Property Tax Assessment Notice

The property tax assessment notice is the official notice issued by the municipality that sets and demands the annual property tax owed by the property owner. It includes the assessed value, the municipal tax rate, and the resulting annual amount, which is typically due in quarterly installments. Since the 2025 property tax reform, the notice has been based on newly determined property tax values (formerly: unit values).

Structure and Content of the Property Tax Notice

The notice consists of several elements: the property tax value (determined by the tax office), the tax base (property tax value × tax rate), and the annual property tax amount (tax base × municipal assessment rate). In Bavaria, the Bavarian area model has been in effect since 2025, which is based on land and building areas-regardless of location or market value. The notice also lists the four due dates (February 15, May 15, August 15, November 15).

Property Tax Reform 2025 - What Property Owners Need to Know

As a result of the property tax reform, all municipalities in Germany have sent out new property tax notices based on the new assessment as of January 1, 2025. In Bavaria, the area-based model is applied: The calculation is based on land area × equivalence factor and living area × equivalence factor, multiplied by the municipal assessment rate. Unlike the federal model, Bavaria does not take location or land value into account. Property owners should check whether the notice matches the property tax assessment notice from the tax office.

Objections and Appeals

Anyone who believes the property tax notice is incorrect may file an objection with the relevant municipal tax office within one month of notification. It is important to distinguish between the property tax assessment notice (tax office) and the actual property tax notice (municipality): Objections to the assessed value must be filed with the tax office, while objections to the assessment rate or calculation errors must be raised with the municipality. A tax advisor can help assess the likelihood of success for an objection.

Practical Tip for Property Owners in Nuremberg and Franconia

The City of Nuremberg has set its property tax assessment rate for 2025 at 555%. In surrounding municipalities, assessment rates vary considerably-from under 400% in some rural districts to over 600% in certain cities. We recommend that property owners compare the new assessment with the previous year’s amount and verify the accuracy of the tax office’s property tax assessment notice-particularly regarding living space, lot size, and building type. If there are discrepancies, it is worth filing an appeal within the deadline.

Frequently Asked Questions

Can I pass on the property tax to tenants?

Yes, property tax is a recoverable operating cost under the Operating Costs Ordinance (BetrKV). Landlords can pass it on to tenants via the utility bill, provided this is agreed upon in the lease agreement.

What happens if I don’t pay the property tax notice?

In the event of late payment, the municipality imposes late payment penalties of 1% of the outstanding amount per month. In extreme cases, the municipality may collect the property tax through foreclosure. The property tax is also secured in rem as a public charge on the property.

As a buyer, do I have to reapply for the property tax assessment?

No, the assessment applies to the property, not to the person. After a change of ownership, the land registry office notifies the tax office and the municipality, which then issue future notices to the new owner. In the year of purchase, the buyer and seller typically clarify the pro-rata payment in the purchase agreement.

Property Tax Notice in the Operating Cost Statement

For landlords, the property tax notice is an important document for the annual operating cost statement. Property tax is billed to the tenant based on the notice. The landlord should allocate the amount accurately: If ownership changes during the year, each party is responsible only for the property tax during their respective period of ownership. If there are multiple tenants, the property tax is generally distributed among the individual tenants based on their respective shares of living space.

A common source of error in practice: The landlord calculates the property tax but does not list it as a separate item in the statement. Tenants have the right to view the underlying property tax assessment to verify the accuracy of the statement. We recommend that landlords include a copy of the property tax assessment with the operating cost statement-this saves on follow-up inquiries and makes the statement less prone to errors.

Property Tax Reform in Detail: What Has Changed in Bavaria

With the nationwide property tax reform-made necessary by a 2018 ruling of the Federal Constitutional Court-the old unit values, some of which dated back to 1964 (West Germany), were replaced by new valuation methods. Bavaria is one of the few federal states to have opted for its own state model: the so-called area model. Unlike the federal model, which takes land value and rent levels into account, Bavaria considers only land and building areas multiplied by flat-rate equivalence factors.

This has concrete implications: In expensive downtown locations in Nuremberg, the new property tax may be lower than the old amount because location is no longer a factor. In outlying areas or for large plots with small buildings, however, it may increase. Property owners should not only compare their new assessment notice with the previous year’s but also verify whether the areas cited in the notice are correct-errors regarding living space or plot size are not uncommon.

Assessment Rates Compared: Nuremberg and Surrounding Areas

The municipal assessment rate is the lever through which municipalities control the actual tax burden. While the city of Nuremberg has set the assessment rate for Property Tax B (developed and undeveloped properties) at 555%, many surrounding municipalities are significantly lower. Fürth sets it at 480%, Erlangen at 380%; smaller rural municipalities sometimes even lower. For owners who own multiple properties in the metropolitan region or are considering a purchase in a surrounding municipality, it is worth taking a look at the assessment rate as part of ongoing cost planning. We help you accurately factor the annual property tax burden into your investment decisions.

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