Inheriting property
How much inheritance tax
for your property?
n inherited property is almost always the largest item in the estate - and the one with the most levers. Here I estimate the land value for you from the standard land value and plot area (§ 179 BewG) and calculate the inheritance tax under § 16 and § 19 ErbStG. The family-home exemption and rental discount are built in. For properties in Hesse you get the standard land value free of charge from the BORIS Hessen portal.
That is how much the 10 percent rental discount alone takes off the taxable base - on a rented residential property worth 1,000,000 EUR, even before the personal allowance.
§ 13d ErbStG
Honestly: You get these 100,000 EUR for free, without doing anything - the rental discount under § 13d ErbStG applies automatically to rented residential property. But it is the smallest lever. The big one you decide beforehand: if the property is owner-occupied, the family home can pass entirely tax-free (§ 13 ErbStG). If it is transferred rather than inherited, the tax base often drops even more. The valuation is only the beginning.
Property details
Gifts within 10 years are aggregated (§ 14 ErbStG). The calculation assumes that tax has already been paid on prior gifts.
Calculation result
Enter the plot area and the standard land value to estimate the property value and the German inheritance tax.
Important note: This calculator provides a rough, non-binding estimate. The actual property valuation (§§ 176 et seq. BewG), valuation discounts, special allowances, the hardship adjustment under § 19 para. 3 ErbStG and individual planning are not fully reflected. For a reliable calculation please consult a German tax adviser.
How the tax office values
Three routes to the property value
Which method applies depends on the type of property. The land value under § 179 BewG is part of each of them. That is exactly why the standard land value is the single most important figure.
§ 183 BewG
Comparative value method
Condominiums and one- or two-family houses. The value is derived from sale prices of comparable properties.
§§ 184 ff. BewG
Income value method
Rented residential and commercial property. The sustainably achievable rental income is decisive.
§§ 189 ff. BewG
Asset value method
When no comparative or income value applies. Land value plus building asset value, multiplied by an asset value factor.
Legal status 2026. This calculator reflects a simplified asset-value estimate and does not replace an official valuation.
My tip from practice
The most common expensive mistake with inherited property: heirs simply accept the land value estimated by the tax office. If it is above the real market value, you pay too much. But under § 198 BewG you may prove a lower fair market value with a qualified appraisal - that often reduces the tax base noticeably. And with the family home: children must move in without delay and live there themselves for ten years (§ 13 para. 1 no. 4c ErbStG), otherwise the exemption is forfeited retroactively. Check both before the assessment becomes final.
Florian Enders, tax adviser · § 198 BewG
Frequently asked
Property and inheritance tax
How is an inherited property valued for inheritance tax?
The tax office values real estate under the Valuation Act (§§ 176 ff. BewG). Depending on the property type, the comparative value method applies (§ 183 BewG, for example for condominiums and one- or two-family houses), the income value method (§§ 184 ff. BewG, for example for rented residential property) or the asset value method (§§ 189 ff. BewG). The land value is always determined under § 179 BewG from the standard land value (Bodenrichtwert) times the plot area. This calculator gives a simplified estimate based on land value plus an estimated building value. The official value can differ from it.
What is the Bodenrichtwert (standard land value) and where do I find it in Hesse?
The Bodenrichtwert is an official average location value per square metre of plot area. It is determined by the state valuation committees (Gutachterausschüsse) and provided free of charge in Hesse via the BORIS Hessen portal (boris.hessen.de). For inheritance tax, the standard land value that applies on the valuation date, meaning the date of death, is decisive. Other German states run their own BORIS portals with the same data.
When does an inherited family home stay tax-free?
An owner-occupied family home can pass tax-free. For the spouse, the exemption applies with no size limit (§ 13 para. 1 no. 4b ErbStG); for children, only up to 200 m² of living space (§ 13 para. 1 no. 4c ErbStG). In both cases the heir must use the home as their own residence without delay for at least ten years. If self-use is given up within that period without a compelling reason, the exemption is forfeited retroactively.
What valuation discount applies to rented residential property?
Property rented for residential purposes is assessed at only 90 % of its value, so a valuation discount of 10 % applies (§ 13d ErbStG). The condition is that the property is rented for residential use and does not belong to privileged business assets. The discount works regardless of the degree of kinship and reduces the tax base before the personal allowance is deducted.
How high is the allowance for an inherited property?
Personal allowances apply regardless of the type of asset. Spouses have 500,000 EUR, children 400,000 EUR each, grandchildren 200,000 EUR, parents in the event of inheritance 100,000 EUR, all other acquirers 20,000 EUR (§ 16 ErbStG). With real estate the allowance is often exceeded, because land and buildings form the largest block of taxable acquisitions in Germany.
Keep calculating
Beyond the property
Once the value is set, these are the three calculators I would turn to next if I were in your position.
Inheritance Tax Calculator
The general calculator for any estate: allowance, tax class and rate under § 19 ErbStG in seconds.
Open calculatorGift Tax Calculator
Transfer property during your lifetime and use the allowances afresh every ten years. See the savings potential instantly.
Open calculatorUsufruct Calculator
Transfer the property, keep the right of residence: how much the usufruct reduces the taxable value.
Open calculatorA property is never just a number.
The structuring decides.
Family home, usufruct, anticipated succession or staggered transfer: with real estate, a six-figure sum often lies between the standard case and a well-thought-out structure. Bring your figures, and I will place your case in an initial consultation so we find the path with the lowest burden together.