Standard value

Uniform Value - The uniform value was a tax assessment standard for real estate in Germany based on the value ratios of 1964 (West Germany) and was replaced in 2025 by the new property tax value as part of the property tax reform.

What was the unit value and why was it abolished?

The unit value was determined by the relevant tax office as part of an assessment procedure and served as the central basis for calculating property tax. The legal basis was the Valuation Act (BewG). A unit value was determined for each property and each agricultural and forestry business and communicated in the so-called unit value notice. This value formed the basis that was multiplied by the tax assessment amount and the municipal assessment rate to calculate the annual property tax.

The fundamental problem with the unit value lay in its anchoring in the value ratios of 1964. Over the decades, actual real estate values developed at completely different rates. A property in a sought-after downtown location could experience a hundredfold increase in value compared to a property in a structurally weak region, while both were assessed using the same outdated standards. In 2018, the Federal Constitutional Court declared this system unconstitutional, as it violated the principle of equality enshrined in the Basic Law. The legislature was required to create a new regulatory framework.

Since January 1, 2025, the reformed property tax has been in effect throughout Germany. The so-called property tax value, determined using new valuation methods, has replaced the unit value. Bavaria has made use of the state’s discretion clause and introduced a purely area-based model, in which the amount of property tax depends on the area of the land and the building, not on the value of the property.

The Standard Value in Old Notices

Although the standard value has not served as the basis for property tax calculations since 2025, it still occasionally appears in practice. Older property tax notices issued before the transition still list the standard value. The term also regularly appears in purchase agreements or appraisals from earlier years. Anyone purchasing a property who comes across old documents should be aware that the unit value does not provide any indication of the current market value. Unit values were generally far below actual market values-in prosperous locations such as downtown Nuremberg or the greater Erlangen area, they often amounted to only 5-15% of the market value.

Unit Value and Inheritance Tax

In the history of German tax law, the unit value played a role not only in property tax but also in inheritance tax. Until the 1996 inheritance tax reform, real estate was assessed at the unit value in cases of inheritance-which regularly resulted in a significant advantage for real estate assets over other types of assets and was also challenged by the Federal Constitutional Court. This issue has also been resolved today: Inheritance tax is now calculated based on the market value of the property, determined according to the valuation procedures of the current version of the Property Valuation Act (BewG).

Practical Tip for the Nuremberg Region

In the Nuremberg metropolitan region, tax offices have sent out the new property tax assessment notices in recent years. Anyone who owns real estate in Nuremberg, Fürth, Erlangen, or the surrounding counties should carefully review the notice. Especially in Bavaria, with its area-based model, the new property tax amounts can differ significantly from previous ones-both higher and lower. We recommend that our clients review both the property tax assessment notice from the tax office and the property tax assessment notice and property tax notice from the municipality, paying particular attention to the area specifications. In case of discrepancies, an appeal must be filed within one month-the deadline begins upon receipt of the respective notice.

Frequently Asked Questions About the Standard Value

Is the standard value still used for property tax?

No. Since January 1, 2025, property tax throughout Germany has been calculated based on the new property tax value. The standard value is no longer used as the basis for assessment. In Bavaria, property tax is determined using the area-based model, in which only land and building areas are taken into account-the value of the property plays no role. The Bavarian model has the advantage of being easier to calculate and less prone to disputes than the federal model used in other states.

Does the unit value correspond to the market value of my property?

No, not at all. The unit value was based on the value ratios of 1964 and was generally far below the actual market value-in sought-after locations such as Nuremberg’s Old Town or the Erlangen city area, it was many times lower. It was exclusively a tax calculation value with no relation to current market conditions and is not suitable as an indicator of a property’s current market value.

What do I need to keep in mind following the property tax reform?

We recommend carefully reviewing the new notices from the tax office and the municipality. The property tax assessment notice and the property tax assessment notice can each be appealed within one month of delivery. A thorough review is particularly worthwhile for larger properties in the Nuremberg region or for multi-family homes, as area specifications in the notices are occasionally incorrect and can lead to an inflated property tax bill.

The Standard Value in Real Estate Valuation Practice

Although the standard value has had no tax relevance since 2025, real estate professionals still encounter it in old documents-such as loan files, historical appraisals, or inheritance tax notices issued prior to the reform. A common misunderstanding: prospective buyers who purchase a property with old documentation read the unit value and mistakenly assume it reflects the market value at that time. This is incorrect. The unit value was a purely fiscal calculation; even in the 1960s, it was already below the market value. In Nuremberg locations, the unit value of a multi-family home from the 1960s was often only 5 to 10 percent of the actual market value as early as the beginning of the 1990s.

The unit value is therefore completely irrelevant for current real estate valuation. Anyone who needs the current value of a property-for example, for the settlement of an estate, a divorce, or an upcoming sale-should either commission a market value appraisal in accordance with Section 194 of the German Building Code (BauGB) or obtain a well-founded market price estimate based on the current market data from the Appraisal Committee.

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