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Salary & tax · Self-employed

Trade tax calculator

For sole traders, partnerships and corporations: trade tax (Gewerbesteuer) and the relief through income tax at a glance.

Your details

Profit according to your tax balance sheet or cash-basis profit calculation (EÜR).

For example 25% of financing elements above €200,000 (§ 8 GewStG).

For example 1.2% of the assessed value (Einheitswert) of business property (§ 9 GewStG).

Hamburg: 470%. At least 200%.

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Result

Trading income (rounded down)
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Allowance
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Tax base amount
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Trade tax
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Credit against income tax (up to)
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Remaining burden after credit
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Trade tax relative to trading income
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The results are non-binding estimates for guidance only and do not replace tax, legal or investment advice. What counts are your payslip, your tax assessment (Steuerbescheid) and the terms of your contracts.

How it is calculated

Profit plus add-backs minus deductions gives the trading income (Gewerbeertrag), which is rounded down to the nearest full €100. Sole traders and partnerships deduct an allowance of €24,500.

3.5% of this gives the tax base amount (Steuermessbetrag). Multiplied by the municipal multiplier (Hebesatz), this gives the trade tax.

Individuals and partners in partnerships can credit 4.0 times the base amount against their income tax (§ 35 EStG) – at most the trade tax actually paid, and only to the extent that income tax is attributable to the business income.

  • For sole traders and partnerships, trade tax is largely offset arithmetically up to a multiplier of around 400%.
  • Corporations have no allowance and no credit; instead, they pay corporation tax (Körperschaftsteuer).

Frequently asked questions

Where can I find my municipality's multiplier?

On your city's or municipality's website, usually under taxes and charges, and in your trade tax assessment notice.

Do freelancers pay trade tax?

No. Liberal professions under § 18 EStG (freiberufliche Tätigkeit), such as doctors, lawyers or tax advisers, are not subject to trade tax. Insurance intermediaries, on the other hand, carry on a trade.

Sources

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Mahdi Barzkar

Contact and content responsibility

Mahdi Barzkar

Owner and insurance broker authorised under section 34d(1) of the German Trade Regulation Act · Register number D-H3YB-K7WLO-18.

Legal and register details (German)

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