German municipalities achieved a record high in trade tax revenue in 2024, totaling approximately 75.3 billion euros, according to data released Thursday by the Federal Statistical Office (Destatis). This represents a slight increase of around 0.2 billion euros, or 0.2 percent, compared to the previous year.
The revenue has been on an upward trajectory since 2021, recovering from a decline experienced in 2020 at the onset of the COVID-19 pandemic and reaching new peaks in subsequent years, based on records dating back to 1991.
Significant increases in trade tax revenue were observed in Mecklenburg-Vorpommern, with a growth of 9.8 percent and Rhineland-Palatinate, registering a 9.0 percent increase. Among the city-states, Bremen experienced a rise of 13.5 percent.
However, more than half of Germany’s federal states reported a decrease in trade tax revenue compared to the previous year. Saxony-Anhalt experienced the most substantial decline at 9.9 percent, followed by Saarland and Thuringia, both with declines of 5.0 percent. Hamburg and Berlin, among the city-states, recorded decreases of 9.3 percent and 3.2 percent, respectively.
Revenue from property tax on agricultural and forestry holdings (property tax A) totaled 0.4 billion euros in 2024, a 2.9 percent increase year-over-year. Revenue from property tax on land and buildings not related to agriculture or forestry (property tax B) reached 15.6 billion euros, marking a 3.8 percent increase.
Effective January 1, 2025, property tax will be assessed based on reformed rules and newly determined assessment rates. This follows the introduction of a so-called “federal state opening clause” within the property tax reform, which has now been adopted by several states.
Overall, German municipalities generated approximately 91.4 billion euros in revenue from real estate taxes – encompassing trade and property taxes – in 2024. This represents an increase of 0.8 billion euros, or 0.8 percent, compared to 2023.
The assessment rates set by municipalities for trade tax, as well as property tax A and B, significantly influence the total revenue generated. In 2024, the average assessment rate across all German municipalities for trade tax was 409 percent, a 2 percentage point increase from the previous year. For property tax A, the average assessment rate rose by 7 percentage points to 362 percent and for property tax B, it increased by 13 percentage points to 506 percent during the same period.