Anticipated Increase in Tax Rates Across Three Levels, Effective from 2026
In a series of announcements, Mayor Martin Burlon of Dreieich, Germany, has revealed that the city will be increasing both property and business tax rates as of January 1, 2026. This decision comes in the face of mounting financial pressures that the city is facing.
The city's financial situation is being affected by decreasing tax revenues due to federal regulations, as well as the burden of external factors, according to Mayor Burlon. He has been vocal in his criticism towards these external factors, calling for a fair distribution of burdens related to municipal tasks.
One of the external factors affecting Dreieich's finances is the increase in the district and school levy by the Offenbach district. This increase, which has retroactively affected Dreieich's finances since 2024, has significantly burdened the city's budget. In 2024, the city saw a four-point increase, followed by an additional 3.5 points in 2025.
The federal government's revenue forecast for May is another factor contributing to the communal revenue losses nationwide, with Dreieich expected to lose 0.5 million euros in 2025 and 2 million euros in 2026.
To counteract these financial burdens, Dreieich has planned cost-cutting measures for the coming months, which are usually associated with performance reductions for citizens. However, the city is also looking to generate additional revenue. The increase in the district and school levy, as well as the planned increase in the equalization rate in the communal financial equalization by the state, are expected to bring in a combined total of 4.2 million euros.
In addition, two large daycare construction projects will reduce the planned loan by 4.7 million euros, providing some relief to the city's finances.
Mayor Burlon has emphasised that the consolidation measures in Dreieich are exclusively caused by external factors. He has also called on the federal government to make a fair contribution to financing municipal tasks.
As the city moves forward with these tax rate increases, Mayor Burlon has promised to continue naming the responsible parties for the consolidation measures with his colleagues. He encourages citizens to stay informed and engaged in the city's financial decisions.
What external factors is Mayor Burlon referring to when he calls for a fair distribution of burdens related to municipal tasks? The increase in the district and school levy by the Offenbach district, as well as the federal government's revenue forecast, are some of the factors affecting Dreieich's finances and causing the need for increased business and property tax rates.
