NRW municipalities raise property tax, driving up housing costs

More than one‑third of North Rhine‑Westphalia’s 396 municipalities have raised the Grundsteuer for the 2025‑2026 fiscal year. An analysis by the Bundes der Steuerzahler shows 140 municipalities increased the tax multiplier, including Cologne, Mülheim an der Ruhr, Hagen and Neuss. The steepest jumps were recorded in Vettweiß (+377 points), Dinslaken (+350) and Bergkamen (+325), amounting to increases of over 50 % in some areas.

The higher property tax is expected to be passed on to tenants through higher rents, affecting millions of residents. Rik Steinheuer, head of the NRW chapter of the taxpayers’ association, warned that “the municipal financial crisis is real, and people on the ground are feeling it,” noting that the trend could further steepen rental costs. Only three municipalities – Borgholzhausen, Büren and Ahlen – reduced their rates.

Revenue from the Grundsteuer funds local services such as schools, kindergartens and infrastructure, making the tax hike a significant fiscal measure for the region.