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EXPLAINED: What is Germany’s lucrative ‘dog tax’ and how much is the fee?

Last year Germany collected a record high amount of dog tax, called 'Hundesteuer' from pet owners. But why does the fee still exist in Germany and how much is it?

Published: 5 October 2023 16:46 CEST
Man and dog in Frankfurt am Main
A man and his dog sit on a bench in Frankfurt am Main. Photo: picture alliance/dpa | Frank Rumpenhorst

In 2022, German municipalities collected about €414 million from the Hundesteuer (dog tax) – more than ever before, according to figures released on Thursday from Germany’s Statistical Office. 

The figure has spiked by 44 percent compared to a decade ago when Germany’s dog tax brought in €288 million.

Clearly the German tax authorities are reaping a handsome profit from the popularity of man’s best friend. So how much exactly does it cost you to have a Hund and what happens if you fail to fork over the annual fee?

READ ALSO: ‘A life without a dog is a mistake’: Germany’s passion for pooches

Why is there a dog tax in the first place?

Many foreigners are surprised to learn that dog owners in Germany have to pay a special tax.

The fee differs from state to state and is usually collected directly from Hundebesitzer, or dog owners. 

Although most jurisdictions have gotten rid of their dog taxes decades ago, Germany has stubbornly refused to do so. 

There are a number of justifications for the dog tax, from keeping dog numbers low(er) to paying for cleaning up their waste. 

It’s also to make people consider whether they want to and can support a dog long-term. 

READ ALSO: Prostitution, dogs and loneliness: A look at Germany’s weirdest taxes

While each state sets their own fee, individual districts determine how high the tax is, and how exactly it is structured. In many places, the amount to be paid also depends on the number of dogs in the household and the breed of dog.

In Berlin, for example, the first dog costs €120 per year with each additional dog costing €180 per year. 

In Düsseldorf, the tax for one dog in the household is €96, which rises to €150 for two.

The only way to get around the dog tax is to adopt a rescue dog, where you won’t be liable for the tax for the first year.

There are also suggestions that smaller dogs can be classified as rodents and therefore be tax exempt, although we’d advise against telling the taxman you were taking your tax-exempt rat for a walk until you have further confirmation.

A dog in Germany.

Germany has collected a record amount of dog tax. Photo: picture alliance/dpa | Oliver Dietze

What happens if I don’t pay the dog tax?

Anyone who does not pay the dog tax when it’s assessed – or does not register their dog at all – is considered to be committing an administrative offence. This is punishable by a fine of up to €10,000 on top of an additional payment of the outstanding tax.

The responsible public order office (Ordnungsamt) regularly carries out random checks to see whether dogs in the municipality are wearing a dog tax tag – the sign that the four-legged friends are properly registered.

Failure to pay the tax isn’t taken lightly. In a highly publicised case in 2019, a purebred pug was seized from its owners – who didn’t pay the dog tax, among other debts – before the pup was sold by the city of Ahlen to a police officer on eBay.

READ ALSO: Dog tax delinquency leads to lawsuit in town near Münster

What is the situation with dog tax in other European countries?

Of the other European countries, only Austria, Switzerland and Luxembourg charge dog tax. In the Netherlands, individual municipalities have a special levy for private dog ownership. 

Otherwise, dog taxes have been abolished in many parts of Europe, e.g. in England, France, Denmark and Italy.

How is dog tax calculated?

How much dog tax costs varies from federal state to federal state and municipality to municipality: there is neither a prescribed minimum nor a maximum rate.

The easiest way to find out how much dog tax you have to pay for your four-legged friend is to ask the responsible public order office in your municipality or the city council directly. 

Many municipalities also publish the necessary information on their own websites. There you can also find out where you have to register your dog or re-register it after moving.

Still there’s a general dog tax for every state:

Baden-Württemberg: €108 

Bavaria: €100

Berlin: €120

Brandenburg: €108

Bremen: €150 

Hamburg: €90 

Hesse: €180

Mecklenburg-Western Pomerania: €108 

Lower Saxony: €150 

North Rhine-Westphalia: €96

Rhineland-Palatinate: €186

Saarland: €120 

Saxony: €108 

Saxony-Anhalt: €96

Schleswig-Holstein: €126 

Thuringia: €108

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TAXES

EXPLAINED: How do you close down a freelance business in Germany?

Leaving the country? Got a steady job offer you can’t say no to? Winding down your self-employment activities in Germany still requires taking a few bureaucratic steps.

Published: 15 May 2024 09:07 CEST
Updated: 15 May 2024 10:57 CEST
EXPLAINED: How do you close down a freelance business in Germany?

Striking out on your own as self-employed is one of the scariest – and potentially most rewarding things – you can do. In Germany, it also comes with its own set of rules around tax and social insurance.

But there are times when – for whatever reason – it may be time to move on.

Whether it’s because you have an exciting new opportunity or things haven’t quite worked out the way you hoped due to economic pressures – winding down self-employment the right way is crucial to avoid gaps in your health and social insurance coverage in Germany.

The steps you have to take are also a bit different depending on if you are new self-employed (Freiberufler) or have a trade licence (Gewerbe) – with some steps not being necessary for new self-employed.

Trade licences are automatically cancelled if the licenced person dies or the company ceases to have financial assets.

Resigning the trade licence or declaring it dormant

New self-employed people like writers or speakers don’t need to go through this step, as they don’t need a trade licence.

Those who have a trade licence will need to contact their competent local authority and resign it, or declare it dormant (withdrawing the licence). If you’re only winding down temporarily, declaring your trade licence dormant instead of de-registering completely may save you a few headaches later.

You may have to do this in person at your local trade office – or Gewerbeamt – depending on whether your local authority allows online de-registration or not. You’ll need to bring your official ID, trade licence, confirmation of registration and possibly an extract from the trade register. Fees are dependent on your local authority and can range from being free to €25.

You can declare the date you intend to resign the licence – which can be in the future. To ensure no gaps in your social insurance protections, including health insurance, set this date for the day before whatever comes next. For example, if you’re starting a new job on January 1st set the date for your trade licence to expire as December 31st.

The trade office will typically notify your local tax office, so you won’t need to do this yourself.

Notifying your tax office

If you’ve had to resign your trade licence, you can skip this step as your trade office will do it for you. If you’re a Freiberufler without a trade licence you need to resign, you’ll have to notify your local Finanzamt, or tax office, yourself.

Luckily, this is a pretty easy step.

First, you need to decide whether you’re ceasing operations completely or wanting to continue them part-time. If you’re ceasing completely, you’ll end up surrendering your self-employed tax number.

You don’t have to do this though. If you think you may still carry on some self-employed business as a side gig, you can inform the tax office that you intend to do so and keep your number.

At that point, the tax office should treat you as a Kleinunternehmer – or a small business making less than €22,000 a year. Having this status means that you will not need to pre-pay taxes or charge VAT on your invoices for freelance side projects.

If you derive any income from your side gig in the future though, you’ll still have to file a tax return.

READ ALSO: Can I have a freelance side gig as an employee in Germany?

Notifying your health insurance

While different private plans in Germany may have different notification requirements, if you have public health insurance in Germany, you should notify them that you’re winding up your self-employed business. Specifically, advise them exactly what date you’re wrapping up.

Again, this should be right before you start your new job or leave the country, to ensure no gaps in your coverage.

If ending your self-employment in Germany, take care to ensure that there’s no gaps in your health insurance coverage, by giving the right date for when you’re ceasing activity. You don’t want to be caught without coverage. Photo by Stephen Andrews on Unsplash

If you are in an artistic profession and thus pay pension, health, and nursing insurance through the Artist Social Insurance Fund (KSK), you should also advise them as well. If you’re leaving self-employment completely, you can typically give notice to KSK as to when it’s ending.

If you’re not, and intend to still make money freelancing as a side gig, they should know this as well. In this event, you’ll no longer pay health or care insurance through KSK, as this is covered through your main job.

You may need to continue to pay pension contributions through KSK based on the amount of money you still make from self-employed activities — depending on how much of them you continue.

KSK: How creative freelancers can pay less for German health insurance

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