Dortmund increases property tax: what this means for owners!

On December 12, 2024, the City Council of Dortmund decided to increase the property tax moderately from January 2025. This property tax reform will come into force on January 1, 2025 and enables the municipalities to differentiate the lifting rates for residential and non-residential plots.

The following lifting rates were determined in Dortmund: For land and forestry-used land (property tax A), the rate is 450 percent, which represents an increase of 325 percent. For non -residential plots, such as business properties, the rate is 1,245 percent. For residential plots, the sentence is raised to 625 percent, from previously 610 percent. These changes mean that the tax burden for owners of residential real estate increases by 15 percent, but remains largely stable.

goals and effects of the reform

The property tax reform aims not to increase the housing costs unnecessarily for citizens. With this differentiated approach, Dortmund pursues the intention to keep the property tax volume stable. The reform is said to be new, which means that the property tax volume remains constant compared to previous years. In theory, the tax burden is redistributed, which results in relief for residential property and a higher load on commercial properties.

In addition, the city administration proposes to maintain the previous uniform rate for property tax B. The planned rate for property tax B is 795 percent, previously it was 610 percent. The proposal for property tax A of 450 percent corresponds to the recommendation of the Ministry of Finance NRW from September 2024. Property tax A applies to land and forestry-based land, while property tax B is used for all other properties. The city expects the property tax volume to remain constant despite the new evaluation rules, so that there are no additional income.