Trade Tax (Gewerbesteuer) for GmbH and UG in Germany 2026: Calculation and Deadlines

Trade tax (Gewerbesteuer) is one of the most significant taxes for companies in Germany. Every GmbH and UG (haftungsbeschränkt) is automatically liable for trade tax – on all trading income, from the first euro of profit. This article explains how trade tax is calculated, what deadlines apply, and how to manage advance payments.

What Is Gewerbesteuer (Trade Tax)?

Trade tax is a municipal tax levied on a company's trading income (Gewerbeertrag), governed by the Trade Tax Act (Gewerbesteuergesetz). It flows to the municipality where the company is registered. Each municipality sets its own multiplier (Hebesatz): Munich charges 490%, Berlin 410%, with smaller municipalities often significantly lower.

Does Trade Tax Apply to GmbH and UG?

Yes – fully and without exception. GmbH and UG are deemed to be trade businesses by virtue of their legal form, regardless of their actual activities. Crucially, unlike sole traders and partnerships, corporations receive no trade tax allowance (Freibetrag).

For comparison: sole traders and partnerships benefit from a €24,500 annual tax-free allowance. GmbH and UG have no such allowance – trade tax applies from the first euro of profit.

How to Calculate Trade Tax: Formula and Example

The calculation follows a straightforward formula:

Trade Tax = Trading Income × 3.5% (standard rate) × Hebesatz (municipal multiplier)

The standard rate (Steuermesszahl) is 3.5% nationwide. The Hebesatz typically ranges from 300% to 500% in practice. Example: Your GmbH is based in Hamburg (Hebesatz 470%) and generates €100,000 in trading income.

• Tax base amount: €100,000 × 3.5% = €3,500
• Trade tax: €3,500 × 4.70 = €16,450

Note: Unlike sole traders, GmbH and UG cannot offset trade tax against their corporation tax liability. It is a separate, additional burden that must be planned for independently.

Add-backs and Deductions (Hinzurechnungen und Kürzungen)

Trading income doesn't always equal your accounting profit. The Trade Tax Act prescribes add-backs and deductions that can adjust your taxable trading income:

• Add-backs: 25% of financing costs including interest, rent, leasing charges, and license fees
• Deductions: 1.2% of the assessed value of business-use real property (Grundbesitz-Kürzung)

These adjustments make it important to prepare the trade tax return carefully or use software that handles the calculations automatically.

Advance Payments and Deadlines 2026

Trade tax is not only paid annually. The tax office sets advance payments due quarterly:

• 15 February 2026
• 15 May 2026
• 15 August 2026
• 15 November 2026

Advance payments are based on the most recently assessed trading income. If your profits change significantly, you can request an adjustment from the tax office. The annual trade tax return for the 2025 tax year is due by 31 July 2026 (without a tax advisor). With a tax advisor, the deadline is typically extended to end of February 2027.

Filing Your Trade Tax Return

The trade tax return (form GewSt 1 A) is filed electronically via ELSTER with the competent tax office. The process:

1. Prepare your annual accounts and determine your accounting profit
2. Apply add-backs and deductions per the Trade Tax Act
3. Complete and submit form GewSt 1 A via ELSTER
4. Review the assessment notice and pay any remaining balance

With Norman, your bookkeeping and annual accounts are automated. The figures you need for the trade tax return are always available at a glance – and ELSTER submission is built right in.

Summary

Trade tax is an unavoidable cost for every GmbH and UG in Germany. Key takeaways:

• No tax-free allowance – trade tax applies from the first euro of profit
• Effective rate: 3.5% × municipal Hebesatz (typically 14–17% of profit)
• Quarterly advance payments – next due: 15 May 2026
• Annual return due 31 July 2026 via ELSTER

Further reading: Corporate Income Tax for GmbH and UG | GmbH Bookkeeping 2026