Illustrative calculation for €50,000 gross annual income.
Freelancer (Freiberufler)
Liberal profession: progressive income tax via the §32a EStG formula, plus Soli above a threshold and voluntary statutory health/care insurance. No trade tax.
| Income tax (§32a EStG) | €10,548 |
| Solidarity surcharge (Soli) | €0 |
| Statutory health insurance (GKV) | €8,450 |
| Long-term care insurance (Pflege) | €1,800 |
| Total tax & contributions | €20,798 |
| Effective rate | 41.6% |
| Net income | €29,202 |
Assumptions
- Income tax via the §32a EStG 2026 continuous tariff formula (Grundfreibetrag €12,348; zones rising to 42%, then 45% above €277,825)
- Solidaritätszuschlag 5.5% applies only above €20,350 assessed tax, with the 11.9% Milderungszone phase-in; most freelancers below ~€68k taxable pay €0
- Statutory health 16.9% (14.0% reduced rate without sick pay + 2.9% average Zusatzbeitrag) and long-term care 3.6% (childless would be 4.2%), on a base clamped to the 2026 minimum (€15,819.96/yr) and Beitragsbemessungsgrenze (€69,750/yr)
- Church tax is DISABLED (adds ~8-9% of income tax for church members)
- Gewerbesteuer (trade tax) is NOT applied: a Freiberufler is exempt
- Simplification: social-insurance contributions are NOT deducted from the income-tax base (Vorsorgeaufwendungen relief is not modelled), so tax is somewhat overstated
- The entered income is treated as annual taxable profit (revenue net of business expenses)
- Effective rate is total tax and contributions over gross profit
Who it's for
- German tax resident carrying on a liberal profession (Freiberufler), e.g. developer
- Freiberufler are exempt from Gewerbesteuer (trade tax)
- Taxed on net profit (revenue minus documented business expenses)