Property Transfer Tax Calculator: Work Out the Rate by Federal State
Calculate the property transfer tax (Grunderwerbsteuer) for your federal state, with an interactive map of Germany, a fixtures deduction and all current 2026 rates. Free, instant, no sign-up.
Last updated: February 2026
Select a federal state on the map or in the dropdown
Tax rate overview of all federal states
Property transfer tax for a purchase price of €300,000 (default value)
| Federal state | Tax rate | Tax |
|---|---|---|
| Bayern | 3.5% | €10,500 |
| Baden-Württemberg | 5.0% | €15,000 |
| Niedersachsen | 5.0% | €15,000 |
| Rheinland-Pfalz | 5.0% | €15,000 |
| Sachsen-Anhalt | 5.0% | €15,000 |
| Thüringen | 5.0% | €15,000 |
| Bremen | 5.5% | €16,500 |
| Hamburg | 5.5% | €16,500 |
| Sachsen | 5.5% | €16,500 |
| Berlin | 6.0% | €18,000 |
| Hessen | 6.0% | €18,000 |
| Mecklenburg-Vorpommern | 6.0% | €18,000 |
| Brandenburg | 6.5% | €19,500 |
| Nordrhein-Westfalen | 6.5% | €19,500 |
| Saarland | 6.5% | €19,500 |
| Schleswig-Holstein | 6.5% | €19,500 |
What is the property transfer tax (Grunderwerbsteuer)?
The property transfer tax (Grunderwerbsteuer) is a one-off tax due when you buy a property or plot of land in Germany. It is paid by the buyer and is usually the single largest item among the closing costs, ahead of notary, land registry and agent fees.
The legal basis is the property transfer tax act (Grunderwerbsteuergesetz, GrEStG). Since the 2006 federalism reform, the federal states have been allowed to set the rate themselves. This has led to considerable differences: the range currently runs from 3.5% in Bayern to 6.5% in Brandenburg, Nordrhein-Westfalen, Saarland and Schleswig-Holstein.
In concrete terms: on a purchase price of €400,000, the transfer tax ranges from €14,000 to €26,000 depending on the federal state, a difference of €12,000. Our calculator shows you instantly how much you would pay in your state.
Property transfer tax by federal state: all rates for 2026
The rate overview above shows all current property transfer tax rates sorted by amount. Bayern has stayed at the nationwide minimum rate of 3.5% ever since it was introduced in 1997, the only federal state to do so. Every other state has raised the rate at least once.
Notable developments: Thüringen is the only federal state ever to have lowered its property transfer tax rate, from 6.5% to 5.0% on 01.01.2024. It was a political signal that has so far found no imitators. Bremen most recently raised its rate from 5.0% to 5.5% on 01.07.2025. Sachsen raised its rate from 3.5% to 5.5% in 2023, the second-to-last state to do so.
The trend is clear: the property transfer tax is an important source of revenue for the federal states. Cuts are the absolute exception. That makes it all the more important to know the legal ways to save.
5 legal ways to save on property transfer tax
1. Itemise fixtures separately in the purchase contract
Movable items such as a fitted kitchen, awning, sauna, garden shed or furniture are not subject to property transfer tax if they are listed individually in the purchase contract and valued realistically. With a fixture value of €20,000 and a rate of 6.5%, you save €1,300. Important: the fixture share should not exceed 15% of the purchase price, otherwise the tax office will scrutinise it especially closely. Use our calculator with the fixtures deduction enabled to see your saving directly.
2. Buy the plot and the building separately (new build)
For a new build: if the land purchase and the construction contract are concluded separately, with different contracting parties and at least 6 months apart, property transfer tax applies only to the price of the land. On €100,000 of land instead of a €400,000 total price: a saving of up to €19,500 (at 6.5%). Note: the tax office checks whether there is a substantive connection between the contracts.
3. Maintenance reserve when buying a condominium
When buying a condominium (Eigentumswohnung), the pro-rata maintenance reserve (Instandhaltungsrücklage) can be shown separately in the purchase contract. This amount is not subject to property transfer tax (Federal Fiscal Court ruling II R 1/14). A typical figure is €5,000 to €20,000, depending on the age and size of the building complex.
4. Use state subsidy programmes
Some federal states offer relief for first-time buyers: Hessen pays the “Hessengeld”: €10,000 per buyer plus €5,000 per child (since 01.03.2024, paid out over 10 years, capped at the amount of property transfer tax paid). Thüringen grants a €25,000 allowance for first-time buyers who occupy the property themselves.
5. Negotiate the purchase price
It is often more effective to negotiate a few thousand euros off the purchase price than to look for complicated tax-saving constructions. Every euro less on the purchase price also directly lowers the property transfer tax. At a 6.5% rate, every €10,000 you negotiate off saves exactly €650 in transfer tax, on top of the savings on notary and land registry costs.
Who pays the property transfer tax?
Legally, buyer and seller are joint and several debtors (§ 13 GrEStG). This means both are liable to the tax office. In practice, however, the purchase contract almost always stipulates that the buyer pays the property transfer tax. The seller is only secondarily liable, should the buyer fail to pay.
The process after the notary appointment: the notary (Notar) reports the purchase contract to the tax office. The tax office then issues the property transfer tax assessment, usually within 4 to 8 weeks of notarization. From receipt of the assessment, you have 1 month to pay. Once paid, the tax office issues the clearance certificate (Unbedenklichkeitsbescheinigung). Only then can the change of ownership be entered in the land register (Grundbuch).
Important: without payment of the property transfer tax, no change of ownership takes place in the land register. The tax is therefore a mandatory prerequisite for becoming the legal owner.
When is no property transfer tax due?
The property transfer tax act provides for several exemptions (§ 3 GrEStG):
- Purchase price below €2,500: the de minimis threshold (§ 3 No. 1 GrEStG). Note: this is an exemption limit, not an allowance. At €2,501 the full tax is due.
- Transfers between spouses or registered civil partners (§ 3 No. 4)
- Relatives in a direct line: parents ↔ children, grandparents ↔ grandchildren (§ 3 No. 6)
- Inheritance: an acquisition by reason of death is free of property transfer tax (but inheritance tax may apply)
- Gift: free of property transfer tax (but gift tax may apply)
- Division on divorce (§ 3 No. 5/5a)
Common misconception
Siblings are not exempt! Transfers between siblings trigger property transfer tax. Many buyers are unaware of this.
Note: the property transfer tax exemption for partnerships (§ 5, § 6 GrEStG) expires at the end of 2026. This is relevant for commercial property buyers.
Property transfer tax and a possible allowance: the political outlook for 2026
The 2025 coalition agreement (CDU/CSU + SPD) provides for the federal government to create the legal basis allowing the federal states to introduce an allowance for first-time buyers. The proposal: up to €250,000 per adult plus €150,000 per child.
Example calculation: a family of 2 adults and 2 children would have an allowance of up to €800,000. On a purchase price of €500,000, the entire property transfer tax would be exempt, a potential saving of €17,500 to €32,500 depending on the federal state.
Important caveat: the federal government only creates the legal framework. Each federal state decides for itself whether and how to implement the allowance. A federal law is expected in 2026/2027 at the earliest, with the state laws to follow. Nothing has been decided yet.
Already in force: Hessen has the “Hessengeld” (since 01.03.2024), and Thüringen has a €25,000 allowance for first-time buyers who occupy the property themselves.
Grunderwerbsteuer vs. Grundsteuer: the difference
Despite the similar names, the property transfer tax (Grunderwerbsteuer) and the property tax (Grundsteuer) are fundamentally different:
| Grunderwerbsteuer | Grundsteuer | |
|---|---|---|
| Type | One-off, at purchase | Annual, ongoing |
| Legal basis | GrEStG | GrStG |
| Set by | Federal state | Municipality (assessment rate) |
| Rate | 3.5–6.5% of the purchase price | Property value × base figure × assessment rate |
| Typical amount | €10,000–30,000 | €200–1,500/year |
| Paid by | Buyer | Owner (can be passed on to tenants) |
Can you deduct property transfer tax?
Owner-occupiers: no. The property transfer tax on your own flat or house is not tax-deductible. It is recognised neither as income-related expenses nor as special expenses.
Investors and landlords: yes. The property transfer tax counts as an incidental acquisition cost and is written off via depreciation (AfA, Absetzung für Abnutzung). It increases the base for the building depreciation and is written off over 40 to 50 years (2% or 2.5% per year for buildings from 2023 onwards). For landlords, the property transfer tax thus reduces the tax burden over the long term.
Commercial use: for commercially used properties, the property transfer tax is deductible as a business expense and increases the depreciable building value.
The history of the property transfer tax
The history of the property transfer tax in Germany is a history of steady increases:
- 1983A uniform nationwide rate of 2.0%
- 1997Increase to 3.5% nationwide
- 2006Federalism reform: the federal states may set the rate themselves
- 2007–2019A wave of increases: almost all federal states raise the rate step by step. Berlin goes to 6.0% in 2014, Brandenburg and Nordrhein-Westfalen to 6.5% in 2015
- 2023Sachsen raises its rate from 3.5% to 5.5%, the second-to-last state to do so
- 2024Thüringen becomes the first and only federal state to lower its rate, from 6.5% to 5.0%
- 2025Bremen raises its rate from 5.0% to 5.5%
The hope that tax competition between the federal states would lead to falling rates has not materialised. On the contrary: only Bayern has held to the minimum rate of 3.5% since 1997. For buyers, this means the property transfer tax is a fixed, non-negotiable block of costs that you should factor into your financing plan from the very start.
Questions & answers
Frequently asked questions about property transfer tax
The property transfer tax (Grunderwerbsteuer) is a one-off tax due when you buy a property or plot of land in Germany. It is levied on the purchase price and goes to the tax office of the federal state. The rates currently range from 3.5% (Bayern) to 6.5% (Brandenburg, Nordrhein-Westfalen, Saarland, Schleswig-Holstein). The property transfer tax is usually the single largest item among the closing costs.
The rates vary by federal state: Bayern 3.5%; Baden-Württemberg/Niedersachsen/Rheinland-Pfalz/Sachsen-Anhalt/Thüringen 5.0%; Bremen/Hamburg/Sachsen 5.5%; Berlin/Hessen/Mecklenburg-Vorpommern 6.0%; Brandenburg/Nordrhein-Westfalen/Saarland/Schleswig-Holstein 6.5%. Use the interactive map of Germany above to see your rate instantly.
Legally, buyer and seller are joint and several debtors, meaning both are liable. In practice, the purchase contract almost always stipulates that the buyer pays the property transfer tax. The seller is only secondarily liable if the buyer fails to pay.
After the purchase contract is notarized, the notary (Notar) reports the purchase to the tax office. The tax office sends a property transfer tax assessment, usually within 4–8 weeks. From receipt of the assessment, you have 1 month to pay. Only after payment do you receive the clearance certificate (Unbedenklichkeitsbescheinigung), which is required to register the change of ownership in the land register (Grundbuch).
Yes, there are several legal ways: (1) itemise fixtures separately in the purchase contract (a kitchen, awning, sauna etc. are not taxable); (2) for a new build, conclude the land purchase and the construction contract separately; (3) deduct the maintenance reserve when buying a condominium; (4) use state subsidy programmes (Hessengeld, the Thüringen allowance); (5) negotiate the purchase price, since every euro less also lowers the tax.
Exempt from property transfer tax are: a purchase price below €2,500 (the de minimis threshold), transfers between spouses or registered civil partners, transfers in a direct line (parents ↔ children, grandparents ↔ grandchildren), inheritances and gifts (though inheritance or gift tax may apply), and division on divorce. Transfers between siblings, however, are not exempt.
There is currently no nationwide allowance. The 2025 coalition agreement provides for the federal states to be allowed to introduce an allowance for first-time buyers of up to €250,000 per person, but a federal law to that effect is still pending. Already in force: Hessen has the “Hessengeld” (€10,000 per buyer + €5,000 per child), and Thüringen has a €25,000 allowance for first-time buyers.
The clearance certificate (Unbedenklichkeitsbescheinigung) is a document from the tax office confirming that the property transfer tax has been paid. Without it, the land registry cannot record the change of ownership. It is therefore a mandatory prerequisite for becoming the legal owner.
The property transfer tax (Grunderwerbsteuer) is a one-off charge at purchase, calculated on the purchase price (3.5–6.5%). The property tax (Grundsteuer) is an annual recurring tax that every property owner pays to the municipality (typically €200–1,500/year). The property tax can be passed on to tenants in a rental; the property transfer tax cannot.
For an owner-occupied property: no, the property transfer tax is not deductible. For investors and landlords: yes, the property transfer tax counts as an incidental acquisition cost and is written off via depreciation (AfA, Absetzung für Abnutzung) over the useful life (typically 2% p.a. over 50 years).
Since the 2006 federalism reform, the federal states have been allowed to set the property transfer tax rate themselves. Before that, a uniform federal rate of 3.5% applied. The states use the property transfer tax as an important source of revenue, and almost all have raised the rate since. Only Bayern has stayed at the original rate of 3.5%.
Yes, in certain cases: if the purchase contract is reversed within 2 years (§ 16 GrEStG), the property transfer tax already paid can be refunded. A pro-rata refund can also be claimed if the purchase price is reduced afterwards (e.g. due to defects).
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