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Freelancer Tax in Germany

Calculate your net income as a freelancer or self-employed worker in Germany for 2026.

Freelancer tax system in Germany

Self-employed workers in Germany (Freiberufler or Gewerbetreibende) pay income tax on their profit using the same progressive rates as employees, from 14% to 45%. The key difference is that Freiberufler in liberal professions (writers, consultants, engineers, doctors) are exempt from trade tax (Gewerbesteuer), while Gewerbetreibende must pay it at a rate set by their local municipality (Hebesatz). Health and pension insurance are mandatory but paid in full by the freelancer, typically 14.6% for public health plus a supplementary rate.

  • Income tax: progressive 14%–45% on taxable profit after business expenses
  • Freiberufler: no trade tax (Gewerbesteuer). Gewerbetreibende: trade tax at local Hebesatz rates
  • Social insurance: full cost borne by the freelancer (health, pension, long-term care)
  • VAT: 19% standard rate. Revenue under €22,000/year may qualify for Kleinunternehmerregelung (VAT exemption)
  • Quarterly advance tax payments (Steuervorauszahlungen) required by the Finanzamt

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