Find the trade income
The starting point is the profit of your trade business. Additions and reductions change it only in special cases, such as high financing costs.
Trade tax calculator for Germany
Enter your profit and your municipality. The calculator shows the base amount, the trade tax (Gewerbesteuer), and how much of it a sole trader credits against income tax.
Your details
Legal form
Pick your municipality or enter its multiplier yourself.
Result
Trade tax per year
€4,970.00
- Trade income (rounded down to €100)€60,000
- Allowance− €24,500
- Base amount (3.5%)€1,242.50
- Multiplier400%
- Credit against income tax (§ 35 EStG)− €4,970.00
- Cost after the credit€0.00
- Prepayment per quarter€1,242.50
The credit is capped at the income tax on your business profit. Additions and reductions (§§ 8, 9 GewStG) are not included.
Multipliers: © Statistische Ämter des Bundes und der Länder, Deutschland, 2026, Regionaldatenbank, table 71231-03-01-5, as of 31 Dec 2024. Licence: Datenlizenz Deutschland – Namensnennung – Version 2.0. Changed: trade-tax multipliers only, municipality names without suffixes.
Your taxes, estimated from your bookkeeping
Norman estimates your taxes from receipts and invoices, for free. The trade tax return is part of the paid plans.
Start for freeHow the tax office calculates it
Deduct the allowance
The trade income is rounded down to full €100. Sole traders and partnerships then deduct €24,500, a GmbH or UG nothing.
Calculate the base amount
The rest times 3.5% is the base amount (Steuermessbetrag). The tax office sets it in the Gewerbesteuermessbescheid.
Apply the multiplier
The municipality multiplies the base amount by its multiplier (Hebesatz), at least 200%. The result is your trade tax.
Credit against income tax
Sole traders and partners: deduct 4 times the base amount from their income tax (§ 35 EStG), at most the trade tax they paid.
Multiplier up to 400%: the credit usually offsets the trade tax completely. Above that, the rest is a real cost.
Cap: The credit is at most the income tax on your trade profit. With losses or large deductions it is smaller.
GmbH and UG: get no credit. For them, trade tax comes on top of corporate income tax.
Who pays, and when?
Traders: sole traders and partnerships with a trade business, and every GmbH and UG.
Freelancers (Freiberufler): pay no trade tax, for example doctors, lawyers, architects or journalists (§ 18 EStG).
Prepayments: The municipality collects them quarterly, on 15 February, 15 May, 15 August and 15 November.
Return: Sole traders and partnerships file one when the trade income exceeds €24,500. A GmbH or UG files every year.
FAQ
How do I calculate German trade tax?
Round the profit down to full €100, deduct the €24,500 allowance as a sole trader, multiply by 3.5% and then by the municipality's multiplier. Example: €60,000 profit at a 400% multiplier gives (60,000 − 24,500) × 3.5% × 400% = €4,970.
How high is the trade tax allowance?
€24,500 a year for sole traders and partnerships. A GmbH or UG has no allowance.
Can I deduct trade tax from my income tax?
As a sole trader or partner, yes: 4 times the base amount, at most the trade tax paid (§ 35 EStG). Up to a 400% multiplier this usually offsets the trade tax completely.
What multiplier does my municipality use?
The calculator has the multipliers of all German municipalities as of 31 Dec 2024, from the statistical offices' regional database. Municipalities can change their multiplier every year; the current value is in the municipal budget or on its website.
Is trade tax a business expense?
No. Since 2008 you cannot deduct trade tax as a business expense (§ 4 (5b) EStG). Sole traders offset it through the income tax credit.
Do Kleinunternehmer pay trade tax?
Yes, if they run a trade business and their trade income exceeds the €24,500 allowance. The Kleinunternehmer rule only covers VAT.