Current for 2026•As of: July 2026

Trade Tax Calculator by assessment rate.

Calculate your German trade tax with your municipality’s assessment rate.

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0 EUR500,000 EUR
200 %600 %

Important to know:

  • Sole proprietorships: €24,500 allowance
  • Corporations: no allowance
  • Tax base rate: uniform 3.5%
  • Crediting against income tax: up to 4.0× the tax base amount

Effective trade tax

365.93 EUR

0.73% of profit

Calculation

Trade income50,000.00 EUR
- Tax-free allowance- 24,500.00 EUR
Trade income (rounded)25,500.00 EUR
× tax base rate (3.5%)892.50 EUR
× assessment rate (441%)3,935.93 EUR

Crediting against income tax

Trade tax3,935.93 EUR
- Crediting (max. 4.0 × base amount)- 3,570.00 EUR
Remaining trade tax365.93 EUR

The crediting is applied automatically in your income tax return.

Key figures

Assessment rate

441%

Tax base amount

892.50 EUR

Trade tax of profit

7.87%

Effective after crediting

0.73%

Notes:

  • The €24,500 allowance applies to sole proprietorships and partnerships
  • The crediting against income tax is 4.0 times the tax base amount
  • Full relief only applies if sufficient assessed income tax is attributable to the trade income (relief cap, § 35 (1) sentence 2 EStG) — the credit is not guaranteed and never results in a refund
  • The minimum assessment rate is 200%. Lower rates are automatically raised.

Important note

These calculations are for non-binding information only and do not replace professional tax advice. All information without guarantee. Learn more

Sources & calculation basis

Our calculations are based on the following official sources (as of: July 2026):

Related guides

Becoming Self-EmployedTax for the Self-Employed

Trade tax in Germany

How the municipal tax works and is calculated

Trade tax (Gewerbesteuer) is a municipal tax levied on trade income. Unlike income tax, which is regulated uniformly across Germany, trade tax varies considerably depending on the company’s location – because each municipality sets its own assessment rate (Hebesatz).

Steps for calculating trade tax

1. Determine the trade income
Profit from the business ± additions and reductions - tax-free allowance (€24,500 for sole proprietorships)
2. Calculate the tax base amount
Trade income × 3.5% (uniform tax base rate nationwide)
3. Determine the trade tax
Tax base amount × the municipality’s assessment rate (varies widely)

Trade tax calculation example

How to calculate your trade tax step by step

Example: sole proprietor in Berlin (assessment rate 410%)

Example: sole proprietor in Berlin (assessment rate 410%)
ItemAmount
Profit from the business€75,000.00
Tax-free allowance (sole proprietor)− €24,500.00
Trade income€50,500.00
Tax base amount (3.5%)€1,767.50
Trade tax (assessment rate 410%)€7,246.75

The assessment rate - decisive for your tax

The assessment rate is the multiplier applied to the tax base amount. It varies widely across Germany:

  • Statutory minimum: 200%
  • Typical major cities: 400% - 500%
  • Highest assessment rates: Oberhausen, Mülheim a.d. Ruhr (550%)
  • Low assessment rates: Monheim (285%), Grünwald (240%), Eschborn (280%)

Key factors for trade tax

These aspects affect your tax burden

  1. Crediting against income tax: Sole proprietors and partners in partnerships can credit 4.0 times the tax base amount against their income tax. With an assessment rate of 400% or less, the trade tax is usually fully offset by the income tax reduction – provided that sufficient assessed income tax is attributable to the trade income (relief cap, § 35 (1) sentence 2 EStG); the credit never results in a refund.
  2. Tax-free allowance by legal form: The €24,500 tax-free allowance only applies to sole proprietorships and partnerships. Corporations (GmbH, UG, AG) have no allowance - here trade tax is due from the first euro of profit.
  3. Choice of location as a tax-saving model: The choice of business location has a considerable impact on the trade tax burden. Comparing municipalities can pay off, especially with high profits.
  4. Consider the total burden: For complete tax planning you should consider trade tax and income tax together. Use our income tax calculator to work out your total tax burden.

Tip: calculate the total tax burden

For complete tax planning you should consider both types of tax together. Use our income tax calculator to work out your total tax burden.

Frequently asked questions about trade tax

Key facts about trade tax at a glance

Trade tax is calculated in three steps: 1. Determine the trade income (profit ± additions/reductions - tax-free allowance). 2. Calculate the tax base amount (trade income × 3.5%). 3. Calculate the trade tax (tax base amount × the municipality’s assessment rate).

Yes, sole proprietorships and partnerships have a tax-free allowance of €24,500. Corporations (GmbH, UG, AG) have no allowance - here trade tax is due from the first euro of profit.

The assessment rate is a multiplier that each municipality sets itself. It is multiplied by the tax base amount. The statutory minimum assessment rate is 200%. Most major cities have assessment rates between 400% and 500%.

Yes, natural persons (sole proprietors, partners in partnerships) can credit 4.0 times the tax base amount against their income tax. With an assessment rate of 400% or less, the trade tax is thus usually fully offset – full relief requires, however, that sufficient assessed income tax is attributable to the trade income (relief cap, § 35 (1) sentence 2 EStG).

Particularly low assessment rates are found, for example, in Monheim am Rhein (285%), Grünwald near Munich (240%), Eschborn (280%) or Zossen (200%). These municipalities are popular business locations for saving trade tax.

For business

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