Real Estate Transfer Tax by German State 2026: Where You Pay the Most
Current rates at a glance
Since the 2006 federalism reform, German states have been able to set their own real estate transfer tax rate. This has led to considerable divergence:
| State | Rate |
|---|---|
| Bavaria | 3.5% |
| Baden-Württemberg | 5.0% |
| Lower Saxony | 5.0% |
| Rhineland-Palatinate | 5.0% |
| Saxony-Anhalt | 5.0% |
| Thuringia | 5.0% |
| Bremen | 5.5% |
| Hamburg | 5.5% |
| Saxony | 5.5% |
| Berlin | 6.0% |
| Hesse | 6.0% |
| Mecklenburg-Vorpommern | 6.0% |
| Brandenburg | 6.5% |
| North Rhine-Westphalia | 6.5% |
| Saarland | 6.5% |
| Schleswig-Holstein | 6.5% |
Thuringia is so far the only state to have lowered its rate, cutting it from 6.5% to 5.0% on January 1, 2024. Bremen most recently raised its rate from 5.0% to 5.5% on July 1, 2025. Hamburg and Saxony had already raised theirs on January 1, 2023.
What this means for you
On a €400,000 purchase price, the transfer tax is €14,000 in Bavaria, but €26,000 in Brandenburg, North Rhine-Westphalia, Saarland, or Schleswig-Holstein – a €12,000 difference based on the state alone. The transfer tax is also part of the purchase-related side costs you need to plan for on top of your equity, alongside notary and land registry fees and possibly broker fees – it isn't part of the bank's collateral basis, so it generally has to be paid from your own funds.
Reform debate: an exemption for first-time buyers
The idea of a nationwide exemption for first-time buyers of owner-occupied housing isn't new: back in 2023, the CDU/CSU parliamentary group in the Bundestag called for an exemption of €250,000 per adult plus €150,000 per child. The 2025 coalition agreement provides for an exemption of up to €250,000 on a first property purchase – implementation, however, has so far failed over the federalism question: the transfer tax is a state-level tax, so the federal government can only set the legal framework, and the states would need to agree.
On March 19, 2026, real estate and property-owner associations issued a joint statement calling on the federal and state governments to convene a "real estate transfer tax summit" in the short term. Among their demands: a full exemption or significant reduction for first-time buyers up to regionally different value thresholds, and a portability rule under which tax already paid would be credited against the next purchase of an owner-occupied home. Some states are also examining tiered tax rates (lower for cheaper, higher for more expensive properties), though no concrete draft legislation existed as of February 2026.
What some states already do: the Hessengeld example
While a nationwide solution is still pending, some states have taken their own approach. Since March 1, 2024, Hesse has paid first-time buyers a non-repayable grant toward the transfer tax called "Hessengeld": up to €10,000 per buyer (max. €20,000 per purchase) plus €5,000 for each minor child moving in – paid out in ten annual instalments up to the amount of tax actually paid. The requirement is a first-time purchase of an owner-occupied property in Hesse; anyone who already owns residential property (including holiday homes, rental or commercial properties, or property in other states) is excluded. Applications are submitted digitally via WIBank.