Inheritance Tax Calculator: German tax on inherited property
How much inheritance tax is due on an inherited house or flat in Germany? Our free calculator works out your personal allowance by relationship, checks the family-home exemption and the valuation discount for rented property, and shows the estimated tax under the German Inheritance Tax Act (ErbStG). Everything runs locally in your browser.
Last updated: July 2026
Value unknown? Estimate it with the property valuation calculator.
Tax class I, allowance €400,000
Enter the property value and your relationship to the deceased to calculate the estimated inheritance tax.
Inheritance tax on German property: the essentials
Anyone who inherits a house or flat in Germany may have to pay inheritance tax on it. How high it is depends mainly on two things: your relationship to the deceased and the value of the property. The closer the relationship, the higher the personal allowance and the lower the tax rate.
The legal basis is the German Inheritance and Gift Tax Act (ErbStG). Tax applies not to the whole estate but only to the part left after debts, costs and allowances. For owner-occupied homes in particular, generous exemptions apply on top.
Our calculator works out your allowance, checks the family-home exemption and the valuation discount for rented property, and shows the estimated tax. That gives you a quick sense of whether, and how much, the tax office takes.
Allowances by relationship
The personal allowance under § 16 ErbStG stays tax-free; only the amount above it is taxed. Allowances apply per heir and renew every ten years.
| Relationship to the deceased | Tax class | Allowance |
|---|---|---|
| Spouse / registered civil partner | I | €500,000 |
| Child / stepchild | I | €400,000 |
| Grandchild (parent deceased) | I | €400,000 |
| Grandchild (parent living) | I | €200,000 |
| Great-grandchild, parents, grandparents | I | €100,000 |
| Sibling, niece, nephew, child-in-law | II | €20,000 |
| Unrelated, unmarried partner | III | €20,000 |
Grandchildren receive 400,000 € instead of 200,000 € if the connecting child of the deceased has already died. For parents and grandparents the 100,000 € applies only on inheritance; for a lifetime gift it is 20,000 €.
Tax classes and rates
The relationship sets the tax class (I, II or III), the size of the taxable acquisition sets the rate under § 19 ErbStG. The rate applies to the entire taxable acquisition, not just the part above a threshold. A hardship adjustment prevents a narrow overshoot from causing a sudden jump.
| Taxable acquisition | Class I | Class II | Class III |
|---|---|---|---|
| up to 75,000 € | 7% | 15% | 30% |
| up to 300,000 € | 11% | 20% | 30% |
| up to 600,000 € | 15% | 25% | 30% |
| up to 6m € | 19% | 30% | 30% |
| up to 13m € | 23% | 35% | 50% |
| up to 26m € | 27% | 40% | 50% |
| over 26m € | 30% | 43% | 50% |
Inheriting the family home tax-free
The most important exemption concerns the owner-occupied family home. If the spouse inherits the jointly used property and does not move out, it stays entirely tax-free, with no value limit (§ 13 Abs. 1 Nr. 4b ErbStG).
For children (and grandchildren whose parent has already died), the exemption applies only up to 200 m² of living area. If the home is larger, the value of the excess area is taxed pro rata. For example, at 300 m² of living area, 200/300 of the value is tax-free and the rest is taxable.
The condition is always that the heir moves in without delay, usually within six months, and lives in the property for ten years. Anyone who moves out, sells or rents it within that period without a compelling reason loses the exemption retroactively. A move into a care home counts as compelling; a voluntary relocation does not.
Rented property: a 10 percent discount
If the inherited property is rented for residential use, the tax office counts only 90 percent of its value. This 10 percent valuation discount under § 13d ErbStG reduces the tax base directly. What matters is that it was rented on the day of death; the heir does not have to keep renting it.
The family-home exemption and the 10 percent discount are mutually exclusive for the same property; it is either owner-occupied or rented. If a remaining mortgage sits on a partly or fully exempt property, it is only deductible in proportion under § 10 Abs. 6 ErbStG. Our calculator handles this coupling automatically.
How is the property value determined?
For inheritance tax, what counts is the assessed value the tax office sets under the Valuation Act. Depending on the property type, the comparative-value, income or cost approach is used. Since the recent valuation updates, this assessed value is usually close to the market value.
If the official value is too high, you can prove a lower value with a qualified appraisal or a recent sale price (§ 198 BewG). For an initial estimate of the market value, our property valuation calculator helps.
Deducting debts and costs
Estate debts can be deducted from the taxable acquisition. These include the deceased's debts, above all the remaining mortgage, as well as the costs of the funeral and settling the estate.
For these estate costs there is a lump sum that can be claimed without receipts. From 2025 it was raised from 10,300 € to 15,000 €. Our calculator deducts it automatically.
Prior gifts and the 10-year rule
Gifts and inheritances from the same person are added together within ten years (§ 14 ErbStG). The personal allowance is available only once in that period. So if you received a gift shortly before the inheritance, less allowance remains for the estate.
Conversely, this can be used for tax planning: after ten years the full allowance is available again. Transferring assets early and in stages lets you pass on wealth tax-free over the years. Our calculator reduces the available allowance by your figure for prior gifts.
Examples: how much tax is due
The following examples are produced with this calculator. They show how strongly relationship and use affect the tax.
| Heir | Case | Property value | Inheritance tax |
|---|---|---|---|
| Child | inherited, not owner-occupied | €400,000 | tax-free |
| Child | inherited, not owner-occupied | €700,000 | €31,350 |
| Child | owner-occupied, 140 m² | €800,000 | tax-free |
| Sibling | inherited | €500,000 | €116,250 |
| Unrelated | inherited | €400,000 | €109,500 |
Reducing inheritance tax legally
With foresight the tax can often be reduced substantially. The owner-occupied home passes to the spouse tax-free. Early gifts use the allowances again every ten years. And anyone who inherits the family home and moves in saves through the family-home exemption.
If the tax can only be paid by selling the property, it can be deferred for up to ten years for an owner-occupied or rented residential property (§ 28 ErbStG), interest-free on inheritance. Which arrangement is worth it in your case is best clarified with a tax advisor or a lawyer specialising in inheritance law.
Note on reform: as of July 2026, the allowances and rates shown here apply unchanged. There are political proposals to change the allowances and the 10-year rule, plus a pending case before the Federal Constitutional Court. None of this has been enacted.
Frequently asked questions about inheritance tax on property
That depends on the relationship and the value of the property. First the personal allowance is deducted, for example 500,000 € for spouses or 400,000 € for children. Only the amount above it is taxed. The rate ranges from 7 to 30 percent in tax class I and from 30 to 50 percent in class III. A child who inherits a house worth 700,000 € and does not move in, for instance, pays around 31,350 € in inheritance tax.
The personal allowance under § 16 ErbStG is 500,000 € for spouses and registered civil partners, 400,000 € each for children and stepchildren, 200,000 € for grandchildren (400,000 € if the connecting child has died), 100,000 € for great-grandchildren, parents and grandparents on inheritance, and 20,000 € for all other heirs. It applies per heir and renews every ten years.
The owner-occupied family home can stay entirely tax-free. For the spouse there is no value limit if they move in themselves and stay for ten years. For children the property is tax-free up to 200 m² of living area, with the rest taxed pro rata. The personal allowance also applies: if the taxable acquisition is below it, no tax is due either.
As a child, the inherited family home stays tax-free if you move in without delay, usually within six months, and live there for ten years. However, the exemption applies only up to 200 m² of living area. If the house is larger, the value attributable to the excess area is taxed. If you move out, sell or rent it within the ten years without a compelling reason, the exemption falls away retroactively.
The tax office determines an assessed value under the Valuation Act, using the comparative-value, income or cost approach depending on the property type. Since the recent valuation updates, this value is usually close to the market value. If it is set too high, you can prove a lower value with a qualified appraisal or a recent sale price (§ 198 BewG).
For property rented for residential use, the tax office counts only 90 percent of the value. This 10 percent valuation discount under § 13d ErbStG reduces the tax base directly. What matters is that the property was rented on the day of death. The family-home exemption and this discount are mutually exclusive for the same property.
In principle yes. The deceased's debts, above all the remaining mortgage, reduce the taxable acquisition as estate debts. However, if the debt sits on a fully or partly tax-exempt property, it is only deductible in proportion under § 10 Abs. 6 ErbStG. On a fully tax-free family home, the remaining mortgage is not deductible at all.
For the costs of the funeral and settling the estate there is a lump sum that can be deducted without receipts. From 2025 it was raised from 10,300 € to 15,000 €. Higher actual costs can be claimed with evidence. Our calculator deducts the 15,000 € lump sum automatically.
Several routes are possible: the owner-occupied home passes to the spouse tax-free. Children save through the family-home exemption if they move in. And early gifts use the allowances again every ten years. Which arrangement suits you is best clarified with a tax advisor or a lawyer specialising in inheritance law.
Not necessarily. If you can only raise the tax by selling, it can be deferred for up to ten years for an owner-occupied or residential rented property (§ 28 ErbStG). On inheritance this deferral is interest-free. You then pay the tax in instalments instead of having to sell the property.
Yes. Gifts and inheritances from the same person are added together within ten years (§ 14 ErbStG). The personal allowance is available only once in that period. So if you received a gift shortly before the inheritance, less allowance remains for the estate. After the ten years, the full allowance is available again.
First there is a reporting duty: you must notify the tax office of the acquisition within three months of learning about the inheritance, even if no tax is likely due. The tax office then requests a return if needed and assesses the tax by notice. The inheritance tax only becomes due with that notice.
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