Blackberry coalition increases property tax: Who has to pay more now?

Blackberry coalition increases property tax: Who has to pay more now?

A significant adjustment to the property tax is pending in Thuringia, which is being pushed forward by the so-called blackberry coalition (CDU, BSW, SPD). The planned reform will lead to an increase in the tax rate for commercially used properties, which will be raised from 0.34 to 0.59 per mille. At the same time, the tax rate for private homes and multi-family homes is to fall from 0.31 to 0.23 per thousand. These measures were initiated to counteract the dissatisfaction of apartment owners over increased tax payments as a result of the previous property tax reform introduced by the red-red-green state government.

The Blackberry Coalition is using an opening clause to create its own regulation for Thuringia and thus modify the federal model of the previous state government. The adjustments are part of a broader discussion about fair tax rates for different types of properties.

Political groups submit their own suggestions

The Die Linke faction is also active in Thuringia's political landscape and has introduced its own bill on property tax into parliament. This provides for relief for tenants and owners to be introduced from January 1, 2026. The Left sharply criticizes the government because it considers progress on property tax reform to be too slow. The party warns that renters and homeowners will face excessive burdens for another year.

In its draft law, Die Linke also plans to place a greater tax burden on commercial space. Interestingly, the draft does not make any changes to residential properties; Instead, municipalities should adjust the assessment rates in order to reduce the burden.

Reform lead and economic effects

The Thuringian Association of Municipalities and Cities also expresses concern about the upcoming reforms and warns against hasty implementation. Association President Steffen Kania from the CDU explains that a reform is not realistic until the beginning of 2027 at the earliest. He emphasizes that the quality of reform should take precedence over speed.

The financial aspects of the planned reform are not insignificant. The total cost is estimated at around three million euros, with two million euros earmarked for the recruitment of temporary staff in the tax administration. In addition, costs arise from sending around 865,000 new notifications and programming work. It should be noted that the new calculation of property tax has been in effect since January 1, 2025 and the Federal Constitutional Court has called for property tax reform.

Residential buildings in Thuringia currently pay higher taxes compared to commercial buildings. The property tax flows entirely to the municipalities, which can generate around 240 million euros in income annually. Thuringia is based on a model from Saxony, which is known as the “Saxon model”. This model allows municipalities to set different assessment rates for residential and non-residential buildings.

The upcoming changes in property tax policy will be closely followed by both relevant political actors and the public as they could have a significant impact on the financial situation of tenants, property owners and businesses.

For more information, see the reports on in southern Thuringia and MDR.