German Corporate Tax
Total tax burden of a German GmbH 2026: 15% KSt + Soli + trade tax on the profit — plus 25% withholding tax on the distribution to shareholders.
GmbH profit
Trade tax Hebesatz
Germany-wide average 2026: ~405%. Munich 490%, Berlin 410%, Hamburg 470%, rural municipalities sometimes below 300%.
Distribution
Share of after-corporate-tax profit distributed to shareholders. 0% = full retention.
- Total corporate tax burden
- €29,825
- Körperschaftsteuer (15%)
- €15,000
- Solidarity surcharge (5.5% of KSt)
- €825
- Trade tax (Gewerbesteuer)
- €14,000
- Profit after corporate taxes
- €70,175
- Net dividend to shareholder
- €51,666
- Effective total burden
- 48.33 %
Effective rate (company): 29.83 %
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Breakdown
| Item | Amount |
|---|---|
| Annual profit | €100,000 |
| Corporate income tax | − €15,000 |
| Solidarity surcharge | − €825 |
| Trade tax | − €14,000 |
| Total company-level tax | − €29,825 |
| Profit after corporate taxes | €70,175 |
| Gross distribution | €70,175 |
| Abgeltungsteuer (withholding) | − €17,544 |
| Soli on withholding | − €965 |
| Net to shareholder | €51,666 |
| Retained | €0 |
| Total tax (corporate + shareholder level) | €48,334 |
Note: Calculation for a GmbH headquartered in Germany (2026). Corporate income tax 15% per §23 Abs. 1 KStG, solidarity surcharge 5.5% on KSt, trade tax (Gewerbesteuer) with a base rate (Messzahl) of 3.5% per §11 Abs. 2 GewStG. Unlike sole proprietors, a GmbH does NOT receive the €24,500 trade-tax allowance. The distribution is taxed with 25% withholding (Abgeltungsteuer) plus solidarity surcharge; church tax and the partial-income method (Teileinkünfteverfahren) are not modelled here.
Background
German Corporate Tax 2026: How Much Tax a GmbH Really Pays
11 Min.