German cities expand hotel bed tax to over a quarter of major municipalities

More than a quarter of Germany’s 200 largest cities now levy a municipal bed tax on hotel stays, according to a study by the Federal Association of Taxpayers. The number of cities charging the surcharge rose from 42 to 59 within a year, adding capitals such as Kiel, Mainz, Saarbrücken and Stuttgart to the list.

Tax rates differ widely. Several cities apply a fixed fee per night, while others use a percentage of the room price. The highest percentage rates – 7.5 % – are charged in Flensburg, Dortmund, Berlin and Potsdam, with Bonn and Schwerin at 7 % and Dresden at 6 %. Flat fees range from €3 to €4 per guest per night in places like Karlsruhe, Heidelberg and Offenburg.

The tax is not earmarked for any specific purpose and goes into each municipality’s general budget. After the Federal Constitutional Court ruled in 2022 that taxing business trips is permissible, many cities removed previous exemptions, leaving only minors, school trips and medically necessary stays exempt. Bavaria remains the only state where municipalities are prohibited from imposing a bed tax, though Munich is seeking a legal change.

Critics argue the tax adds administrative burdens for hotels and raises overall accommodation costs, potentially driving travelers to nearby cities without the levy.