German Trade Tax Calculator

Calculate your company’s trade tax in just two easy steps.

1. Determine the local “Hebesatz” in your municipality by searching below:

2. Enter your corporate profits and “Hebesatz” here:

Frequently asked questions

Trade tax is a crucial source of revenue for German municipalities. The rate at which they assess trade income varies depending on where the company operates, and this has an impact not only financially but also in terms of location considerations too!

Click here if you want to use our corporate tax calculator to estimate the total tax obligations of your GmbH, UG, or AG.

“Gewerbesteuer” – Trade Tax Rate

Irrespective of their legal form, all commercial business operations in Germany are liable to trade tax (Gewerbesteuer). The trade tax rate is set by local authorities which means it can vary from one municipality to the next. The rules for determining the taxable income (business profits plus certain statutory additions and allowances) are the same throughout Germany. Moreover, the trade tax rate is the same rate for all businesses within one municipality. The minimum trade tax rate must be at least seven percent. There is no statutory ceiling of the trade tax rate, but the German average trade tax rate is slightly above 14 percent. As a rule, the trade tax rate tends to be higher in urban locations than in rural areas. The solidarity surcharge is not levied on trade tax.

How is the trade tax calculated in Germany?

In Germany, the trade tax is a combination of a uniform tax rate (3.5%) and a municipal tax rate (“Hebesatz”), depending on where the business is located. In the year 2021 the Hebesatz ranges from 200 to 600. Use the Table above to find the “Hebesatz” applicable to your business.

Example Trade Tax calculation for Berlin:
   (base tax) x (Hebesatz)
         3.5% x 410 (Hebesatz of Berlin)
Trade Tax for Berlin = 14.35%

Model calculation:

A GmbH with an annual taxable income of EUR 1,000,000 is based in city A. City A has stipulated a municipal “Hebesatz” of 400 percent. The tax base amount for the GmbH is 3.5 percent of its annual taxable earnings or EUR 35,000. The EUR 35,000 is multiplied by the municipal multiplier of 400 percent, resulting in a total trade tax amount for the GmbH of EUR 140,000.

Want to find out more? Check our guide on trade tax in Germany.

Data sources:

• Hebesätze: Statistische Ämter des Bundes und der Länder für 2021, Stand 06.2022
• Calculation: GewStG