Corporate Tax Estimate (GmbH)
For a German GmbH, your approximate combined tax rate is 28–32% depending on municipality.
- Körperschaftsteuer: 15% + 5.5% Soli = 15.825%
- Gewerbesteuer in Düsseldorf (Hebesatz 440): 15.4%
- Combined effective rate (Düsseldorf): ~28.8%
- In Frankfurt (Hebesatz 460): ~31.2%
- In Munich (Hebesatz 490): ~32.2%
Personal Income Tax Estimate
German personal income tax is progressive. Key reference points for 2026:
- €50,000 gross income → approx. €14,000–17,000 tax (28–34% effective)
- €100,000 gross income → approx. €35,000–40,000 tax (35–40% effective)
- €200,000 gross income → approx. €85,000–90,000 tax (42–45% effective)
- Plus 5.5% Soli on top for higher earners
For Precise Calculations
Tax calculations depend on individual circumstances — deductions, class, church membership, allowances, and cross-border elements. For a precise calculation, our Steuerberater provides a detailed analysis in consultation.
Common questions.
Is this calculator legally binding?
No. The estimates shown are illustrative based on 2026 statutory rates and typical deduction assumptions. Your actual tax liability depends on your specific situation. Only a formal assessment (Steuerbescheid) from the Finanzamt is binding.
Can I reduce my German corporate tax below 28%?
Legally, holding structures, §8b KStG exemptions, and certain deductible expenses can reduce the effective rate. Tax evasion is heavily penalised — we advise on legitimate planning only.
What are the three taxes that make up the total German corporate tax burden?
Körperschaftsteuer (KSt) at 15%, Solidaritätszuschlag (Soli) at 5.5% of KSt (= 0.825%), and Gewerbesteuer (GewSt) at 3.5% × local Hebesatz (typically 400–490% = 14–17.15%). Combined effective rate: 28–33% depending on the municipality.
What is the effective income tax rate for a German GmbH managing director earning €150,000?
At €150,000 gross salary: approximately 42% income tax + 5.5% Soli on tax + around 7.5% employee Sozialversicherung (on capped bases) — effective total deduction approximately 45–47%. After-tax take-home: approximately €80,000–85,000. A Steuerberater can model dividend vs. salary mix to optimise the effective rate.
How is VAT (Umsatzsteuer) calculated in Germany?
Standard VAT rate: 19%. Reduced rate: 7% (food, books, public transport, hotel accommodation). VAT is calculated on the net sales price: a €100 net sale carries €19 VAT, totalling €119. B2B sales within the EU use the reverse charge mechanism — no German VAT is charged if the buyer is VAT-registered in their home EU country.
What is the Körperschaftsteuer Vorauszahlung and when is it due?
KSt advance payments are made quarterly on 10 March, 10 June, 10 September, and 10 December. The Finanzamt sets advance amounts based on the prior year's assessment. If profits change materially, you can apply (Antrag) to adjust advance payments up or down. Underpayment results in late payment interest at 1.8% per year.
Does the German tax calculator include trade tax (Gewerbesteuer)?
Our calculator applies the Hebesatz of the municipality you select. You can compare the tax burden across German cities — the difference between Munich (490% Hebesatz, 17.15% GewSt) and Eschborn (280% Hebesatz, 9.80% GewSt) can amount to thousands of euros annually for profitable businesses.
Can a GmbH pay its managing director in dividends instead of salary to reduce tax?
Yes, to a degree. Dividends from a GmbH are taxed at 25% Abgeltungsteuer (or Teileinkünfteverfahren at marginal rates). Salaries are deductible for the GmbH (reducing corporate tax) but are taxed at marginal income tax rates on the recipient. The optimal mix depends on the effective GmbH tax rate vs. the managing director's personal tax rate — our Steuerberater models both scenarios.
Get a precise tax calculation.
Our Steuerberater provides a detailed analysis of your specific German tax position.
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