Corporate tax in Germany, 2026.
Full stack, city by city.
15% federal plus solidarity surcharge plus municipal Gewerbesteuer. Combined 30 to 33% in our four cities. Worked examples and deduction map.
German corporations face three taxes stacked: Körperschaftsteuer (KStG), Solidaritätszuschlag (SolzG), and Gewerbesteuer (GewStG). Körperschaftsteuer is flat at 15% federal. Solidarity surcharge adds 5.5% of the Körperschaftsteuer amount (still payable by corporations after the 2021 individual-tax reform, a point competitors often get wrong). Gewerbesteuer is municipal, with base rate 3.5% multiplied by the city's Hebesatz.
Körperschaftsteuer, 15% (§ 23 KStG)
§ 23 (1) KStG fixes the federal corporate tax rate at 15%. Applies to: GmbH, UG, AG, SE, KGaA, eG, non-resident corporations on DE-source income.
Solidaritätszuschlag, 5.5% of KSt (§ 4 SolzG)
§ 4 SolzG: 5.5% of the KSt amount (not the base). So 15% × 5.5% = 0.825% of taxable income. The 2021 Solz reform that reduced or eliminated it for most individuals did not touch corporations, they pay the full 5.5%.
Gewerbesteuer, municipal
Base rate (Steuermesszahl) 3.5% under § 11 (2) GewStG. Municipal Hebesatz from 200% (statutory minimum per § 16 (4) GewStG) up to ~580% in some metros. GewSt is NOT deductible from the KSt base (§ 4 (5b) EStG).
Our four cities, 2026 Hebesatz
Berlin 410% = effective GewSt 14.35%. Hamburg 470% = 16.45%. Düsseldorf 440% = 15.40%. Munich 490% = 17.15%. Cross-check each city's annual Haushaltssatzung as rates are adjusted.
Distribution to natural-person shareholder
Dividend suffers Kapitalertragsteuer 25% + Solz 5.5% = 26.375% withholding. Full chain from operating profit to personal dividend: approximately 48 to 52% effective, which is why Holding structures exist.
§ 8b KStG exemption for corporate chains
Distribution from operating GmbH to Holding-GmbH: 95% exempt, 5% treated as non-deductible expense (§ 8b KStG). Net leakage ~1.5%. See worked examples.
Deductions, credits, specials
R&D: Forschungszulage under FZulG up to 25% on eligible R&D wages + contract research, capped at €2.5M/year (2024 reform). Loss carry-back (§ 10d EStG) to €1M. Loss carry-forward: unlimited time, 60% Mindestbesteuerung above €1M annual. Interest barrier (Zinsschranke, § 4h EStG): 30% EBITDA, safe harbour €3M.
Filing calendar
Monthly VAT Voranmeldung by day 10 of following month. Annual KSt + GewSt + VAT returns by 31 July of year + 1; with tax advisor, extended to end-February year + 2 (§ 149 AO). Bundesanzeiger publication within 12 months.
Combined effective corporate tax, four cities, 2026
| City | Hebesatz | KSt 15% | Solz 0.825% | GewSt | Total |
|---|---|---|---|---|---|
| Berlin | 410% | 15.00% | 0.825% | 14.35% | 30.175% |
| Düsseldorf | 440% | 15.00% | 0.825% | 15.40% | 31.225% |
| Hamburg | 470% | 15.00% | 0.825% | 16.45% | 32.275% |
| Munich | 490% | 15.00% | 0.825% | 17.15% | 32.975% |
Frequently asked questions
What is the corporate tax rate in Germany in 2026?
Combined 28 to 33% depending on city. KSt 15% + Solz 0.825% + GewSt 14-17%. Berlin 30.175%, Düsseldorf 31.225%, Hamburg 32.275%, Munich 32.975%.
Do German corporations still pay the Solidaritätszuschlag?
Yes. The 2021 Solz reform exempted most individuals but not corporations. Corporations still pay 5.5% on the KSt amount.
How much is the Gewerbesteuer in Berlin in 2026?
Effective 14.35%, calculated as 3.5% base × 410% Hebesatz.
Which German city has the lowest corporate tax?
Among our four: Berlin (30.175%). NRW neighbours like Monheim 250% Hebesatz and Leverkusen 250% offer lower combined rates for tax-optimised structures, subject to § 10 AO substance requirement.
How do I calculate combined corporate tax on €100,000 profit?
Berlin example: KSt €15,000 + Solz €825 + GewSt €14,350 = €30,175 (30.175%). Net €69,825.
Can I deduct Gewerbesteuer from my corporate income?
No. § 4 (5b) EStG and § 7 GewStG exclude GewSt from the deductible base.
Is there a R&D tax credit in Germany?
Yes. Forschungszulage under FZulG: up to 25% on eligible R&D wages and contract research, capped at €2.5M annually.
How does the Holding-GmbH reduce total tax under § 8b KStG?
95% exemption on qualifying dividends and capital gains; only 5% taxable at ~30% = ~1.5% leakage. See worked examples.
When are annual corporate tax returns due?
31 July of year + 1. With tax advisor: end-February of year + 2 under § 149 AO extension.
How does loss carry-back work for German corporations?
§ 10d EStG: up to €1M carry-back to prior year (reform-dependent; confirm current cap).
What is the Zinsschranke (interest barrier) and when does it kick in?
§ 4h EStG: net interest expense limited to 30% of adjusted EBITDA. Safe harbour: €3M. Excess carries forward.
How is a GmbH taxed versus a US LLC or UK Ltd?
GmbH: corporate tax at entity level, dividends withheld. US LLC: typically pass-through (flexible). UK Ltd: UK Corporation Tax. Treaty relief via DTA, case-by-case.
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