Trade Tax Calculator
Calculate your German trade tax with your municipality’s assessment rate.
As of September 2026Basis: GewStG, § 35 EStGCalculated in your browser – your inputs are not transmitted and are kept on this device only if you choose
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As a in with a multiplier of %.
Pre-filled with the weighted average multiplier of all municipalities, as of 2024: 409%. Search for your municipality or enter your multiplier. Source: Statistical Offices of the Federation and the Länder, municipal multipliers 2024 (Data licence Germany – attribution 2.0).
Additions & reductionsAdditions €0.00 · Reductions €0.00
e.g. 25% of financing costs above €200,000
e.g. 1.2% of the assessed value for own real estate
Effective trade tax
€80.33
€80.33€3,650.33 trade tax – after the credit against income tax, €80.33 remains effectively (0.16% of profit).
- Trade tax
- €3,650.33
- Credit against income tax
- − €3,570.00
- Effective trade tax
- €80.33
Multiplier compared
RZ-26 · headon.pro
What you can do
Allowance of €24,500.00 for sole proprietorships and partnerships
Credit against income tax
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.
Income tax on the profit
Minimum multiplier 200%: lower multipliers are raised automatically. From the 2027 assessment period it is 280% (Sec. 16 (4) GewStG, Federal Law Gazette 2026 I No. 197).
How this was calculated
- Business profit
- €50,000.00
- Trade income
- €50,000.00
- Allowance
- − €24,500.00
- Trade income (rounded)
- €25,500.00
- × base rate 3.5% = tax base amount
- €892.50
- × multiplier 409% = trade tax
- €3,650.33
- 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
- The crediting is applied automatically in your income tax return.
Basis: §§ 7–11, 16 GewStG (allowance, base rate, multiplier), § 35 EStG (credit).
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
- 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 (as of 2024):Inden (700%); among large cities Oberhausen and Mülheim an der Ruhr (580% each)
- Low assessment rates (as of 2024):Grünwald (240%), Monheim am Rhein (250%), Zossen (270%)
Key factors for trade tax
These aspects affect your tax burden
- 1Crediting against income taxSole 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.
- 2Tax-free allowance by legal formThe €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.
- 3Choice of location as a tax-saving modelThe choice of business location has a considerable impact on the trade tax burden. Comparing municipalities can pay off, especially with high profits.
- 4Consider the total burdenFor complete tax planning you should consider trade tax and income 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
How is trade tax calculated?
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).
Is there a tax-free allowance for trade tax?
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.
What is the assessment rate (Hebesatz) for trade tax?
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% – from the 2027 assessment period it rises to 280% (Sec. 16 (4) GewStG, Federal Law Gazette 2026 I No. 197). Most major cities have assessment rates between 400% and 500%.
Can I credit trade tax against income tax?
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).
Which cities have low trade tax assessment rates?
Particularly low assessment rates are found, for example, in Grünwald near Munich (240%), Monheim am Rhein (250%) or Zossen (270%) – as of 2024 (Statistical Offices of the Federation and the Länder). These municipalities are popular business locations for saving trade tax.