Freelancer tax in Germany
Freelancers (Freiberufler) in Germany pay income tax on profit and usually charge VAT (Umsatzsteuer). Here are the 2025/26 headline figures.
The headline figures
- Progressive income tax: 0% up to the €12,348 basic allowance (Grundfreibetrag), then 14% rising to 42% at ~€69,879, and 45% above €277,826.
- VAT (Umsatzsteuer) is 19% standard (7% reduced). You can use the Kleinunternehmer rule if turnover was under €25,000 last year and stays under €100,000.
- True Freiberufler are generally exempt from trade tax (Gewerbesteuer).
Quick tax estimate
Estimate your Germany tax below. For the full breakdown, open the dedicated Germany calculator.
Estimated total tax
€20,618
Effective rate 39.6% on €52,000 net profit
VAT (Umsatzsteuer): above the €25,000 Kleinunternehmer limit you must charge 19% VAT — ≈ €11,400 on sales minus ≈ €1,520 reclaimable on expenses ≈ €9,880 net VAT payable to the Finanzamt (separate from your income tax above).
Estimates use the official 2026 German income-tax formula (§32a EStG) plus an estimate of public health (~14.6%) and long-term-care (~3.4%) contributions up to the annual ceiling. Actual social contributions for the self-employed vary; VAT (Umsatzsteuer) is separate. Simplified estimate for planning only — not tax advice.
Germany freelancer tax — FAQ
How much tax do freelancers pay in Germany?
Income tax is progressive from 14% (above the €12,348 allowance) up to 45%. Most freelancers also charge 19% VAT unless they qualify for the small-business (Kleinunternehmer) exemption.
What is the Kleinunternehmer VAT threshold?
You can skip charging VAT if your net turnover was under €25,000 in the previous year and is not expected to exceed €100,000 this year — but you then cannot reclaim input VAT.
Figures are current headline guidance for the self-employed, verified against official sources — not tax advice. Check current rules or an accountant for your situation.