FAQ on the property tax reform

On April 10, 2018, the Federal Constitutional Court declared the previous nationwide regulation for calculating property tax to be unconstitutional - primarily because the previous calculation did not take into account changes in value and therefore led to unequal treatment. Owners of older properties sometimes had to pay significantly less property tax for comparable properties than owners of younger properties for years or even decades. Following this ruling, the federal government and the federal states have revised the calculation of property tax assessment amounts. As a result, the municipal assessment rates must also be adjusted. The reform came into force on January 1, 2025.

The property tax is calculated unchanged by multiplying the individual property tax assessment amount by the municipality's new assessment rate (the result is then divided by 100 for the annual property tax total). This does not change. However, the calculation of the property tax assessment amount is new: different calculation bases have been defined for this depending on the federal state. The state of Hesse has opted for its own area factor model. This applies to the whole of Hesse.

In contrast to the past, the year of construction no longer plays a decisive role in the new calculation, but the standard land value of the property does, along with other factors. The City of Offenbach has no influence on this new calculation model and the effects on the respective tax assessment amount.

The tax assessment amounts have changed significantly in some cases. In many cases they have fallen, in others they have risen. For this reason, the property tax reform means that local authorities across Germany will also have to adjust their assessment rates, as otherwise they would either receive significantly less or significantly more money. However, the aim is for the reform to be "revenue-neutral". This means that the municipalities should not generate more or less total revenue after the reform than before the reform.

In 2024, the city of Offenbach expects to generate revenue of 46 million euros from property tax. This total sum will be generated on the basis of the old (still valid) tax assessment amounts and the previous assessment rate of 895 points. However, without an increase in this assessment rate, the city would receive significantly less in 2025 due to the new tax assessment notices. In order to be able to generate around 46 million euros in 2025, the assessment rate must be raised to 1230 points.

Other major cities in Hesse, including Frankfurt, Kassel and Wiesbaden, will also have to increase their assessment rates, in some cases significantly. In Darmstadt, for example, it would have to rise from 875 to 1,180 points. In many other municipalities, the assessment rate can be lowered due to the sum of the measured amounts.

Because many Offenbach properties and real estate have received a lower tax assessment amount than before in the course of the new calculation, the city would generate significantly less revenue from property tax than before the reform if the assessment rate remained the same at 895 points (year 2024). With the reform, however, the cities should neither receive less nor more money from property tax. The objective is revenue neutrality: the city should have roughly the same revenue after the reform as before. For this reason, a new assessment rate of 1,230 points is required for Offenbach. This will ensure revenue neutrality - the city will collect a total of 46 million euros from property tax in 2025, as it will in 2024.

Unlike in the past, the increase in the assessment rate does not constitute a tax increase. Due to the considerable changes to the tax assessment amounts in some cases, it is necessary for almost all municipalities to change their assessment rate. The reform is to be "revenue-neutral", i.e. the local authorities are to generate neither less nor more revenue than before from property tax. This means that the revenue from property tax will remain the same for the city.

The Hessian tax authorities have calculated for all municipalities in Hesse what assessment rate would be necessary for the municipalities to generate the same income from property tax as before the reform. For the city of Offenbach, an assessment rate of at least 1,201 points (previously: 895 points) would be required to achieve total revenue of €46 million, as in 2024 (the year before the reform). Compared to the Hessian tax authorities, the City of Offenbach used the most up-to-date figures for the exact calculation of the assessment rate. This data resulted in the revenue-neutral assessment rate of 1230 points. The final and legally binding determination of the calculated assessment rate is expected to be adopted by the municipal council on March 20.

Important to know: The new assessment rate is no longer comparable with the old assessment rate - unlike previous changes. Municipal comparisons are also no longer as meaningful as in the past due to the fundamentally new calculation of the tax assessment amounts. The required level of the assessment rates depends largely on the total sum of the individual tax assessment amounts.

Due to the economic situation, a property tax increase of up to 300 points is currently expected from 2027. This is what the current medium-term financial planning envisages. However, by making further savings and calling on the state of Hesse to provide municipalities with better financial resources, the city is endeavoring to prevent such an increase if possible or to keep it to a minimum.

Due to the new calculation basis, which the state of Hesse has set uniformly for Hesse, the tax assessment amounts will change for almost all owners: They will be lower in some cases and higher in others. This also changes the amount of property tax to be paid.

The old calculation resulted in different tax amounts for land and properties that are actually comparable or even identical in terms of location and size, depending on when the value was determined. As a result, properties that had not been revalued for a long time had to pay a lower amount of tax than properties that had been valued more recently. According to the ruling of the Federal Constitutional Court, this violated the requirement of equal treatment under the Basic Law. The state's new calculation method now brings the tax amounts into line: For older buildings that have not been revalued for a long time, the property tax therefore increases. For newer buildings, whose value has been determined more recently, it therefore tends to be cheaper.

For Offenbach, this means that around 39 percent of land and properties will become considerably more expensive (!), while around 61 percent will become cheaper. The decisive factor as to whether more or less has to be paid is the new individual tax assessment amount, which was calculated after the valuation.

As property tax can be allocated to ancillary costs, the reform also affects all tenants. For them too, some will have to pay less from this year, while others will have to pay significantly more. You should therefore discuss an adjustment of the advance payments for ancillary costs with your landlord/landlady in good time.

Whether you have to pay more or less from 2025 depends largely on your new property tax assessment amount. If this falls, you will generally have to pay less. If it increases, you will have to pay more property tax. You can calculate the expected amount now. To do this, multiply your tax assessment amount by the assessment rate of 1230 points of the city of Offenbach. Please note, however, that the assessment rate will not be decided until March 2025. Although major deviations are not to be expected, it may still be slightly higher.

Example calculation:

Your tax base is 68.00. The city's future assessment rate is 1230 points.

You multiply your taxable amount by the assessment rate. Divide the result by 100.

68,00 x 1230 = 83640
83640 ÷ 100 = 836.40 euros annual property tax amount

The SEPA direct debit mandate issued to date remains valid unless you revoke it. The current SEPA direct debit mandate will be printed on the new property tax assessment notice. If no bank details are stated there and you have not issued a standing order to your bank, you must transfer the stated amounts yourself on the stated due dates. If you would like to issue us with a new SEPA direct debit mandate or notify us of your changed bank details, you are welcome to use our online SEPA direct debit mandate form (opens in a new tab) on our website (opens in a new tab). You can also find the form to download in PDF format on our homepage under Financial Accounting - Links and Downloads (opens in a new tab).

If you have not yet canceled your standing order, please adjust it by the next due date in May. In April, you will receive your property tax notice from the city with the new amount of property tax to be paid. In May, the payment for the first quarter of 2025 (January to March) will be due together with the regular due date for the second quarter of 2025 (April to June). We will offset the amount already paid by standing order against this statement. If you wish, you can also issue a Sepa direct debit mandate for the future. This makes billing easier for you and for us. If you have not yet canceled your standing order, please adjust it by the next due date in May. In April, you will receive your property tax assessment notice from the city with the new amount of property tax to be paid. In May, the payment for the first quarter of 2025 (January to March) will be due together with the regular due date for the second quarter of 2025 (April to June). We will offset the amount already paid by standing order against this statement. If you wish, you can also issue a Sepa direct debit mandate for the future. This will make billing easier for you and for us.

You are liable to pay property tax in the same way as all other taxes. Nevertheless, there will be cases of hardship. In the event of payment difficulties, please contact the financial accounting department of the municipal treasury in good time to discuss possible installment payments.

In all federal states, listed buildings receive preferential property tax treatment. In order to claim this concession, you must enter the details of your listed building in a separate annex to the property tax return for the tax office. If you have any questions, please contact the Fulda tax office, which has been responsible since 01.08.2025, on 0661-9610-0.

Questions about architectural monuments, monument protection and ensemble protection can be answered by the Lower Monument Protection Authority department in the Building Supervisory Office (Amt 63) and the colleagues in the Building Office. The contact details are: 069 8065 2564 or by e-mail at bauaufsichtsamtoffenbachde

You can also find all currently known cultural monuments and complete sites in Hesse in the register of monuments (until recently: Denkmalbuch). This is maintained by the State Office for Monument Preservation and can be viewed at DenkXweb (opens in a new tab).

Property tax is payable by all owners of developed and undeveloped land (property tax B) as well as agricultural land and agricultural and forestry businesses (property tax A). In the case of residential buildings, however, it can still be passed on to tenants as ancillary costs (section 2 no. 1 of the Operating Costs Ordinance).

Yes - property tax can be passed on to tenants as part of the ancillary costs (Section 2 No. 1 of the Operating Costs Ordinance). It is therefore advisable to ask your landlord or landlady whether the proportion of property tax you have to pay has changed. You can then adjust your monthly advance payments.

Alongside trade tax, which is subject to strong economic fluctuations, property tax is one of the most important sources of income for local authorities: this money is needed to finance social expenditure for children and families, staff and buildings for daycare centers and schools, playgrounds, services for senior citizens and many other important tasks - including in the area of infrastructure.

In principle, the tax assessment amount for owners will change more frequently in future than in the past. This is precisely the consequence of the ruling by the constitutional judges: they had criticized the fact that the value development of old properties and real estate was not taken into account in the previous calculation. They were often valued for decades according to criteria from 1964. For more recent properties, on the other hand, the current value of the land and building was used. This led to the unequal treatment of property that was criticized.

According to the new Property Tax Act, the first main assessment (revaluation) will take place on 01.01.2022 (this has now happened) and thereafter at 14-year intervals. However, the tax assessment amounts determined in the main assessment will only apply for the first time from 01.01.2025. The next main assessment would therefore be due on 01.01.2036 and would apply from 01.01.2037.

After a main assessment, the tax assessment amount remains unchanged for 14 years. This means that any changes in standard land values or other criteria in the meantime are not taken into account. Only at the next main assessment 14 years later will a new valuation and calculation be carried out based on the then current values.

Irrespective of this process, which relates to the tax assessment amount, the property tax can change again earlier if the local authority changes its assessment rate.

As a result of the property tax reform, taxation for buildings on third-party land is transferred from the user to the owner of the land, so that the tax liability for users of the buildings no longer applies.

If you have any questions about your property tax assessment notice, please contact the tax office only. Please understand that the City of Offenbach cannot provide any information in this regard. You will find the contact details for the tax office in your property tax assessment notice. Alternatively, please contact the Fulda tax office, which has been responsible since 01.08.2025, by telephone on 0661-9610-0, referring to your EW file number.

The file number (16 digits), also known as the "Einheitswertaktenzeichen" or "EW-Az.", can be found on the last assessment notice from the tax office or on the last property tax assessment notice you received from the city of Offenbach am Main.

Important: Please also inform the tax office in writing of any changes that have occurred since you received your most recent property tax assessment notice. Use a postal letter or e-mail for this purpose.

The tax department of the municipal tax office will be happy to answer your questions by telephone on 069 8065-2212 or by email at grundsteueroffenbachde. You will also find the contact person responsible for you on your last property tax assessment notice.

Due to the many inquiries and cases that are expected to be processed, the city will temporarily increase the number of staff in the tax department. However, please understand that it may take longer than usual to process your inquiries in the near future.