Amount of property tax for house and apartment: explanation, calculation + example

Amount of property tax for house and apartment – Even after your real estate purchase, taxes are incurred on a regular basis. One of the most important taxes is the property tax, which is levied four times a year. The amount varies depending on the type of house and apartment, state and property value. Find out here which factors influence the property tax and how to calculate it – including an example at the end!

Property tax: definition & explanation

The property tax is not to be confused with the land transfer tax. While the real estate transfer tax is only due once when a property or land is purchased, the property tax is levied four times a year. There is a distinction between property tax “A” and property tax “B”. While property tax “A” is levied on real estate and land for agricultural and forestry use, property tax “B” applies to other developed land and buildings. Thus, yield real estate and investment real estate fall into group “B”.

  • Land tax “A” for land for agricultural and forestry use
  • Real estate tax “B” for other developed and developable land plots

Calculation of property tax: important factors

There are several factors that influence the amount of property tax. These include the assessed value of the property, the individual levy rate, the state, as well as the type of property.

Here at a glance:

  • Collection according to real estate value (assessed value), taxed property
  • Municipality (individual assessment rate)
  • State (old or new states)
  • Type of real estate (house, duplex, apartment, other)

Let’s now take a closer look at this.

Unit value: value of the real estate

The standard value is the value of the real estate or the value of the property. Here is a short example calculation:

  • Determined unit value: 100,000
  • X Property tax rate: 0.35%
  • X Municipal assessment rate (B): 470%.
  • = Real estate tax rate

So, you need to know 1) the value of your property (assessed value), 2) the property tax rate for your property type, and 3) the municipal assessment rate (B).

Levy rate & property tax code: location and property type

The levy rate is an individually determined figure set by the city or municipality. It is multiplied by the assessed value of your property. The same applies to the property tax code. This depends on the federal state and the type of property.

You can find the exact property tax figures by state here: Property tax for real estate

For example, the property tax figure in Hamburg differs from the property tax figure in Berlin.

Example: Apartment for 100,000 euros

Let’s look at a quick example to finish:

  • Determined unit value: 100,000
  • Property tax rate: 0,35% = 350 Euro
  • Municipal assessment rate (B): 470% = 1,645 euros
  • = 1,645 Euro or in the quarter 411.25 Euro (basic tax rate)

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