Real estate transfer tax is the largest single item among the ancillary purchase costs when buying property—and depending on the federal state, two buyers can be separated by several tens of thousands of euros. It is levied once when ownership is transferred and in 2026 ranges between 3.5 and 6.5 percent of the purchase price. Without its payment, the land registry offices will not register the new owner. We explain how high the tax is in your federal state, when it is due, and how you can legally reduce it.
What Is Real Estate Transfer Tax?
Real estate transfer tax is a one-time tax incurred when purchasing a plot of land or property. It is triggered by the notarized purchase agreement that transfers ownership of a property located in Germany. As a rule, the basis for assessment is the notarized purchase price—the tax is therefore calculated as a percentage of the amount you pay for the property.
Important for classification: Real estate transfer tax is a tax paid by the buyer. Alongside notary and land registry costs and any broker’s commission, it is one of the ancillary purchase costs that you must bear in addition to the pure purchase price. It must be strictly distinguished from taxes that may arise on the seller’s side, such as speculation tax on a sale within the ten-year period. This guide deals exclusively with the tax you bear as the purchaser.
How High Is Real Estate Transfer Tax in 2026? The Rates by Federal State
The statutory standard tax rate is 3.5 percent. This is stated in Section 11 GrEStG: “The tax amounts to 3.5 percent.” Since the federalism reform of 2006, however, the federal states have been allowed to set the rate themselves. The result is a patchwork that ranges from 3.5 to 6.5 percent in 2026.
The rates in the 16 federal states currently look as follows:
- 3.5 percent: Bavaria
- 5.0 percent: Baden-Württemberg, Lower Saxony, Rhineland-Palatinate, Saxony-Anhalt, Thuringia
- 5.5 percent: Bremen, Hamburg, Saxony
- 6.0 percent: Berlin, Hesse, Mecklenburg-Western Pomerania
- 6.5 percent: Brandenburg, North Rhine-Westphalia, Saarland, Schleswig-Holstein
Bavaria is the only federal state that has never exceeded the standard rate. At the upper end are Brandenburg, North Rhine-Westphalia, Saarland, and Schleswig-Holstein, each at 6.5 percent—almost twice as much.
Why Is Real Estate Transfer Tax Different in each federal state?
The reason for the differences is an amendment to the Basic Law. Under Art. 105 para. 2a sentence 2 GG, the federal states have “the authority to determine the tax rate for real estate transfer tax.” Since the revenue flows entirely to the federal states, most of them have increased the rate since 2006 to strengthen their budgets.
There is still movement today. Thuringia reduced its rate from 6.5 to 5.0 percent as of January 1, 2024 – the first reduction ever. Bremen, on the other hand, increased its rate from 5.0 to 5.5 percent as of July 1, 2025. Anyone buying in a border region should therefore look closely: A property a few kilometers across the state border can noticeably change the tax burden.
Calculation example: How much you pay on 400,000 euros
The impact of the rate is shown by a purchase price of 400,000 euros. Depending on the federal state, you pay the following in real estate transfer tax:
- Bavaria (3.5%): 14,000 euros
- Baden-Württemberg (5.0%): 20,000 euros
- Hamburg (5.5%): 22,000 euros
- Berlin (6.0%): 24,000 euros
- North Rhine-Westphalia (6.5%): 26,000 euros
For this purchase price, there is a difference of 12,000 euros between the least and most expensive federal state. The difference increases accordingly for more expensive properties. Important: The tax is rounded down to whole euros, but this only matters in practice for irregular purchase prices.
From the purchase contract to the land register entry: the process
The tax office becomes involved between the signing of the contract and the transfer of ownership. The process consists of five steps.
Step 1: Notarization and notification to the tax office
As soon as the purchase contract has been notarized, the notary reports the transaction ex officio to the competent tax office. As the buyer, you do not need to submit anything yourself – the notification obligation lies with the notary.
Step 2: The real estate transfer tax notice
The tax office calculates the tax and sends you a real estate transfer tax notice. It states the amount, the bank account and the payment deadline.
Step 3: Payment within the deadline
The tax is due one month after the notice is announced (§ 15 GrEStG). Transfer the amount on time; otherwise, late-payment surcharges may apply. Expect the notice to arrive several weeks after the notary appointment.
Step 4: The clearance certificate
Once the tax has been paid, the The tax office issues the so-called certificate of clearance and forwards it to the notary or the land registry office. It serves as proof that “there are no tax objections to the registration.”
Step 5: Registration in the Land Register
Only now may the land registry office register you as the new owner. Section 22 GrEStG is unequivocal: The purchaser “may only be registered in the land register once a certificate from the tax office responsible for taxation has been submitted.” Without paid real estate transfer tax, there is therefore no land register entry—and consequently no legally secure ownership either.
Who owes the real estate transfer tax—buyer or seller?
Legally, both parties to the contract owe the tax jointly. Section 13 GrEStG designates “the persons involved as contracting parties in a transaction” as tax debtors—buyers and sellers are therefore jointly and severally liable. In practice, however, almost every purchase agreement stipulates that the buyer bears the real estate transfer tax alone. That is precisely why the tax assessment notice is sent to you as the purchaser.
Joint and several liability only becomes relevant if the buyer does not pay: The tax office can then approach the seller. For the seller, however, the real estate transfer tax is not their own financial burden. As a seller, you must consider entirely different taxes—such as the speculation tax under Section 23 EStG, if you sell at a profit within ten years and have not occupied the property yourself. These seller taxes have nothing to do with the real estate transfer tax.
Can you reduce the real estate transfer tax?
The tax cannot be completely avoided in a conventional purchase. However, there are legal ways to reduce the tax base or fall entirely outside the scope of the tax:
- List movable inventory separately: A fitted kitchen, furniture, sauna, or garden shed sold with the property do not count as part of the real estate. If they are listed separately in the purchase agreement at a realistic value, the taxable amount decreases. The valuation must be reasonable; otherwise, the tax office will ask questions.
- Purchase between close relatives: Under Section 3 GrEStG, a purchase by a spouse or registered partner, as well as by relatives in the direct line—for example, from parents to children—is tax-free. Also Inheritance and gifts do not trigger real estate transfer tax.
- Observe the de minimis threshold: If the value of the acquisition remains below 2,500 euros, no tax is due. However, this tax-free allowance is irrelevant for typical real estate purchases.
By contrast, it is not possible to “finance away” the real estate transfer tax. Banks generally expect you to pay the ancillary purchase costs from your own funds. So include the tax in your budget from the outset. At least those who rent out the property can claim the real estate transfer tax for tax purposes as ancillary acquisition costs through depreciation. This is not possible for a self-occupied home.
FAQ on real estate transfer tax
How high is the real estate transfer tax in my federal state?
This depends on the location of the property, not on your place of residence. In 2026, the rates range from 3.5 percent in Bavaria to 6.5 percent in Brandenburg, North Rhine-Westphalia, Saarland and Schleswig-Holstein. You can find the complete overview further up in this guide.
When do I have to pay the real estate transfer tax?
The tax is due one month after notification of the tax assessment notice. You generally receive the notice a few weeks after the notary appointment, so there are usually several weeks to a few months between the purchase and payment.
What happens if I do not pay the real estate transfer tax?
Without payment, the tax office will not issue a clearance certificate. Without this certificate, the land registry office will not register you as the owner. Payment is therefore the key to the transfer of ownership—quite apart from late-payment surcharges for late transfers.
Can I deduct the real estate transfer tax from my taxes?
Not for a self-occupied property. If you rent out the property, the real estate transfer tax counts as acquisition costs and can be claimed proportionally through annual depreciation (AfA).
Is real estate transfer tax due when buying from my own parents?
No. Acquisitions by relatives in the direct line are exempt from real estate transfer tax under Section 3 of the Real Estate Transfer Tax Act (GrEStG). This applies between parents and children as well as between spouses and civil partners.
Conclusion: Plan for the real estate transfer tax early
Real estate transfer tax is unavoidable but predictable. The decisive factor is the rate in your federal state, which in 2026 ranges between 3.5 and 6.5 percent of the purchase price and quickly reaches five figures. Anyone who includes this amount in their own funds from the outset, Clearly itemizing the inventory sold with the property and knowing the exemptions for close relatives helps avoid unpleasant surprises. And since no land register entry is made without the tax being paid, there is no getting around settling the assessment on time.