District of Munich remains company -friendly: tax burden remains low!

District of Munich remains company -friendly: tax burden remains low!

In a year, which was characterized by rising trade tax rates in many parts of Upper Bavaria, the district of Munich stands out due to remarkable stability. So there was no increase in the lifting rates last year. On the contrary, the municipality of Taufkirchen has even reduced its rate from 310 percent to 250 percent. This decision underlines the request of the municipality to attract companies and strengthen the location quality, while the average trade tax rate in the Munich district is 305 percent - remarkably low compared to the Upper Bavarian average of 342 percent, such as [merkur.de] (https://www.merkur.de/lokales/muenchen-lk/landkreis-muenchen-trend-dem-Kommunen- HASTENT-FUER-FUER-FUERMEN-LEIDEN-LIEDRIG-93787303.html) reported.

The situation should not be underestimated, because while many municipalities in Upper Bavaria increased their lifting rates in 2024, only 55 of the approximately 500 municipalities authorized to act have increased, while three municipalities, including Taufkirchen, lowered the tax burden. As a result, the Munich district has positioned itself as an attractive place for companies.

lifting rates in comparison

• Highest lifting rate in the district: Kirchheim - 360%
• Lowest lifting rate: Grünwald - 240%
• average in the district of Munich: 305%
• Upper Bavarian average: 342%

taxes and income

In 2024, the municipalities in the Munich district took around 917 million euros via trade tax. That is around 60 million euros less than in the previous year. These tax revenues are essential to secure municipal finances and make necessary investments. In addition, a trade tax levy of EUR 130 million flowed to the federal and state governments, which once again illustrates the dependence of the municipalities on this tax.

Another aspect is the nationwide discussion about the automatic increase in the statutory minimum rate from the current 200 percent to 280 percent, which could increase tax burden for many companies. However, this could also result in the emigration of companies that are heard for attractive locations, as analyzed in the studies of ihk-muenchen.de) become.

The development of the lifting rates in the communities is visible on an interactive map that illustrates the regional differences in the lifting rates and enables a direct comparison. Such data is particularly interested in companies that want to find out more about future taxes and taxes at their potential location, as the municipal area statistics on [statistikportal.de] (https://www.statistikportal.de/de/karten-realsteuer-hebesaetze-der-der-der-der-der-der-der-der-der-der In summary, it can be said that, despite the political trends on tax increase, the Munich district offers its companies a relatively attractive environment. Taufkirchen and other communities rely on low lifting rates to promote economic growth and settlement of new companies - an approach that should be observed.