Germany Limited liability company (GmbH/UG) tax calculator 2026
A German GmbH or UG pays about 30% total on profits in 2026: corporate income tax (Körperschaftsteuer) of 15.825% (15% plus the 5.5% solidarity surcharge) plus municipal trade tax (Gewerbesteuer) that brings the combined burden to roughly 30%. Distributed dividends face a further 26.375% Abgeltungsteuer.
This calculator estimates the corporate tax a German limited liability company (GmbH or UG) owes on its annual profit, combining Körperschaftsteuer and Gewerbesteuer, and shows the after-tax cash left after the 26.375% dividend withholding on distributions.
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Result
Germany Limited liability company (GmbH/UG) tax rates 2026
| Band or item | Rate |
|---|---|
| Imposta società (KSt+Gewerbe) | 30% |
| Dividend tax (on distribution) | 26.38% |
Source: taxsummaries.pwc.com
How is a German GmbH taxed in 2026?
A GmbH or UG is taxed at company level on its worldwide profit through two separate taxes. First, federal corporate income tax (Körperschaftsteuer, KSt) applies at a flat 15%, on top of which the 5.5% solidarity surcharge (Solidaritätszuschlag) is levied against the KSt itself. That produces an effective KSt rate of 15.825% (15% x 1.055).
Second, every commercial company pays municipal trade tax (Gewerbesteuer), calculated on the trade profit. Because the local multiplier (Hebesatz) is set by each municipality, the trade tax varies by location, but combined with KSt it typically pushes the total company-level rate to around 30%. The calculator uses this ~30% combined effective rate as the headline burden on GmbH profits.
Corporate tax plus dividends: the two-layer system
Germany uses a classical two-layer system. The GmbH first pays the combined ~30% corporate charge on its profit. When the remaining after-tax profit is distributed to individual shareholders, a second layer applies: the flat capital income tax (Abgeltungsteuer) of 26.375% (25% plus the 5.5% solidarity surcharge) is withheld on the dividend.
This means retained earnings inside the company are taxed only at the ~30% corporate level, while distributed profit carries both the corporate tax and the 26.375% dividend withholding. Deciding whether to retain or distribute is therefore central to a GmbH's effective tax planning.
Worked example: €100,000 of GmbH profit
Suppose a GmbH earns €100,000 of taxable profit in 2026.
- Körperschaftsteuer at 15.825%: €15,825.
- Trade tax (Gewerbesteuer) brings the combined company charge to roughly 30%, so total corporate tax is about €30,000.
- After-tax profit available in the company: about €70,000.
If the full €70,000 is then distributed to an individual shareholder, the 26.375% Abgeltungsteuer withholds a further €18,462.50, leaving roughly €51,537.50 in the shareholder's hands. The combined corporate-plus-dividend burden on the original €100,000 is therefore about 48.5%. Keep in mind the exact trade-tax figure depends on your municipality's Hebesatz.
Frequently asked questions
How much corporate tax does a German GmbH pay in 2026?
A GmbH pays a combined rate of about 30% on its profit: 15.825% Körperschaftsteuer (15% plus the 5.5% solidarity surcharge) plus municipal Gewerbesteuer that varies by the local Hebesatz.
What is the Körperschaftsteuer rate?
The corporate income tax rate is 15%, but the 5.5% solidarity surcharge is added on top of it, giving an effective Körperschaftsteuer rate of 15.825%.
How are GmbH dividends taxed?
Dividends distributed to individual shareholders are subject to the flat Abgeltungsteuer of 26.375% (25% capital income tax plus the 5.5% solidarity surcharge), withheld on top of the corporate tax the GmbH already paid.
Does a UG pay the same tax as a GmbH?
Yes. A UG (haftungsbeschränkt) is a form of GmbH and is taxed identically: the same ~30% combined Körperschaftsteuer and Gewerbesteuer, and the same 26.375% dividend withholding.
Why does the trade tax vary?
Gewerbesteuer depends on each municipality's multiplier (Hebesatz), so the exact rate differs by location. Combined with the 15.825% Körperschaftsteuer, it typically brings the total company-level burden to around 30%.
What is the total tax on distributed GmbH profit?
Distributed profit is taxed twice: about 30% at company level, then 26.375% on the dividend. On €100,000 of profit, the combined burden is roughly 48.5%, leaving about €51,537 for the shareholder.
Official sources
- Bundeszentralamt für Steuern — Corporate & personal income tax