Germany Corporate Income Tax
Detailed corporate income tax rates and rules for Germany in 2026.
The German corporate tax system consists of three components: a federal corporate income tax (Körperschaftsteuer) at a flat rate of 15%, a solidarity surcharge of 5.5% on the corporate tax (adding approximately 0.825%), and a municipal trade tax (Gewerbesteuer) that varies by municipality but averages around 14%. This results in a combined effective corporate tax rate of approximately 30%, though the exact rate depends on the municipality where the business is located.
Standard Rate
15%
Additional Notes
Trade tax rates vary significantly between municipalities, with the effective rate ranging from about 7% to over 17%. Small businesses and sole proprietorships may partially offset trade tax against income tax. Germany has a participation exemption system where 95% of dividends and capital gains from qualifying corporate shareholdings are exempt from corporate tax. Loss carryforwards are permitted, but loss carrybacks are limited to €1 million. Germany also enforces strict transfer pricing rules aligned with OECD guidelines.
How Germany Corporate Tax compares
Germany’s corporate tax rate of 30% is the 16th highest of 203 countries TaxAtlas tracks, above the global average of 22.2% and Europe’s regional average of 19%.
