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. All 2026 rates come from official primary sources.
| Annual profit (Gewinn) | €50,000.00 |
| Income tax (Einkommensteuer) | -€7,036.00 |
| Solidarity surcharge (Solidaritätszuschlag) | -€0.00 |
| Church tax (Kirchensteuer) | -€0.00 |
| Health insurance — self-employed (Krankenversicherung) | -€8,750.00 |
| Long-term care insurance — self-employed (Pflegeversicherung) | -€2,100.00 |
| Pension insurance — self-employed (Rentenversicherung) | -€0.00 |
| Net income | €32,114.00 |
Effective deduction rate 35.8 % · of which income tax 14.1 %
How this is calculated
- 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.
- 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).
- 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.
- 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.
- 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.
Official sources
Data last verified 2026-07-17 · tax year 2026 · 119 sourced values
Every rate, threshold and formula is read from a versioned dataset of official primary sources — no numbers are hardcoded. Values without a published 2026 primary source are flagged, never guessed.
12 sources
- Bundesministerium der Justiz (BMJ) / juris — EStG § 32a — Einkommensteuertarif (ab Veranlagungszeitraum 2026)
- BMJ — EStG § 9a Satz 1 Nr. 1a — Arbeitnehmer-Pauschbetrag
- BMJ — EStG § 10c — Sonderausgaben-Pauschbetrag (single)
- Bundesfinanzministerium (BMF) — BMF Monatsberichte 2026/02 — Kinderfreibetrag 2026 €3,414 per parent: 'Der steuerliche Kinderfreibetrag wird für das Jahr 2026 um 78 Euro auf 3.414 Euro pro Elternteil angehoben.' (increased by €78 from 2025 value of €3,336)
- BMJ — EStG § 32 — BEA-Freibetrag (Betreuungs-/Erziehungs-/Ausbildungsbedarf) per parent
- Bundesministerium der Justiz (BMJ) / juris — SolZG 1995 § 4 Abs. 1 — Solidaritätszuschlag rate: 5.5% of income tax (Bemessungsgrundlage): 'Der Solidaritätszuschlag beträgt 5,5 Prozent der Bemessungsgrundlage.' Confirmed via WebFetch 2026-07-17.
- lohn-info.de — SolZ Nullzone (Freigrenze) for single filers: €20,350 of Lohnsteuer/ESt annually; employee.md fragment vs. selfemployed.md fragment (which incorrectly states €40,700 for single — that figure is the splitting limit). §3 SolZG. See synthesisNotes CONFLICT-1.
- lohnsteuer-kompakt.de — SolZ Nullzone for jointly assessed (Zusammenveranlagung / StKl III equivalent): €40,700 = 2 × single Freigrenze
- Kirchensteuer wirkt (church/state aggregator) — Kirchensteuer Bayern (BY): 8% of income tax
- Deutsche Rentenversicherung (DRV) — Beitragsbemessungsgrenze KV/PV 2026: €5,812.50/month (Bundeskabinett Beschluss)
- vdek (Verband der Ersatzkassen) — Beitragsbemessungsgrenze PV 2026: €5,812.50/month (same as KV)
- lohn-info.de — Beitragsbemessungsgrenze AV 2026: €8,450/month (same as RV)
⚠️ Informational estimate, not tax advice. Payroll software may differ in edge cases. Verify with a professional.
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