Property tax: the path to Karlsruhe is now clear

On January 22, 2026, the Federal Fiscal Court (BFH) published the full reasons for its rulings on the new property tax. This means that a crucial formal hurdle has been overcome: A constitutional complaint is only admissible with the complete BFH rulings.

This is precisely the step that the affected owners have already announced. They want to take the dispute over the new property tax to the Federal Constitutional Court – supported by the Taxpayers’ Association andthe homeowners’ association Haus & Grund, among others.

For owners, this is an important signal: the matter is not over.

Why the publication of the reasons for judgment is so important

The decisions of the BFH from December 10, 2025 have so far only been available as abridged versions.
As long as the fully substantiated judgments are not available, a constitutional complaint is inadmissible.

There is a simple reason for this:
A constitutional complaint must deal specifically with the grounds for the decision of the court of last instance. Without this reasoning, there is no formal basis.

👉 This requirement is now met.

The period of one month within which the constitutional complaint must be lodged with the Federal Constitutional Court begins with the formal notification of the grounds for the judgment.

What the BFH decided – and what it didn’t

The BFH considers the so-called federal model of property tax to be constitutional.
It sees neither formal nor material violations of the Basic Law and has therefore not made a referral to Karlsruhe itself.

Important for the classification:

• The BFH does not make final decisions on constitutional issues

• He only examines whether he himself is convinced of an unconstitutionality

• This assessment does not bind the Federal Constitutional Court

This is precisely why the next step is now logical.

The next step: constitutional complaint

The plaintiffs have already publicly stated that they intend to take their case to Karlsruhe. They are supported by organizations that have long been critical of the new property tax, in particular:

• the Taxpayers’ Association

• the owners’ association House & Property

The dispute in Karlsruhe is no longer about individual valuation details, but about the fundamental constitutionality of the new property tax regulations.

With the reasons for the BFH ruling now published, the formal requirements for a property tax constitutional complaint have been met.

The Federal Constitutional Court is decisive – not the fiscal jurisdiction

Irrespective of the BFH rulings, the following applies:
The question of whether the new property tax is compatible with the German Basic Law is not decided by the fiscal courts, but solely by the Federal Constitutional Court.

Only Karlsruhe has the final say. It therefore remains to be seen whether the new property tax will actually stand or whether it will have to be amended again.

How the new property tax is structured in principle, which procedures are currently underway and what owners should pay attention to now is explained in the large property tax guide from PepperPapers.

What does this mean for you as an owner?

As long as the Federal Constitutional Court has not ruled, the legal situation remains open. Anyone affected by the new property tax should therefore ensure that their own assessments do not become final.

This is because only open notices can later benefit from a positive decision from Karlsruhe.

This also expressly applies now – following the BFH rulings.

Sample objection to new property tax assessments

Anyone who currently receives a new property tax assessment notice should check whether an objection makes sense. PepperPapers provides a sample objection to the municipality’s property tax assessment available.

The model objection helps to keep your own decision open as long as the constitutional clarification is still pending.

Conclusion: The last word has not yet been spoken

The publication of the reasons for the BFH ruling is not the end, but the starting point for the constitutional review of the new property tax.

👉 The path to Karlsruhe is now clear.
👉 The last word has not yet been spoken.

For owners, this means staying informed, checking notices and securing rights.

Source:

Federal Fiscal Court, judgments of 12.11.2025
Ref. II R 25/24, II R 31/24, II R 3/25 (reasons for judgment published on January 22, 2026)