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Germany self-employed net income calculator 2026

The calculator computes net income for German self-employed individuals (Selbstständige / Freiberufler): it deducts health insurance (KV — Krankenversicherung), long-term care insurance (PV — Pflegeversicherung) and optionally pension insurance (RV — Rentenversicherung), income tax under §32a EStG with the §35 trade-tax credit for Gewerbetreibende, the solidarity surcharge (Solidaritätszuschlag), and optionally church tax (Kirchensteuer) and trade tax (Gewerbesteuer) from annual profit. Liberal professions (Freiberufler, §18 EStG) are exempt from Gewerbesteuer; traders and commercial businesses (Gewerbetreibende, §15 EStG) must supply a municipal Hebesatz multiplier. Sources and verification status are shown with the result.

Net / year€32,114.00from €50,000.00 gross
Annual profit (Gewinn)€50,000.00
Income tax (Einkommensteuer)-€7,036.00
Solidarity surcharge (Solidaritätszuschlag)-€0.00
Church tax (Kirchensteuer)-€0.00
Net income€32,114.00

Effective deduction rate 35.8 % · of which income tax 14.1 %

Dataset last reviewed 2026-07-17 · tax year 2026 · 119 documented values⚠️ Informational estimate, not tax advice. Payroll software may differ in edge cases. Verify with a professional.

How this is calculated

  1. The starting point is annual profit (Gewinn) — revenues minus all deductible business expenses (Betriebsausgaben) and depreciation (AfA, §§4–5 EStG). The user enters this figure directly; Freiberufler (liberal professions) compute it under §18 EStG, Gewerbetreibende (commercial traders) under §15 EStG.
  2. Social insurance is paid entirely by the self-employed at the full total rate (no employer share): health insurance (KV) at 14.6% general or 14.0% reduced plus the individual Zusatzbeitrag, assessed on a minimum basis of €1,318.33/month up to a maximum of €5,812.50/month; long-term care (PV) at 4.2% (childless, age 23+) down to 2.6% (five or more qualifying children under 25) on up to €5,812.50/month; optional statutory pension insurance (RV).
  3. Gewerbetreibende (§15 EStG) owe Gewerbesteuer (trade tax): taxable profit minus the personal Freibetrag (allowance) of €24,500, multiplied by the Steuermesszahl of 3.5% and then by the municipal Hebesatz. Freiberufler (§18 EStG) are fully exempt from Gewerbesteuer.
  4. Taxable income (zvE) equals profit minus SV contributions deductible as Sonderausgaben under §10 EStG; the self-employed have no entitlement to the Arbeitnehmer-Pauschbetrag (€1,230) or Sonderausgaben-Pauschbetrag (€36). Income tax is then computed on zvE using the five-zone §32a EStG formula.
  5. The §35 EStG trade-tax credit reduces income tax by 4 times the Steuermessbetrag, capped at the actual Gewerbesteuer paid — making the net Gewerbesteuer burden zero at any Hebesatz up to 400%. Net income equals profit minus social insurance, income tax (after §35 credit), solidarity surcharge, and any Kirchensteuer and Gewerbesteuer.

FAQ

What is the difference between a Freiberufler and a Gewerbetreibender?

Freiberufler (liberal professionals, §18 EStG) include doctors, lawyers, engineers, artists and journalists. They are exempt from Gewerbesteuer and do not need to register a trade. Gewerbetreibende (commercial traders, §15 EStG) run a business and owe Gewerbesteuer. In borderline cases, the Finanzamt (tax office) determines the classification.

Why is Gewerbesteuer often a zero net cost for sole traders?

§35 EStG allows sole traders to credit 4 times the Steuermessbetrag against their income tax. Since the Steuermessbetrag is 3.5% of taxable profit, the credit amounts to 14% — exactly matching the Gewerbesteuer at a Hebesatz of 400%. At any Hebesatz up to 400% the §35 credit fully cancels the trade tax; a net burden only arises above 400%.

What is the minimum health insurance contribution for the self-employed?

Voluntarily GKV-insured self-employed pay on a minimum assessment basis of €1,318.33 per month — one third of the 2026 Bezugsgröße of €3,955, under §240 SGB V — even if actual income is lower. At the general rate including the average Zusatzbeitrag, the minimum monthly KV contribution in 2026 is approximately €230.71.

Can I deduct health insurance contributions from my taxable income?

Yes. Self-employed individuals can deduct GKV contributions (or qualifying PKV premiums for basic coverage, Basisabsicherung) as Sonderausgaben under §10 Abs. 1 Nr. 3 EStG. The portion that finances Krankengeld (sickness benefit, 0.6% of the general tariff rate) is not deductible.

Do self-employed people have to pay into the statutory pension system?

It depends on the profession. Certain groups are compulsorily insured under §2 SGB VI, including tradespeople, teachers and certain carers. Others may join voluntarily or arrange private provision instead. Contributions to a Rürup-Rente (Basisrente) contract are deductible as Sonderausgaben under §10 Abs. 3 EStG up to the statutory annual ceiling.

Sources and verification

Dataset last reviewed 2026-07-17 · tax year 2026 · 119 documented values

Rates and thresholds use official primary sources where available, reputable secondary sources when primary access is unavailable, and clearly labelled derived formulas. Each value retains its verification status.

12 sources

⚠️ Informational estimate, not tax advice. Payroll software may differ in edge cases. Verify with a professional.

Germany tax guides

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