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What Trade Tax Calculator does
Trade tax hits anyone running a business in Germany - from sole traders and partnerships to the GmbH. It is calculated in three steps: the allowance is subtracted from the trade income, the result multiplied by the base rate of 3.5 percent (giving the assessment amount), and the municipality applies its multiplier on top. Because every municipality sets its own multiplier, the same firm can pay considerably more in Munich than in a low-multiplier town.
The allowance is the first big lever. Sole traders and partnerships get a 24,500-euro allowance on trade income - corporations like the GmbH, UG or AG get none. That is exactly why the legal-form comparison matters: the calculator shows what you would pay as a sole trader, a GbR or a GmbH so you see the burden in black and white instead of guessing.
The second big lever is the multiplier. The calculator ships a database of the multipliers of over 47 German cities - from Berlin (410) through Stuttgart (420), Frankfurt (460) and Hamburg (470) to Munich (490) and above. You can pick your municipality or enter your own rate if yours is not listed. That way you see instantly how much location really matters.
For sole traders and partnerships comes the decisive offset: the credit of trade tax against income tax under Section 35 of the Income Tax Act. 4.0 times the assessment amount is credited against your income tax. In municipalities with a multiplier up to about 400 percent, this nearly fully neutralises the trade tax - above that a residual burden remains. The calculator shows this credit separately so you see the actual net burden, not just the gross total.
Add-backs under Section 8 GewStG and reductions under Section 9 GewStG can also be factored in. Part of interest, rents, leases and lease instalments is added back to profit, certain items like the property share are reduced. These corrections make the trade income differ from your commercial profit - the calculator makes that transparent instead of hiding it.
The end result is not just the trade tax in euros but also the effective rate on your income - the number you actually need when comparing locations, legal forms or investments. It all runs data-frugally without your figures leaving your device. It does not replace tax advice, but it makes trade tax comprehensible.
Features
Multiplier database for 47+ cities
From Berlin to Munich ready to go - or enter your own municipality's multiplier.
Legal-form comparison
Sole trader, GbR, OHG, KG, GmbH, UG, AG side by side - including the 24,500-euro allowance only for non-corporations.
Income tax credit under Section 35
4.0 times the assessment amount is credited - the calculator shows the true net burden, not just the gross tax.
Add-backs and reductions
Add back interest, rents and leasing under Section 8, reduce the property share under Section 9.
Effective tax rate
Not just the tax in euros but the effective rate on your income - the number for comparing locations.
Allowance handled automatically
The 24,500-euro allowance is deducted only for non-corporations - corporations do not get it.
Runs in the browser
Your figures stay on your device. No transfer, no account needed to calculate.
How it works
- 1
Enter trade income
Enter your profit from the trade - the basis for trade tax.
- 2
Choose the legal form
Sole trader, partnership or corporation - this decides on allowance and credit.
- 3
Set municipality or multiplier
Pick your city from the database or enter your own multiplier.
- 4
Add back adjustments
Optionally factor in interest, rents and leasing under Section 8 and reductions under Section 9.
- 5
Read the result and credit
You see the assessment amount, trade tax, income tax credit and effective rate at a glance.
Who needs this
Frequently asked questions
How is trade tax calculated?
The allowance is subtracted from trade income (24,500 euros for non-corporations), the result multiplied by the base rate of 3.5 percent - giving the assessment amount. The municipality applies its multiplier to that. Example: assessment amount 1,000 euros times multiplier 400 percent equals 4,000 euros trade tax.
Does a GmbH also get the allowance?
No. The 24,500-euro allowance applies only to sole traders and partnerships like the GbR, OHG or KG. Corporations - GmbH, UG, AG - pay trade tax from the first euro of trade income. That is why the legal form can shift the burden considerably.
What does the credit under Section 35 mean?
For sole traders and partnerships, 4.0 times the trade tax assessment amount is credited against income tax. In municipalities with a multiplier up to about 400 percent this nearly fully neutralises the trade tax; above that a residual burden remains. Corporations have no such credit.
Why do I pay differently in different cities?
Because every municipality sets its own multiplier. The range runs from around 250 percent in a few low-tax towns to over 500 percent in major cities. At the same trade income that means several thousand euros difference - the calculator shows the effect instantly.
Are the multipliers current?
The calculator ships a database of over 47 cities. Municipalities can change their multipliers - if in doubt, check your current rate in the assessment notice or on your municipality's website and enter it manually if needed. The tool does not replace tax advice.
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