Tax increases in Hamburg: culture, housing and dogs affected!

Tax increases in Hamburg: culture, housing and dogs affected!

The city of Hamburg is planning a series of tax increases on January 1, 2027, which will primarily affect the culture and tourism tax, the second home tax and the dog tax. These measures are a reaction to the federal government's tax policy, which leads to significant revenue losses for states and municipalities. According to estimates, Hamburg will have around 360 million euros less in its coffers in the next five years, which increases the pressure on the city administration to act. Loud NDR The increases are a necessary step to avoid financial bottlenecks and to secure the city's ongoing operations.

The culture and tourism tax is expected to increase by around 25 percent and amount to between 20 cents and 1.20 euros per night in the future. This means that Germany's tourism will not be unduly burdened, so that negative effects on the industry should be avoided. Finance Senator Dr. Andreas Dressel emphasizes that this increase can be viewed as moderate and the income from the tax is estimated at around 10 million euros per year. In addition, the second home tax will be increased from 8 to 12 percent, which is the first increase in over 30 years. Here too, the city wants to catch up with other large cities in order to achieve a more equitable distribution of living space.

The dog tax and its effects

Another point concerns the dog tax, which will rise from 90 euros to 120 euros per year. To support dog owners who adopt a four-legged friend from an animal shelter, there is a tax exemption for the first three years. However, this decision is not approved by all parties: the Taxpayers' Association criticizes the increase and even calls for the dog tax to be abolished. The CDU animal welfare expert expresses concerns, particularly in light of the increased cost of living and the increasing burden on animal owners.

The decision to increase taxes was not made without reason. The Hamburg tax authority is already expecting revenue of over 323 million euros for the first half of 2026. Given the impending changes and challenges posed by federal tax laws, an adjustment to tax rates is essential. Finance Senator Dressel speaks of a loss of tax revenue of over 1.5 billion euros per year, which makes the need to develop new sources of income all the more urgent. The increase in the culture and tourism tax as well as the dog tax is seen as a step that should bring the city budget 13.5 million euros in additional income annually.

A colorful mix of numbers and politics

When discussing taxes in Germany, it is important to look at the entire economic landscape. In 2023, federal tax revenue was around 918 billion euros, with a tendency to soon exceed one billion. But the challenges are diverse, because the German economy is growing only slowly and the GDP is stagnating at the level of 2019. Different parties have various plans for tax policy, from the CDU/CSU, which are calling for tax relief, to the Left Party, which wants to abolish VAT on basic foodstuffs. Discussions will continue until the federal election on February 23, 2024, and the impact of the planned Hamburg tax increases will certainly remain an issue.

With these innovations, Hamburg is walking a fine line between necessary income and the threat of financial bottlenecks. The city administration wants to ensure that citizens no longer have to suffer from financial challenges and at the same time do not let the city's ambitious goals take a back seat.