Trade Tax Calculator
Calculate the trade tax for your business. With assessment rate, exemption and credit against income tax. Quick, accurate calculation with all 2026.
Typical: 200% - 900%. Average approx. 400%.
Trade tax
€10,570.00
Effective burden
€0.00
Detailed calculation
Effective trade tax rate
Based on profit
0.00%
Allowance of {amount} applies only to sole proprietorships and partnerships. The income tax credit under §35 EStG is max. 4 times the tax assessment. Without guarantee.
Note: These calculations are for informational purposes only and do not replace professional tax or financial advice. All information without guarantee.
FAQ
Frequently Asked Questions
How is trade tax calculated?
Trade tax is calculated by multiplying the trade income by the base rate of 3.5% and then by the municipality's levy rate. Sole proprietors receive a tax-free allowance of 24,500 euros.
Who has to pay trade tax?
All commercial businesses are subject to trade tax. Freelancers (Freiberufler) and agricultural businesses are exempt. Sole proprietors benefit from a 24,500 euro allowance.
Are the 2026 German tax values current?
Yes — all tax rates, allowances and contribution ceilings reflect 2026: basic allowance €12,348, top tax rate 42 % from €69,879, Soli exemption €20,350. Source: German Federal Ministry of Finance (BMF) and gesetze-im-internet.de.
Guide
Quick Answer
The trade tax calculator computes the trade tax for businesses based on trade income and the municipal multiplier.
What is the Trade Tax Calculator?
The trade tax calculator computes the trade tax for businesses based on trade income and the municipal multiplier.
How does the Trade Tax Calculator work?
From the profit, add-backs and deductions are applied. The tax measurement figure of 3.5% is applied to trade income and the result is multiplied by the municipal rate. Sole traders and partnerships receive an allowance.
Key Data and Facts
Tax measurement figure: 3.5%. Allowance for sole traders/partnerships: 24,500 euros. Minimum multiplier: 200%. Average multiplier in Germany: approx. 435%.
Step-by-Step Guide
How to calculate trade tax (Gewerbesteuer) step by step: 1. Determine the trade income: start with the taxable profit (profit from the commercial business). Add the additions (e.g. 25 % of the financing portions of interest, rents and lease instalments above the 200,000 EUR allowance) and subtract the reductions (e.g. 1.2 % of the assessed value of your own land). 2. Deduct the allowance: sole traders and partnerships receive a 24,500 EUR allowance. Corporations (GmbH, AG) have no allowance. 3. Calculate the tax base amount: trade income x 3.5 % (tax assessment rate). 4. Apply the multiplier: tax base amount x the municipality's multiplier (in %). 5. Trade tax credit: sole traders can credit 4 times the tax base amount against their income tax. Example: a sole trader with 80,000 EUR trade income in München (multiplier 490 %). Trade income: 80,000 EUR. Allowance: 24,500 EUR. Taxable trade income: 55,500 EUR (rounded down to a full 100: 55,500 EUR). Tax base amount: 55,500 x 3.5 % = 1,942.50 EUR. Trade tax: 1,942.50 x 490 % = 9,518.25 EUR. Income-tax credit (4 times): 1,942.50 x 4 = 7,770 EUR. Effective burden after the credit: approx. 1,748 EUR.
Calculation Example
Sole proprietor, trade income 80.000 EUR, München (assessment rate 490%). After allowance (24.500 EUR): 55.500 EUR. Tax base amount: 1.942,50 EUR. Trade tax: 9.518,25 EUR. After income tax credit (7.770 EUR): effective burden approx. 1.748 EUR.
Sources · E-E-A-T
Official sources
Calculations are based on applicable German laws and official data:
- Einkommensteuergesetz (EStG) — gesetze-im-internet.de
- Bundesministerium der Finanzen (BMF)
- Statistisches Bundesamt (Destatis)
Full methodology at Methodology.
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