Calculating property tax in Lower Saxony

Key facts at a glance

• Area–location model: Since 2025, Lower Saxony has used its own calculation model that considers not only the lot size and usable floor area, but also the location quality based on the standard land value (Bodenrichtwert).

• Four steps to the calculation: Determine the property tax value using equivalence rates, apply the location factor, calculate the property tax base amount, and then multiply it by the municipal tax rate.

• Tax rates vary widely: Depending on the municipality, the municipal tax rate (Hebesatz) ranges from roughly 400% to 900%—making comparisons particularly worthwhile before purchasing real estate.

• Reduction for residential space: The property tax assessment rate for residential living space is reduced to 70%. For listed buildings or social housing, it may be reduced by an additional 25%.

• No need to calculate it yourself: The tax office and municipality automatically issue a property tax notice. However, doing your own estimate can help you better assess ancillary costs when buying or renting out property.

Fundamentals of property tax in Lower Saxony

Property tax is an annual tax that owners of developed or undeveloped land in Lower Saxony must pay to their local municipality. Since 2025, the calculation of property tax in Lower Saxony has been based on the so-called area–location model. This approach considers both the size of the lot and usable floor area as well as the attractiveness of the location and the municipal tax rate.

As a property owner, you do not need to calculate the amount of property tax yourself. The responsible tax office and the municipal administration handle the calculation and will automatically send you a property tax notice. However, if you plan to purchase real estate, you will still need to know the expected property tax in order to estimate future ancillary costs. Calculating property tax independently can also be helpful if you rent out a property and need to determine the advance payments for operating costs.

How to calculate property tax in Lower Saxony in 4 steps

By following the four steps explained below, you can calculate property tax in Lower Saxony. To do so, you will need the following information:

• The size of your lot

• The size of the usable floor area

• The standard land value (Bodenrichtwert) of your property

• The municipality’s average land value

• The municipal property tax rate (Hebesatz)

Step 1: Determining the property base value

In the first step of calculating property tax in Lower Saxony, you determine the property tax value. To do this, you need the correct lot size and usable floor area.

The lot size in square meters is multiplied by the equivalence rate of €0.04. The usable floor area is multiplied by the corresponding equivalence rate of €0.50.

For example, if you own a 1,000-square-meter lot with a 150-square-meter residential home, the calculation would look like this:

• Lot Size × Equivalence Rate for Land: 1,000 m² × €0.04 = €40

• Usable Floor Area × Equivalence Rate for Floor Space: 150 m² × €0.50 = €75

Step 2: Applying the location factor

In the state of Lower Saxony, the location factor must also be considered when determining property tax. This step is somewhat more complex and requires you to know both the standard land value (Bodenrichtwert) of your property and the average land value of the municipality. Your local municipal administration can provide this information. To calculate the location factor, divide the standard land value of your property by the municipality’s average land value, and then raise the result to the power of 0.3. For our example, let’s assume a property in a desirable location with a standard land value of 320, while the municipality’s average land value is 200. The calculation would look like this:

• (320 ÷ 200)⁰·³ = 1.15

The result is the location factor, which is then multiplied by the property tax values calculated in the previous step:

• Property Tax Value for Land × Location Factor: - €40 × 1.15 = €46

• Property Tax Value for Usable Floor Area × Location Factor: €75 × 1.15 = €86.25

Step 3: Calculating the assessment amount

If the usable floor area is residential living space, an additional calculation step is required. This is necessary because the property tax assessment rate for residential space is reduced to 70%. For listed residential buildings and social housing, a further 25% reduction applies.

Since our example involves residential living space, you multiply the previously calculated value by 0.7:

• €86.25 × 0.7 = €60.38

Because the assessment rate for the lot area remains 100%, the value of €46 does not change. By adding both values together, you obtain the property tax base amount:

• €46 + €60.38 = €106.38

Step 4: Multiplying by the municipal rate

The final step in calculating property tax in Lower Saxony is multiplying the property tax base amount by the municipal tax rate (Hebesatz). This rate is set independently by each municipality in Lower Saxony and therefore varies considerably. To find the rate that applies to you, contact your local municipality directly or look it up online. To complete our sample property tax calculation for Lower Saxony, we perform the following step:

Property Tax Base Amount × Municipal Tax Rate in Oldenburg: €106.38 × 539% = €573.39 annual property tax

In general, the municipal tax rate tends to be higher in large cities and economically strong regions than in smaller towns or rural areas. For example, property tax in Braunschweig—with a municipal tax rate of 750%—is higher than for a comparable property in more rural municipalities with significantly lower tax rates.

Below are some examples of current municipal tax rates for Property Tax B in Lower Saxony:

• Hannover 900%

• Braunschweig 750%

• Göttingen 735%

• Langenhagen 704%

• Wolfsburg 586%

• Oldenburg 539%

• Jork (Stade) 455%

Conclusion

In principle, you can calculate property tax in Lower Saxony for your property yourself. However, this requires knowledge of the standard land value (Bodenrichtwert) for your property as well as the average land value of the municipality. If you have questions about property tax when planning a real estate purchase in Lower Saxony, we would be happy to assist you. If you are instead planning to sell a property from your portfolio, you may find our home-selling checklist helpful.