Bremen facing financial crisis: tax revenue falls by 47 million euros!

Bremen facing financial crisis: tax revenue falls by 47 million euros!

The state of Bremen is facing significant financial challenges. Current forecasts suggest that tax revenues will decline in the coming years. For 2026, a decrease of 47 million euros is expected compared to the autumn forecast, while a minus of 50 million euros is even forecast for 2027. This worrying information comes from Finance Senator Björn Fecker, who is based on the current tax estimate. Loud Zeit.de This development is primarily due to changes in federal tax law and economic stagnation.

Fecker warns that these financial bottlenecks do not allow any new room for maneuver for budget policy in 2026 and 2027. “There is no financial leeway,” emphasizes a representative of the Greens, calling for budgetary discipline and the setting of clear priorities, especially with regard to the economic situation and the ongoing restructuring programs.

Causes of the decline in tax revenues

The causes for this negative development are diverse. In addition to the tax law changes already mentioned, such as the Tax Development Act and the tax exemption for the subsistence level, the economic downturn is leading to significant losses of income, especially in corporate income tax and sales tax. These aspects were discussed in detail in the May fiscal estimate, which is crucial for the 2026 budget preparation, such as Bremen Senate Press Office reported.

The situation in the municipalities of Bremen and Bremerhaven, however, appears to be somewhat more stable. A total of 65.5 million euros in additional income is forecast for 2026. Bremen alone can expect an increase of 60.6 million euros in 2026 and 62 million euros in 2027. Bremerhaven also has positive figures with 4.9 million euros in 2026 and 4.4 million euros in 2027. A key driver of this positive development is trade tax.

Financing and prospects

However, revenues from various types of taxes show a mixed picture. A slump is expected in wage tax, with a loss of 43.2 million euros for 2026 and 47.7 million euros for 2027. Corporation tax is also expected to fall by 22.1 million euros in 2026 and 23 million euros in 2027. Sales tax revenue will decrease by 16.7 million euros in 2026 and by 13.7 million euros in 2027.
In contrast, there are positive developments in property transfer tax and assessed income tax.

The Bremen government is also calling on the federal government to quickly provide a legal basis for a special infrastructure fund. This is intended to facilitate the outflow of funds for investments by states and municipalities and help compensate for the decline in revenue.