When the first lockdowns confined people to their homes in 2020, many people went out and bought themselves a dog. In the second pandemic year of 2021, this trend seems to have continued, as municipalities in Germany took in record revenues from dog taxes. 

Dog tax revenue in Germany rises to 401 million euros in 2021

Forced (or perhaps finally allowed) to work from home, and with fewer leisure opportunities taking them out of the house, many individuals and families in Germany turned to pets during the coronavirus pandemic, both as a source of entertainment and - in the case of dogs especially - a reason to get out of the house. 

The first year of the pandemic saw demand for puppies soar - overall, 20 percent more dogs were bought in 2020 than in the previous year, according to the German Canine Association - bringing with it record revenues for tax offices, which took in 331 million euros in dog taxes. 

In 2021, a year also characterised by lockdowns and home working, that trend appears to have continued, with the Federal Statistical Office reporting this week that a new record was set: municipalities took in a whopping 401 million euros in dog taxes in 2021. Back in 2011, revenue from the tax stood at 275 million euros.

Dog taxes encourage people to take pet ownership seriously

The fact that owners have to pay taxes on their pets is something that often catches expats in Germany by surprise. The Hundesteuer is designed to financially support local authorities - for instance, cleaning streets of dog mess and providing waste bins - while also encouraging potential owners to see a dog as a serious commitment. 

For this reason, some municipalities charge higher taxes for people who own multiple dogs, while in other areas the rate depends on the dog breed. Each district determines its own fee structure - and so rising revenue from dog taxes isn’t an exact indicator of rising dog ownership. 

There are concerns that many people who adopted during lockdown will be unable to keep up with the demands of caring for a dog now that employees are being encouraged to return to the office. Recently, the German Animal Welfare Association reported that rescue shelters were becoming overwhelmed with pets being handed in, by far the majority of them young dogs.