Germany Trade Tax Calculator 2022
Calculate Gewerbesteuer based on business profits and municipal rates
Introduction
🎯 What
Trade tax (Gewerbesteuer) is a municipal tax on business profits in Germany.
👥 Who
Businesses, self-employed professionals, and corporations operating in Germany.
💡 Why
To estimate trade tax liability based on local municipal rates (Hebesatz).
🏢 Business Information
Typical range: 200% - 900% (varies by city)
E.g., interest, rent, royalties
📊 Tax Summary
Enter values and calculate to see results
Germany Trade Tax Information 2022
Tax Slabs Explanation
- Base trade tax rate: 3.5% (flat rate, no progressive brackets)
- Municipal multiplier (Hebesatz): Varies by city (typically 200%-900%)
- Trade tax allowance: €24,500 for sole proprietorships and partnerships
- No allowance: Corporations (GmbH, AG) pay on full profit
- Final tax: Adjusted profit × 3.5% × (Municipal multiplier / 100)
Allowances & Deductions
- Trade tax allowance (Freibetrag): €24,500 for individuals and partnerships
- No allowance for corporations (GmbH, AG)
- Add-backs: Certain expenses (interest, rent, royalties) may be added back
- Deductions: Business expenses properly documented
- Municipal multipliers vary significantly by location
Calculation Formula
Adjusted Profit = Profit + Add-backs - Deductions
Taxable Base = Adjusted Profit - Allowance
Taxable Base = Round down to €100
Base Amount = Taxable Base × 3.5%
Trade Tax = Base Amount × (Hebesatz / 100)
Examples
Example 1: Sole Proprietorship
Profit: €100,000
Allowance: €24,500
Hebesatz: 400%
Trade Tax: €10,570
Example 2: Corporation
Profit: €50,000
Allowance: €0 (no allowance)
Hebesatz: 300%
Trade Tax: €5,250
Frequently Asked Questions
Q: What is Trade Tax (Gewerbesteuer)?
A: Local business tax levied on
net profits of companies and self-employed individuals.
Q: What is the federal rate?
A: 3.5% applied to taxable business
profit.
Q: What is the municipal multiplier?
A: A percentage set by local
municipalities to increase the effective tax burden.
Q: Are there exemptions?
A: Yes, first €24,500 for sole proprietors
and partnerships is exempt.
Q: Can I adjust for loss carryforwards?
A: Yes, input the amount in
deductions to reduce taxable profit.
Q: Does trade tax affect corporate income tax?
A: Yes, trade tax is
partially deductible from corporate income tax.
Q: How do I find my municipal multiplier?
A: Check your local city or
municipality's website for the current Hebesatz.
Disclaimer: This Germany Trade Tax Calculator 2022 is for informational purposes only and Google AdSense content. Calculations are estimates based on standard assumptions and may differ from actual tax liabilities. Municipal multipliers vary significantly by location. Always consult a licensed tax advisor (Steuerberater) for exact tax calculations and compliance requirements.