Hamburg collects 519 million euros in property tax - Hamburg's property tax overhaul brings record revenue and sweeping reforms by 2025
Hamburg has seen major shifts in property tax revenue, with sharp changes across different categories in 2022. The city collected nearly €519 million last year, making it one of the most significant sources of municipal income. New reforms will also take effect in 2025, altering how properties are assessed and taxed.
Property Tax B, which applies to developed land, brought in €515 million in 2022. This marked a modest increase of 2.9 percent compared to the previous year.
Meanwhile, Property Tax A—levied on agricultural and forestry businesses—plummeted by 78.6 percent. Revenue from this category dropped to just €150,000. A new category, Property Tax C, was introduced to target undeveloped but build-ready plots. In its first year, it generated around €4 million. The surcharge for this tax is set at 8,000 percent, a deliberate measure to push landowners toward developing vacant sites. The reforms follow a 2018 Federal Constitutional Court ruling that required updates to property tax rules. Hamburg's approach now bases assessments on land area and location. Starting in 2025, these new rules will fully apply to all property tax evaluations in the city.
The changes reflect Hamburg's efforts to modernise its tax system while encouraging development. With Property Tax C already generating revenue and stricter assessments on the horizon, the city expects further adjustments in the coming years. The reforms aim to balance municipal income with incentives for land use.
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