Frankfurt's Economic Development in Focus: Tax Revenues and Prospects

Frankfurt's Economic Development: Tax Revenues as a Stabilizer

Frankfurt am Main is not only a metropolis of finance but also a key player in the regional economic structure of Hesse. In January 2026, the city’s economic foundations – particularly tax revenues – were in focus. City Treasurer Dr. Bastian Bergerhoff reported on the current developments in business tax revenues in several sessions, which play a crucial role in municipal financial policy.

The Business Tax as an Economic Policy Instrument

The business tax is one of the most important municipal taxes in Germany and often constitutes a significant share of the budget. In Frankfurt, it is especially relevant due to the city’s strong industrial and service-sector profile. Dr. Bergerhoff noted in his presentation that tax revenues remained stable in 2025, indicating a resilient economic structure. At the same time, it became clear that changes in the financial sector and increasing digitization could have long-term effects on the business tax base. The city is therefore preparing for this change by developing flexible tax concepts and investment incentives for innovative companies.

The Tension Between Tax Revenue and Economic Promotion

A central aspect of the committee discussions was the balance between tax revenue and economic promotion. Frankfurt, on the one hand, depends on sufficient revenues to finance investments in infrastructure, education, and social services. On the other hand, businesses must be won over in the long term to ensure growth and jobs. Dr. Bergerhoff emphasized that Frankfurt has deliberately created incentives for SMEs and start-ups in recent years, for example through simplified founding conditions and tax advantages. This strategy is reflected in the stable development of business tax revenues, but the challenge is to further develop it in a changing economy.

Outlook: Digitization and International Competitiveness

The discussions in the January sessions show that Frankfurt must not only react to local but also to global economic trends. Digitization is changing the way companies operate, and thus also how they invest in cities. Frankfurt's strategy for the future aims to position the city as an innovation hub – with a focus on FinTech, Green Tech and IT services. Business tax policy will play a central role here: it must not only finance but also attract and retain companies in the long term.

Conclusion: Stability as a Starting Point for Growth

Frankfurt's economic development in January 2026 reflects a city that is consciously focusing on its strengths while anticipating future challenges. The stable business tax revenues provide room for investment, while economic policy is gaining flexibility and innovation. Frankfurt has the opportunity to establish itself as a model for other cities in Germany – provided it remains consistent in implementing its economic strategy.