Munich district remains business-friendly: tax burden remains low!

Munich district remains business-friendly: tax burden remains low!

In a year that was characterized by rising trade tax rates in many parts of Upper Bavaria, the Munich district stands out for its remarkable stability. There was no increase in the assessment rates last year. On the contrary, the municipality of Taufkirchen has even reduced its assessment rate from 310 percent to 250 percent. This decision underlines the municipality's desire to attract companies and strengthen the quality of the location, while the average trade tax rate in the Munich district is 305 percent - remarkably low compared to the Upper Bavarian average of 342 percent [merkur.de].

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

Comparison of lifting rates

• Höchster Hebesatz im Landkreis: Kirchheim – 360%
• Niedrigster Hebesatz: Grünwald – 240%
• Durchschnitt im Landkreis München: 305%
• Oberbayerischer Durchschnitt: 342%

Taxes and revenue

In 2024, the municipalities in the Munich district collected around 917 million euros from trade tax. That is around 60 million euros less than the year before. This tax revenue is essential to secure municipal finances and make necessary investments. In addition, a trade tax levy of 130 million euros went to the federal and state governments, which once again illustrates the dependence of municipalities on this tax.

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

The development of the assessment rates in the municipalities is visible on an interactive map, which illustrates the regional differences in the assessment rates and enables a direct comparison. Such data is particularly of interest to companies that would like to find out about future taxes and duties at their potential location, as the municipal area statistics on statisticsportal.de shows.

In summary, despite the political trends towards tax increases, the Munich district offers its companies a relatively attractive environment. Taufkirchen and other communities rely on low assessment rates in order to promote economic growth and the establishment of new businesses - an approach that should certainly be taken into account.