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Salzgitter hikes property tax multipliers to counter revenue slump

A 2018 court ruling triggered a property revaluation—now Salzgitter is scrambling. Will higher multipliers fix the city's shrinking tax revenue?

, and Administrator

2026 April 23 . 8:11 PM

1 min read

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Salzgitter: City Plans Sharp Increase in Property Tax Rates

Salzgitter hikes property tax multipliers to counter revenue slump

The city of Salzgitter intends to significantly raise property tax multipliers. A corresponding resolution is set to be adopted by the city council in its next session. The move comes in response to substantial revenue losses following the revaluation of properties—a process mandated by a ruling from Germany's Federal Constitutional Court.

The court had already called for a nationwide property reassessment in 2018, deeming the previous valuation system (based on uniform assessments) unconstitutional. The new evaluation criteria took effect at the start of 2025. Discussions about increasing tax multipliers began as early as mid-last year but were initially rejected due to insufficient data at the time.

Significant Revenue Shortfalls

While the reform aimed to create a fairer property tax system without causing revenue losses or gains for municipalities, Salzgitter has clearly suffered financially. Tax revenue from Property Tax A (applicable to agricultural and forestry operations) dropped from €441,871.67 in 2024 to just €288,206.38 in 2025. Meanwhile, Property Tax B (for private properties) fell from €24,529,376.36 to €22,506,810.35 over the same period.

To offset these losses, the city plans to retroactively raise the multipliers as of January 1, 2026. The rate for Property Tax A will jump from 390% to 600%, while Property Tax B will increase from 540% to 590%. The trade tax multiplier, however, will remain unchanged at 440%.