Inheritance and Gift Tax Revenues Rise Sharply in Brandenburg Amid Federal Reform Debate

Brandenburg has seen a significant increase in inheritance and gift tax revenues, reaching approximately 64 million euros in 2024, the highest level in a decade. This marks a rise from around 48 million euros in the previous year and 60 million euros in 2021, with revenues between 30 and 40 million euros during 2015 to 2019. The state's Finance Ministry attributes the growth to major individual inheritances linked to the demographic bulge of baby boomers and rising real estate values in Germany. The revenues help cover the state's expenses without specific earmarking.

The inheritance tax remains a sensitive issue due to notable regional disparities in tax impacts despite federal regulations. CDU member Steeven Bretz highlighted these regional differences, underlining the complexity of adjusting inheritance tax policy. At the federal level, discussions are ongoing about reforming the inheritance tax system. CSU leader Markus Söder has proposed devolving the authority to set tax rates to individual states, but Chancellor Friedrich Merz dismissed this idea as unrealistic. Meanwhile, Green Party parliamentary leader Katharina Dröge advocates eliminating existing tax exemptions altogether.

This fiscal trend in Brandenburg comes amid broader debates on federal inheritance tax reform and potential decentralization of tax powers, reflecting tensions between maintaining national standards and addressing regional economic realities.