Inheritance and donations in Hesse: 2024 with record tax revenue!

Inheritance and donations in Hesse: 2024 with record tax revenue!

In Hesse there is a strong disparity in inheritances. In 2024, a total of 9.6 billion euros flowed into the pockets of Hessians through inheritances and donations. This represents a significant decline of 7.8 billion euros or 44.7 percent compared to the record year of 2023, when the total was a whopping 17.4 billion euros. This development can be attributed primarily to the exceptionally high donations in the previous year, which help to explain the decline. According to HNA, the amount from inheritances amounted to 6.5 billion euros, which corresponds to around two thirds of the total wealth transfers.

But while the sums of wealth transfers have fallen, the Hessian state budget has really benefited. Tax revenue from inheritance and gift taxes increased by an impressive 66.9 percent. In 2024, an impressive 1.2 billion euros flowed into the country's coffers, an increase of 489 million euros compared to the previous year. This is shown by the latest data from Statistik Hessen.

Tax revenue and its distribution

A detailed look at tax revenue shows that 75.6 percent comes from inheritances, while 24.4 percent comes from lifetime gifts. More precisely, this resulted in 922 million euros from inheritances and 298 million euros from donations. The taxable acquisitions, i.e. the amounts that are ultimately taxed, amounted to around 6.1 billion euros. The average tax rate has also increased, from 17.4 percent in 2023 to 20.2 percent in 2024.

The inheritance and gift tax statistics in Hesse are compiled on the basis of data from the inheritance tax finance offices and only include those acquisitions for which an initial assessment was made in the respective year. These statistics are not only informative, but also extremely important for planning estates and inheritances. The comprehensive statistical report shows a wide range of relevant content, based on a decentralized survey and carried out every five years, with the latest data published annually. Further information on this can be found in the Destatis report.

Outlook and reactions

Despite the decline in asset transfers, there are positive aspects for the Hessian state budget. Citizens' initiatives in the region have been calling for higher night flight fees for Frankfurt Airport for some time, which is reviving the discussion about financing public projects. The latest reports regarding inheritance and gift figures show that the Hessian economy and the tax framework can show some positive developments even in challenging times.