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Germany Trade Tax 2024

Calculate Gewerbesteuer for your business type and municipality

Introduction

🎯 What

Municipal tax (Gewerbesteuer) levied on business profits.

👥 Who

Commercial businesses (Gewerbebetriebe). Freelancers are largely exempt.

💡 Why

Funds local municipalities. Rates vary by city (Hebesatz).

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🏢 Business Details

Avg ~360-490%. (Berlin 410%, Munich 490%)

📊 Profit Assessment

💵 Liability

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Gewerbesteuer Rules 2024

Tax Slabs Explanation

  • Trade tax has no progressive brackets
  • Calculated as flat 3.5% of taxable income, multiplied by municipal Hebesatz
  • Tax-free allowance reduces liability for small businesses

Allowances & Deductions

  • Tax-free allowance (€24,500) for sole proprietorships & partnerships
  • Optional adjustments: previous losses, exemptions
  • Municipal multiplier can be adjusted manually for estimation
  • Corporations do not receive tax-free allowance

Calculation Model

  • Adjusted Profit: Profit + Addbacks - Deductions.
  • Allowance: €24,500 (Only for Individuals/Partnerships).
  • Base Value (Steuermessbetrag): 3.5% of Taxable Income.
  • Final Tax: Base Value × Hebesatz (Multiplier).

Examples

Example 1: Sole Proprietorship

Profit: €100,000 | Multiplier: 400%

Allowance: €24,500

Trade Tax: €10,830

Example 2: Corporation

Profit: €200,000 | Multiplier: 350%

Allowance: €0

Trade Tax: €24,500

FAQs

Q: Are all businesses subject to trade tax?
A: Yes, but tax-free allowance applies to small businesses.

Q: Who is exempt?
A: Freelancers (Freiberufler) like doctors, lawyers, artists.

Q: What is the Hebesatz?
A: It is the municipal multiplier set by the city, usually 200–900%.

Q: Can previous losses reduce trade tax?
A: Yes, they reduce taxable trade income.

Q: Do corporations get the tax-free allowance?
A: No, only partnerships and sole proprietorships.

Q: Is it deductible?
A: Sole proprietors can offset a large portion against income tax (Einkommensteuer).

Q: Minimum rate?
A: Municipalities must set at least 200%. No upper limit.

Disclaimer: This Germany Trade Tax Calculator 2024 is for informational and Google AdSense content purposes only. Estimates may differ from actual tax liabilities. Consult your local tax office (Finanzamt) or a licensed tax professional (Steuerberater) for exact calculations.