German Corporate Tax + Solidarity Surcharge + TradeTax Calculator
Our calculator estimates a corporation’s German tax burden by combining corporate income tax (15%), the solidarity surcharge (5.5% of corporate tax), and trade tax using the selected municipality’s multiplier (Hebesatz). For simplicity, it starts from the unadjusted HGB (German GAAP) annual net profit and does not apply tax add-backs/deductions, loss offsets, or special rules.
Need a precise, case-specific calculation? As tax advisors, we’re happy to prepare a detailed computation for your company.
Contact usGerman Corporate Tax Calculator
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Corporate Income Tax (15%)
Solidarity (5.5% of CIT)
Trade Tax
Total tax
How German Corporate Taxes Are Calculated
This quick overview explains how corporate income tax (Körperschaftsteuer), the solidarity surcharge, and trade tax (Gewerbesteuer) are determined for a corporation, starting from the HGB annual net profit (Jahresüberschuss).
1) From HGB profit to the tax base
Begin with the HGB net profit and reconcile to the tax base by applying tax rules (measure-of-accounts principle with exceptions):
- Add-backs: non-deductible expenses (e.g., a portion of business meals, penalties, corporate & trade tax themselves), different tax depreciation, provisions adjustments, etc.
- Deductions: tax-exempt income (e.g., dividends typically 95% exempt under §8b KStG), write-ups, and loss carrybacks/forwards subject to minimum taxation.
The result is the taxable income for corporate income tax and the starting point for trade tax.
2) Corporate income tax (Körperschaftsteuer)
Flat rate of 15% on taxable income.
Formula: KSt = 0.15 × taxable income
3) Solidarity surcharge (Solidaritätszuschlag)
5.5% of the corporate income tax (not of the income itself).
Formula: Soli = 0.055 × KSt (effective ≈ 0.825% of taxable income)
4) Trade tax (Gewerbesteuer)
- Start from the commercial profit and apply add-backs (§8 GewStG) and deductions (§9 GewStG) to arrive at the Gewerbeertrag (after loss carryforward and rounding).
- Compute the assessment amount: 3.5% of the Gewerbeertrag.
- Apply the municipality’s multiplier (Hebesatz): Trade tax = 3.5% × (Hebesatz/100) × Gewerbeertrag.
Important: Trade tax is not deductible for corporate income tax purposes (since 2008).
Rule of thumb for the effective rate
Effective total ≈ 15% (KSt) + 0.825% (Soli) + 3.5% × (Hebesatz/100). For example, at a 400% multiplier: 15% + 0.825% + 14% ≈ 29.825%.
Note: This is a simplified overview and cannot replace a case-specific calculation. As tax advisors, we are happy to prepare a detailed computation for your company, including all relevant add-backs, deductions, loss utilization, and special rules.
Frequently asked Questions about the calculation of German Corporate Income Tax, Solidarity Surcharge and Trade Tax:
ℹ️ Click a question to reveal the answer:
What does the German Corporate Tax & Trade Tax Calculator do?
It estimates a corporation’s tax burden based on the unadjusted HGB (German GAAP) annual net profit:
• Corporate income tax (Körperschaftsteuer) at 15%,
• Solidarity surcharge at 5.5% of the corporate tax, and
• Trade tax (Gewerbesteuer) at 3.5% × municipal multiplier (Hebesatz).
For simplicity, add-backs/deductions, loss offsets, and special regimes are not applied.
Which profit figure should I enter?
Enter the HGB annual net profit (Jahresüberschuss) before any tax-specific adjustments. The tool does not yet reflect add-backs (e.g., financing portions) or deductions under German tax rules—those are part of a detailed computation.
How is the trade tax (Gewerbesteuer) calculated here?
The calculator uses the standard formula: Trade tax = 3.5% × (Hebesatz / 100) × profit (in this simplified version, profit ≈ HGB profit). The Hebesatz is the municipality’s multiplier (e.g., 400% ⇒ effective 14%).
My municipality isn’t found—what can I do?
Type at least 3 letters and press Calculate to get suggestions. Try alternative spellings for umlauts (e.g., Koeln for Köln, Muenchen for München), remove hyphens, or use shorter stems.
Are add-backs, deductions, and losses included?
No. To keep it simple, the calculator does not apply add-backs (§8 GewStG), deductions (§9 GewStG), or loss carrybacks/forwards (minimum taxation rules). These can materially change the final burden and require a full tax reconciliation.
Is trade tax deductible for corporate income tax purposes?
No. Since 2008, trade tax is not deductible when determining the corporate tax base. The solidarity surcharge is calculated only on the corporate income tax.
Why might my results differ from the official assessment?
Official assessments reflect detailed adjustments (add-backs/deductions), loss utilization, participation exemptions, group taxation (Organschaft), rounding, and local specifics. Our tool provides indicative values to show order of magnitude.
Is my input data stored or sent to a server?
No. The calculation runs in your browser. We do not store or transmit your inputs. For a tailored engagement, please share figures with us directly via a secure channel. Contact us.
Which year do the municipal multipliers (Hebesätze) refer to?
The embedded dataset refers to the stated year in the calculator (e.g., 2024). Municipal multipliers can change—if you need another year, we can update the data or run a case-specific calculation. Get in touch.
Can you prepare a detailed tax computation for my company?
Absolutely. We’ll reconcile HGB to tax, apply all add-backs/deductions, review losses and special rules, and compute KSt, Soli, and GewSt precisely for your municipality. Request a consultation.