Property Tax (Grundsteuer)
Property tax (Grundsteuer) in Bavaria: calculation, municipal multiplier rate, and reform - what property owners in Germany need to know.
Financial
GrStG, BayGrStG
Also known as: land tax, real estate tax
Property tax (Grundsteuer) under German law is calculated as: assessed property value (determined by the tax office) x tax assessment rate (set by law) x municipal multiplier (set by the municipality). Bavaria, for example, applies a value-independent area-based model since 2025. For rental properties, the property tax can be passed on to tenants as part of the operating costs.