Property Tax: The Federal Fiscal Court (BFH) Will Rule on Hamburg and Hesse on December 10, 2026

The next property tax rulings are coming soon! On November 11, 2026, the Federal Fiscal Court (BFH) in Munich heard two more test cases challenging the new property tax. This time, the property tax models of Hamburg and Hesse are under scrutiny.

The date for the rulings has now been set: The verdicts will be announced on December 10, 2026, starting at 9 a.m.

This could have significant implications for property owners in both states.

What was the outcome of the property tax hearings?

On November 11, 2026, the Second Senate of the Federal Finance Court heard two cases:

• Hesse: II R 12/25
• Hamburg: II R 15/25

Both cases concern the question of whether the respective state property tax laws are consistent with the Basic Law.

The Federal Fiscal Court (BFH) did not announce a ruling on constitutionality on the day of the hearing.

Instead, it set the date for the announcement for December 10, 2026.

You can find the official announcement on the Federal Fiscal Court’s website: Announcement dates regarding property tax in Hamburg and Hesse.

Property Tax in Hesse: The Area-Factor Model in Court

In Hesse, property tax is calculated using the so-called area-factor model.

In particular, the lot area, the building area, and a location factor play a role here.

The location factor is intended to account for differences in property locations.

In the test case II R 12/25, the Federal Fiscal Court is examining whether the Hessian Property Tax Act is constitutional.

Property Tax in Hamburg: The Residential Area Model Is Also Under Review

Hamburg uses its own area-based residential area model.

Factors taken into account here include, among other things, land area, building area, and the classification of the residential area.

Unlike value-based models, the individual market value of the property is not a direct factor.

Whether this calculation system meets constitutional requirements is the subject of Case II R 15/25.

Several constitutional challenges to the property tax have already been filed in Karlsruhe

The dispute over the new property tax has long since extended beyond the cases in Hamburg and Hesse.

Constitutional complaints challenging the federal model and the Baden-Württemberg state model are already pending before the Federal Constitutional Court.

The officially known case numbers include:

• 1 BvR 551/26 and 1 BvR 472/26 – Federal model
• 1 BvR 1977/26 and 1 BvR 2005/26 – Baden-Württemberg

As a result, various property tax models are now also being reviewed by the constitutional courts.

The Federal Finance Court publishes an official overview of the ongoing proceedings on its special property tax webpage.

What does this mean for your property tax appeal?

If you have challenged your property tax and your appeal, objection, or court proceeding is still pending, the current model cases may be relevant to you.

You can cite relevant pending cases and, subject to the applicable legal requirements, request that your own proceeding be stayed until a court decision is rendered.

Important: Such a request does not automatically result in your case being stayed. Nor does it waive your obligation to pay.

PepperPapers keeps its property tax templates up to date

At PepperPapers, we continuously monitor property tax precedent cases and update our legal documents accordingly.

If you’d like to cite current model cases and constitutional complaints, you’ll find the appropriate template here:

Property Tax Test Cases – Proceedings Suspended

This allows you to identify the relevant proceedings and request that your own proceedings be suspended.

Our other property tax legal documents at PepperPapers are also being updated to reflect new developments.

Templates that have already been used remain valid.

Conclusion: Things are set to get exciting again on December 10

Following the decisions made so far regarding the federal model and Baden-Württemberg’s property tax law, the models from Hamburg and Hesse are now facing their next major decision.

On December 10, 2026, the Federal Fiscal Court will announce its rulings.

Whether the two state models will remain in place or whether further constitutional issues will arise remains to be seen.

And even after a ruling by the Federal Fiscal Court, an appeal to the Federal Constitutional Court may still be an option.

The dispute over the new property tax continues.