German Freelance Tax Calculator
Based on your input our German freelancer tax calculator will generate the amount of your:
a) Estimated Profit and Loss Amount (Anlage EÜR)
b) Estimated Taxable Income
c) Estimated Freelancer Income Tax (Einkommensteuererklärung)
d) Estimated Taxes as a Family Unit (if applicable)
It is very easy to use this German freelancer tax calculator.
First, add your freelancer income and business expenses to the calculator.
This will generate your estimated amount for your Profit and Loss statement. This report is called ‘Anlage EÜR’ in German.
Then add your private expenses to calculate your taxable income.
The chart below will automatically visualise your estimated net and gross income.
If you pay taxes as a married couple, then toggle the ‘Ehegattensplitting’ option to YES.
This will calculate joint taxes for you and your partner
Yes, of course!
In the Your Partner’s Details section leave ‘Partner’s Business Expenses’ as blank.
Just add their annual salaried income and personal expenses to calculate their taxable income.
Scroll down to read more FAQs about German freelancer taxes and an explanation of some common tax terminologies.
Read our Beginner-Friendly Guide to
German Freelancer Taxes
FAQs: Tax Reports for Freelancers in Germany
Most frequent questions and answers about German freelancer taxes, tax reports for freelancers in Germany and how to calculate them.
Anlage EÜR is short for Einnahmenüberschussrechnung.
It is basically a profit and loss statement for your freelance business.
Most freelancers in Germany must submit this report to Finanzamt as a part of their annual tax declaration.
You deduct all your business-related expenses from your total business income for the year.
The remaining amount is your profit (or loss if negative)
After calculating your profit and loss, you must calculate your taxable income for German freelancer taxes.
You do this by deducting your personal expenses from your profits (the amount generated in your Anlage EÜR).
After this deduction, you are left with your taxable income for your freelancer taxes in Germany.
This amount goes into your annual income tax return (Einkommensteuererklärung).
These are expenses that you incur for your freelance business. It could include:
- office equipment,
- business related software,
- web hosting fee,
- Upwork service fees,
- office rent,
- home office costs,
- business-related travel or accommodation,
- internet and phone bills,
- business liability insurance,
Some people might have income besides their freelancing activities.
This could be income from a part-time job, monthly rent from a property, interest on investments, dividend from stocks etc.
Unemployment benefits, child benefits can also be added to the ‘other income’ section.
Personal expenses are annual expenses such as
- health insurance,
- personal liability insurance,
- pension funds,
- disability insurance,
- accident or life insurance
Freelancers can also add their previously paid taxes in personal expenses.
With Ehegattensplitting, married or partnered taxpayers in Germany can significantly reduce their contributions to the tax authorities. Married couples and registered civil partners benefit from this. You can choose between single or joint assessment when filing your tax return.
The tax rate for freelancers in Germany depends on their taxable income.
The current income tax rate in Germany ranges from 14% to 42%.
You may also have to pay:
- a solidarity tax of 5.5%
- a church tax (if you are a member of a church.)
As of 2021, anyone with income below €9.744 is exempted from paying income tax in Germany.
This is called Grundfreibetrag or Steuerfreibetrag in German.
Freelancers in Germany pay their income tax with quarterly prepayments and a final payment at end of the financial year.
The deadlines for these advance payments are:
- 10 March,
- 10 June,
- 10 September and
- 10 December
Any under or overpayments are adjusted at the end of the year. For instance, if you pay more in taxes than you are actually due at the end of the year, Finanzamt will refund you.
It is possible to file your own taxes using online tax filing tools.
Finanzamt offers its own online tax filing tool called ELSTER. It is completely in German though so it is not most suitable for non-German speakers.
If you prefer to file your taxes in English you can use an online tool such as GetSorted.
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