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July 9, 2026

Real Estate Transfer Tax by German State 2026: Where You Pay the Most

Summary: Germany's real estate transfer tax (Grunderwerbsteuer) ranges in 2026 from 3.5% (Bavaria) to 6.5% (Brandenburg, North Rhine-Westphalia, Saarland, Schleswig-Holstein) – on a €400,000 property, that's a difference of up to €12,000. A nationwide relief for first-time buyers is planned in the 2025 coalition agreement but has not been implemented yet. Some states, like Hesse, already offer direct support of their own.

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:

StateRate
Bavaria3.5%
Baden-Württemberg5.0%
Lower Saxony5.0%
Rhineland-Palatinate5.0%
Saxony-Anhalt5.0%
Thuringia5.0%
Bremen5.5%
Hamburg5.5%
Saxony5.5%
Berlin6.0%
Hesse6.0%
Mecklenburg-Vorpommern6.0%
Brandenburg6.5%
North Rhine-Westphalia6.5%
Saarland6.5%
Schleswig-Holstein6.5%

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.

This article is for general information only and does not constitute individual tax or legal advice. Tax rates and subsidy programs can change; the official information from the respective state finance ministries or WIBank is authoritative. Not covered here: possible exemptions (e.g. transfers between spouses or direct relatives under § 3 GrEStG) or other purchase-related costs such as notary and land registry fees.
Sources: German Bundestag – Exemptions for real estate transfer tax on home purchases, Haufe – Real estate transfer tax: states collect record sums, Hesse Ministry of Finance – Hessengeld