Taxes for the self-employed

how much do you have to pay as a self-employed individual?

Taxes for the self-employed

If you have lived in Germany for more than 6 months in a 2 year period you are required to pay tax on your worldwide income and German property. Individuals living in Germany for less than 6 months are not considered as tax residents and are only obliged to pay tax on the income earned in the country. You should also check you never pay tax twice on the same income received from other EU countries.

How much do you have to pay?

The more you earn, the higher your tax rate will be. It can vary from 14% to 45%. To get an idea of how much tax you will have to pay, enter your income in the tax calculator.

There is also a solidarity levy (Solidaritätszuschlag), equivalent to 5.5% of your income tax.Individuals affiliated with a religious community which charges taxes are also obliged to pay church tax, which is based on your income tax bill - 8% in Bavaria and Baden-Württemberg, 9% in other parts of Germany.

You must make quarterly advance payments (based on your return for the previous year) to offset your expected final tax liability. If you've just started a new business, you will have to provide the tax office with a forecast of your earnings.

On the basis of that, they will calculate the size of the advance payments you have to make.Returns must be filed with the relevant tax office by the end of May of the following year.

Your tax office should provide you with detailed advice on your rights and obligations. To make a complaint, you should do so at your local tax office in a month of made decision.

Further reading

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