Property tax calculation in NRW explained clearly

Key facts at a glance

• Since 2025, property tax in NRW has been calculated using the federal model with the formula: Property Tax Value × Assessment Rate × Municipal Tax Rate.

• The assessment rate is 0.31 per mille for residential properties and 0.34 per mille for all other properties.

• Each municipality sets its municipal tax rate (Hebesatz) independently—some municipalities apply a differentiated tax rate for residential properties.

• Property tax is calculated annually, but it is generally payable quarterly.

What is property tax and when should you calculate property tax in NRW?

Property tax applies to all owners of land, regardless of whether it is developed or how it is used. It is paid quarterly to the responsible municipality. If you own real estate as an investment and rent it out, you may pass the property tax on to your tenants. The tax office calculates the amount of property tax for each property. You will then receive a property tax notice, which means you do not have to calculate property tax in NRW yourself.

However, doing so can be useful in the following situations:

• Before a planned land or real estate purchase in NRW

• To determine operating costs when renting out a property

• To review a tax notice

By the way, our budget calculator offers a practical tool for planning the financial aspects of a real estate purchase.

Formula for calculating property tax in NRW

Since 2025, the state of North Rhine-Westphalia has used the federal model to calculate property tax. The following formula is applied:

Property tax value × assessment rate × municipal tax rate

Below, we explain what the individual factors mean and how you can calculate or determine them.

Determine the property tax value for a property in NRW

The first step in calculating property tax in NRW is determining the property tax value. This task is handled by the responsible tax office, which will send you an official notice. The calculation takes into account the lot size, the standard land value, as well as the type and age of the building.

Applying the assessment rate

Multiply the determined property tax value by the assessment rate. It is important to note whether the property is a residential property or a property used for other purposes:

• For residential properties, the assessment rate is 0.31 per mille.

• For all other properties, the rate of 0.34 per mille applies.

Municipal tax rate

Taking the municipal tax rate into account is the final step when calculating property tax in NRW. Each municipality sets its own property tax rate independently. You can request it directly from your municipality or research it online. Some municipalities use the option of applying a differentiated tax rate. In that case, residential properties are subject to a different rate than other types of property.

Finally, you multiply your previous calculation result by the municipal tax rate to determine the amount of property tax due. This amount applies per year, but it is usually payable in quarterly installments.

Calculate property tax for Dortmund, Cologne, and more: Examples of municipal tax rates in NRW for 2026

• Dortmund: uniform tax rate of 800%

• Cologne: uniform tax rate of 550%

• Düsseldorf: uniform tax rate of 374%

• Duisburg: uniform tax rate of 1,169%

Note: Municipal tax rates may change at short notice. Some cities in NRW have adjusted their tax rates for 2026 or have returned from differentiated rates to a uniform rate—in part following a ruling by the Gelsenkirchen Administrative Court in December 2025. We therefore recommend confirming the current tax rate directly with your municipality.

Example of calculating property tax in NRW

In our sample property tax calculator for NRW, we assume that you own a property in Cologne. It is a residential property for which the property tax value has been set by the tax office at €250,000. In Cologne, a uniform municipal tax rate of 550% applies. This results in the following calculation:

Property Tax Value × Assessment Rate × Municipal Tax Rate: €250,000 × 0.00031 × 550% = €426.25

The impact the municipal tax rate has on the amount of property tax becomes clear if we calculate the tax for a comparable property in Düsseldorf (uniform tax rate 374%):

Property Tax Value × Assessment Rate × Municipal Tax Rate: €250,000 × 0.00031 × 374% = €289.85

Conclusion on calculating property tax in NRW

Since 2025, property tax in NRW has been calculated using the federal model, which can lead to significant differences compared with previous property tax notices. To calculate property tax in NRW yourself, you need the property tax value and the municipal tax rate applied in your municipality. Whether you want to estimate operating costs for a rental property or calculate property tax before purchasing a new property, we are happy to assist you with any real estate-related questions.