Property Tax USA vs Germany – Real estate ownership obligates, especially to property tax, whether you are a real estate owner in the USA or in Germany. Here’s a little insight into the differences between USA and Germany with a look at purpose, calculation, tax amount and payment deadlines.
Property tax: what is it?
What is property tax (real estate): Simply explained?
Property tax is an annual tax levied on the ownership of land or real estate. It is used to finance public services such as road construction, fire departments, police and schools.
The amount of property tax is usually calculated on the basis of the estimated market value / Verkerhwert or the standard land value of the land. In some regions, the property tax may also be based on the size or condition of the building located on the property.
The property tax can vary depending on the state or municipality in the USA. In Germany, it varies from state to state.
As a rule, owners or beneficiaries must pay the property tax annually or quarterly.
Property tax comparison
Property taxes in the U.S. and Germany differ in several important respects:
- Purpose of the tax
- Calculation and basis
- Tax rate and amount
- Payment and deadlines
Purpose of the tax
Property tax in the USA is used to fund public services such as schools, roads and public safety. In Germany, the property tax is used to tax the ownership of a piece of land.
Calculation and basis
In the USA, property tax is calculated on the basis of the estimated market value of the land. In Germany, property tax is calculated on the basis of the value of the land, which is derived from the standard land value and the building expense.
Tax rate and amount
The tax rate for property tax in the USA varies from state to state and from municipality to municipality. In Germany, the tax rate for property tax is set by law and is generally between 300 and 600 percent of the standard land value.
Payment and deadlines
Property tax in the USA is due annually and must be paid by the owners. In Germany, property tax is generally due quarterly and can also be paid by the owners or by the beneficiaries of the property.
Overall, the differences between property taxes in the U.S. and Germany are significant, but they serve both countries to fund public services.
Facts at a glance: Tax table
Here again in direct comparison, the property tax in the U.S. and in Germany:
|Feature||Property tax in the USA||Property tax in Germany|
|Purpose||Financing of public services||Taxation of real estate|
|Calculation||Estimated market value of the land||Standard land value and building expenses|
|Tax rate||Varies (state/municipality)||Set by law (300-600% of the standard land value).|
|Payment||Annually by owner||Quarterly by owner or beneficiary|
This table contains the main differences between the property tax!
Here are the most important links for Germany and the USA with a focus on the states of New York and California.