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Freelancer taxes

Freelancer taxes in Germany, in English: what you pay, what you file, and when (Steuern für Selbstständige)

As a freelancer or sole trader in Germany nobody deducts tax for you, so you report and pay it yourself: income tax (Einkommensteuer) with advance payments four times a year, VAT (Umsatzsteuer) unless you use the small business exemption, and trade tax (Gewerbesteuer) only if you run a trade. Your once-a-year filing is Anlage EÜR plus the income tax return, and for tax year 2026 the filing date without a tax advisor is 2 August 2027. You do not have to use a tax advisor, but in some situations you should.

Last reviewed: 2026-11-02

Your first month

Do these in order. One deadline runs from your first day of business.

  • Decide what you are: freelancer (Freiberufler) or trade (Gewerbe). This decides your registration, and whether trade tax can apply.
  • A trade only: business registration (Gewerbeanmeldung) at the town office when you start.
  • Everyone: send the tax registration questionnaire (Fragebogen zur steuerlichen Erfassung) through ELSTER within one month of starting (§ 138(1b) and (4) AO). You then get a tax number (Steuernummer) by post, and you need it on invoices.
  • On that form, choose regular VAT or the small business exemption (Kleinunternehmer), and estimate your profit. The profit estimate can set your first advance payments.
  • Open a separate bank account for the business. The law does not require this, but it makes every later step easier.

The taxes at a glance

Income tax (Einkommensteuer)

On profit, not turnover. For 2026 the first €12,348 is free (§ 32a EStG), and rates rise from there. Add solidarity surcharge at high income, and church tax if you are registered as a church member.

VAT (Umsatzsteuer)

You add 19% or 7% to invoices, and pay it on by the 10th day after the period, minus the VAT on your purchases (input VAT, Vorsteuer). Quarterly is the default, and monthly if the prior year's VAT was above €9,000 (§ 18(2) UStG).

Trade tax (Gewerbesteuer)

A trade only. Above €24,500 of profit, 3.5% times the municipal multiplier (Hebesatz). Most of it comes back as a credit against income tax (§ 35 EStG), but not always all of it.

Not a tax, but plan for it

Health insurance and pension are separate and depend on your status. This page does not cover them. Your own contributions are not business costs: they go in Anlage Vorsorgeaufwand.

The next dates, counted for you

General legal dates. A date in your own notice comes first. Weekends move to the next working day (§ 108(3) AO). Monthly VAT filers also file on the 10th of every month.

  • 10 November 2026: VAT advance return for October or the third-quarter return under a one-month extension (Dauerfristverlängerung).
  • 16 November 2026: trade tax advance payment, as 15 November is a Sunday.
  • 10 December 2026: income tax advance payment, and VAT advance return for November.
  • 31 December 2026: end of the year. Payments you make by this date count for 2026, with a ten-day exception for regular payments (§ 11 EStG).
  • 11 January 2027: VAT advance return for December or for the fourth quarter, as 10 January is a Sunday.
  • 15 February 2027: trade tax advance payment.
  • 1 March 2027: last date for your 2025 returns if a tax advisor prepares them. After 28 February 2027 the late-filing surcharge is generally mandatory.
  • 10 March 2027: income tax advance payment.
  • 1 April 2027: interest starts on open 2025 tax.
  • 17 May 2027: trade tax advance payment, as 15 May is a Saturday.
  • 10 June 2027: income tax advance payment.
  • 2 August 2027: 2026 income tax return, Anlage EÜR, annual VAT return and any trade tax return, without a tax advisor.
  • 16 August 2027: trade tax advance payment, as 15 August is a Sunday.

If you have not filed your 2025 return yet and you have no tax advisor, you are past 31 July 2026. Our income tax guide shows what to do and what it costs.

How much should I set aside?

A rough method, for 2026, with one example.

Suppose you expect €48,000 profit and €9,000 of deductible health and pension costs, leaving €39,000 of taxable income. The 2026 tariff in § 32a EStG gives about €6,894 of income tax, with no church tax. That is about €575 a month, or roughly 14% of profit, and the percentage climbs with income. This is a simplified example, not your tax.

Treat VAT differently. It was never your money, so move it aside as soon as a customer pays. In a first year with no advance payments set, the first assessment can ask for the whole year's tax plus advance payments for the next year on similar dates, so build the reserve from your first month.

Side income next to a job

You can be employed and freelance at the same time, and many people are. Your employer runs wage tax on your salary as before. The side work goes in your own return once profit exceeds €410 a year (§ 46(2) no. 1 EStG), and between €410 and €820 a hardship rule reduces the tax. You then send Anlage N, Anlage S or G, and Anlage EÜR, electronically.

A side income still needs the registration in month one, and it can start VAT duties unless you use the small business exemption. Check your employment contract too. It may ask you to report outside work. The rest of your income increases the rate on your side profit, so an extra €5,000 is taxed at your top rate rather than from zero.

Do I need a tax advisor (Steuerberater) as a freelancer?

  • Not by law. You may file yourself (§ 80 AO allows, but does not require, representation).
  • Choosing one gives you a real benefit: the later deadline, which is 1 March 2027 for 2025 rather than 31 July 2026.
  • An advisor is the right choice if you have foreign income or moved during the year, a classification dispute, property in the business, staff, a company of your own, a large back payment, or a tax audit.
  • You can mix: do your own bookkeeping and have an advisor check the annual return. Tax advisors in Germany work under a fee regulation (StBVV), and many also agree individual fees.
  • Language: an English-speaking advisor is not always easy to find, so ask before you sign. German letters and forms stay German either way.

Honest cost comparison

Other vendors' prices according to their own sites, as of 2 November 2026. Check their pages, as offers change.

  • ELSTER portal: free. Official forms in German, and you work out the profit yourself.
  • Accountable: according to its site, Bookkeeping €24.90 per month plus VAT, with a free yearly closing for Kleinunternehmer. Taxes €37.40 per month plus VAT, with income tax, EÜR, trade tax and annual VAT. Lower on annual billing.
  • Norman: according to its site, Klein €12 per month for Kleinunternehmer and Pro €28 per month for people charging VAT, excluding VAT, or €9 and €21 on yearly billing; new customers pay less in the first three months. Klein's tax declarations come with yearly billing only.
  • Jahresabschluss.io: the tax registration interview is free, and sending the questionnaire costs €35 once. Income tax return: free to prepare, €50 to send. Bookkeeping & EÜR: €99 per workspace per month, including VAT returns, Anlage EÜR for one year and the returns of one tax year per company per twelve months.
  • Tax advisor: see our cost guide. The range depends on your income and on what you hand over.

For a one-person freelancer with few invoices, Accountable or Norman will often cost less. Our software is worth it mainly if you need more depth: a cash business, fixed assets, foreign income with direct filing, a move toward a GmbH with annual financial statements later, or several companies under one login. It gives no individual tax advice (StBerG), it does not offer payroll, and most official form labels stay in German on purpose. The filing itself is always German. Direct filing uses your own ELSTER certificate.

Where to go next

Freiberufler or Gewerbe

Which group you are in and what to do if the tax office disagrees.

Kleinunternehmer

The €25,000 and €100,000 limits, invoice wording, foreign clients, and passing the limit.

Anlage EÜR

The profit form translated line by line, with an example.

Income tax return

Forms, late filing, and the expat cases.

Kassenbuch

Only if you take cash: the daily cash record and what a TSE is.

Frequently asked questions

How much tax do freelancers pay in Germany?

There is no fixed percentage. Income tax is progressive: nothing up to €12,348 of taxable income in 2026, then rising. At €39,000 taxable income it is about €6,894. VAT is separate and passes through to customers, and trade tax depends on your classification.

Can I do all of this in English?

You can read about it in English, and work on English screens in much of the software. The tax office writes in German, the forms are German, and the official language stays German (§ 87 AO). Allow time for this, or get help with letters.

When is my first tax payment?

VAT starts with your first period if you charge it. Income tax advance payments start when the tax office sets them, often after your questionnaire. Otherwise, the first bill may come with your first assessment, so plan ahead.

Are quarterly VAT returns normal for a new freelancer?

For tax years up to 2026, a start-up's first return period depends on the tax for the year, converted to a full year, under a temporary rule. Quarterly is common at low turnover. The wording of § 18(2) UStG makes monthly the rule again for those starting after this temporary rule ends, so check your own notice.

Can I deduct my home office?

Under conditions, usually a day rate of €6 up to €1,260 a year for days you work at home (§ 4(5) no. 6c EStG), or a separate work room if it is the centre of your work. It goes in Anlage EÜR. It does not depend on being a freelancer or a trade.

Is this software good for a very small freelancer?

Often it is more than you need. If you only write a few invoices and have no cash or staff, one of the freelancer tools above or the free ELSTER portal may be enough. We say this openly because the €99 price is only worth it with more volume or depth.

Do I have to charge VAT to clients outside Germany?

Often not on services to foreign businesses, because the supply counts as made where the customer is. The rules for private customers and digital services differ. See our Kleinunternehmer and reverse charge guides, and ask a tax advisor if this is your main income.

Primary sources and scope

Authoritative references for the key claims on this page. Check the current text before making a filing or accounting decision.