Property Tax in the Nebenkostenabrechnung 2026: What Tenants Need to Know Now

What Changed?

In 2018, the Federal Constitutional Court declared the previous property tax calculation unconstitutional: the underlying unit values dated from 1964 (West) or 1935 (East) and no longer reflected actual circumstances.

With the Grundsteuerreformgesetz (November 2019), a reassessment of all roughly 36 million properties was ordered:

• Reference date January 1, 2022: all properties were reassessed as of this date.
• 2022-2024: tax offices sent new property tax value notices and property tax assessment notices.
• January 1, 2025: the new property tax takes effect. Municipalities charge tax for the first time based on the new values.
• 2026: the first Nebenkostenabrechnung with the new amounts reaches you.

The calculation formula remains basically the same: property tax value × tax assessment number × municipal multiplier = property tax. However, property tax values and tax assessment numbers have in some cases changed considerably — and not every municipality adjusted the multiplier so that the burden remains the same for everyone.

Different Models by Federal State

A special feature of the reform is the Länderöffnungsklausel: each federal state was allowed to develop its own valuation model. This creates considerable regional differences:

• Federal model (value-based): Berlin, Brandenburg, Bremen, Mecklenburg-Western Pomerania, NRW, Rhineland-Palatinate, Saxony-Anhalt, Schleswig-Holstein, Thuringia, Saarland, Saxony. Calculation based on the current property value.
• Bavaria — area model: only land and building area count, not market value. Advantage for expensive locations (Munich), disadvantage in rural areas.
• Baden-Württemberg — land value model: only the standard land value is included; the building value is excluded.
• Hamburg — residential-location model: distinguishes between "normal" and "good" residential locations with different tax assessment numbers.
• Hesse, Lower Saxony: own area models with location factors.

For you as a tenant, this means: the amount in your bill can develop very differently depending on the federal state and model — even for comparable apartments.

Effect on Your Nebenkostenabrechnung

Property tax is part of the allocable operating costs under § 2 para. 1 no. 1 BetrKV ("ongoing public charges on the property"). The landlord may pass it on to tenants in full — provided the lease contains a corresponding agreement.

Previous average: According to the Deutscher Mieterbund Betriebskostenspiegel, property tax was last around €0.17/m²/month — for an 80 m² apartment, about €163 per year. After the reform, these amounts may rise or fall significantly depending on location and model.

Revenue neutrality only means that the municipality takes in the same overall amount — not that each individual pays the same. According to Verband Wohneigentum, after the reform three out of four owners pay more than before. These additional costs are passed on to tenants.

Common Errors in Property Tax Allocation

Especially in the first year after the reform, the error rate is particularly high. Watch for these typical issues:

1. Outdated property tax notice: the landlord allocates the old amount even though a new notice has applied since 2025 — or the reverse: the new notice is applied retroactively to 2024 as well.
2. Commercial shares allocated to residential tenants: in mixed-use buildings (commercial + residential), the full property tax is distributed among residential tenants even though part relates to the commercial areas.
3. Wrong allocation key: property tax is distributed by residential units instead of living space — or the square-meter figure used is incorrect.
4. Wrong living space: the total building area or your individual living space used in the bill differs from the actual size.
5. Missing lease basis: the lease contains no operating-cost agreement, but the landlord allocates property tax anyway.
6. Billing deadline missed: the bill for 2025 must reach the tenant by December 31, 2026 at the latest (§ 556 para. 3 BGB). If it arrives later, an additional demand is generally excluded — unless the landlord was not responsible for the delay.

Special Case: Mixed-Use Buildings

A frequent point of dispute concerns buildings with commercial and residential units. In its judgment of May 10, 2017 (VIII ZR 79/16), the BGH decided that the landlord does not have to make a preliminary deduction of the commercial share for property tax. Property tax is a "yield-independent property tax" that concerns the whole property.

This means: The landlord may distribute the entire property tax according to the general allocation key (usually living space) among all tenants — including residential tenants in buildings with commercial units.

However: if the lease or a separate agreement provides for a preliminary deduction, that agreement applies. And in some state models, the property tax value is already differentiated by type of use, so the residential share is lower in the notice itself.

Your Rights as a Tenant

If the property tax in your bill seems too high, you have several options:

1. Request receipt inspection (§ 259 BGB): You have the right to inspect the property tax notice and the property tax assessment notice. The landlord must present the originals for inspection. If this is refused, you can generally withhold the additional payment until inspection is granted.

2. Object to the bill: If you find errors — wrong allocation key, wrong area, outdated notice — object to the bill in writing within 12 months after receipt. A sample objection is available in our article Objection: template, deadlines & guide.

3. Pay under reservation: If you have to make an additional payment that you consider incorrect, pay "under reservation of repayment". This avoids rent arrears while preserving a repayment claim.

4. Ask the landlord to review: If the property tax value is obviously too high (more than 40% above the actual market value), the owner can submit an expert report to the tax office. As a tenant, you can point this out to the landlord — the deadline for objections against the property tax notices (4 weeks) has, however, already expired in most cases.

Current Political Developments

The allocation of property tax to tenants is politically controversial:

• BFH judgment (December 2025): The Bundesfinanzhof declared the federal model constitutional — though in a narrow 3:2 decision. Constitutional complaints before the Federal Constitutional Court are being prepared.
• Berlin — Bundesrat initiative: Berlin has launched an initiative to abolish the allocability of property tax to tenants completely. The real-estate industry warns that landlords would then price the costs into the Kaltmiete.
• Ongoing proceedings: lawsuits against the state models (Baden-Württemberg, Hamburg, Hesse, Bavaria) are pending before the BFH. Final clarification may still take years.

What does this mean for you? At present, allocation is legally permitted. If the Federal Constitutional Court overturns the reform, amounts already paid might be recoverable in some circumstances — but a binding statement is not yet possible.

Checklist: Checking Property Tax in the Bill

• Was the current property tax notice (from 2025) used?
• Is the applied allocation key correct (usually by m²)?
• Is your living space stated correctly?
• For a mixed-use building: was the property tax allocated appropriately?
• Is the property tax significantly above €0.17/m²/month (federal average)?
• Does the lease contain an operating-cost agreement?
• Did the bill arrive on time (within 12 months)?

Further Reading

• Objection: template, deadlines & guide
• All deadlines for tenants at a glance
• The 5 most common errors in Nebenkostenabrechnungen
• Utility costs too high? How to check your bill

Have Property Tax Checked

Are you unsure whether the property tax in your bill was allocated correctly? NeKo Check reviews your entire Nebenkostenabrechnung automatically — including property tax, allocation key, and billing deadline. If errors are found, you receive an understandable report with a finished objection letter.

Frequently Asked Questions