tax Act (Grundsteuergesetz), usually due in four instalments: on 15 February, 15 May, 15 August and 15 November respectively. On request, an annual payment is also possible. For tax matters relating to your notice that are complex, it is worth consulting your tax adviser, who can assess your personal situation in detail.
What the reform means for owners in Düsseldorf and NRW
The aim of the reform was to be largely revenue-neutral. The municipality's total revenue was to change as little as possible as a result of the recalculation, while the burden was to be distributed more fairly. In practice this means that, from 2025, some owners pay more and others less than before, depending on location, use and the multiplier set by the relevant municipality.
The decisive lever here lies in the hands of your town. You can find the current multiplier for property tax B in Düsseldorf in the multiplier by-law (Hebesatzsatzung) of the state capital that is in force at any given time. As municipalities can adjust their rates each year, it is worth checking your municipality's current by-law.
And the legal position? In December 2025 the Federal Fiscal Court (Bundesfinanzhof) confirmed the federal model in several proceedings, including from NRW, as being constitutional in principle. A final decision by the Federal Constitutional Court (Bundesverfassungsgericht) is still pending, but until then the position is: property tax must be paid, and objections in principle have no suspensive effect.
In the end, property tax is an ongoing cost factor that belongs in any honest reflection about a property, whether you are holding it, passing it on as an inheritance or selling it. If you are thinking in any case about what your property is worth today, perhaps because your circumstances have changed, we are glad to look at it with you without obligation. With more than 60 years on the Düsseldorf market and a network of more than 20,000 contacts grown over the decades, we will assess your property realistically, entirely without any pressure to sell.
