Net Income
34.623,75 €
Total Tax
37.376,25 €
Effective Rate
51.9%
Trade Tax: None (Freiberufler exempt)
Doctors, Dentists, Veterinarians, Lawyers, Notaries, Patent Attorneys, Tax Advisors, Auditors, Architects, Engineers, Journalists, Interpreters, Translators, Naturopaths, Psychotherapists, Physiotherapists, Midwives, Artists, Authors, Scientists, Teachers, Educators, Pilots, Pharmacists, Consultants, Designers, Software Developers, Photographers, Musicians
Key Advantages
- No Gewerbesteuer (trade tax)
- Simple income-surplus accounting (EueR)
- No Gewerbeanmeldung required
- No mandatory IHK membership
What qualifies as a Freiberufler in Germany?
Freiberufler (liberal professionals) are defined in s 18 EStG and include: scientific, artistic, literary, teaching, and educational professions. The key categories are: catalog professions (explicitly listed like doctors, lawyers, engineers), similar professions (activities similar to listed ones), and self-employed scientific/artistic/educational activities. The Finanzamt makes the final determination.
Do Freiberufler pay trade tax (Gewerbesteuer)?
No, this is the biggest tax advantage. Freiberufler are exempt from Gewerbesteuer, which can save significant amounts (typically 10-17% of profit depending on the municipal Hebesatz). However, if you engage in commercial activities alongside your Freiberufler work, the commercial portion may trigger trade tax. Keep activities clearly separated.
What health insurance options do Freiberufler have?
Freiberufler can choose between public (gesetzliche) and private health insurance. Public insurance costs approximately 14.6% + Zusatzbeitrag (~2.5%) of profit, with both employee and employer shares paid by you. Private insurance premiums are fixed and depend on age, health status, and coverage level. Many Freiberufler under 55 with good health choose private insurance for better coverage at potentially lower cost.
Do Freiberufler need to pay into the pension system?
Most Freiberufler are NOT required to contribute to the state pension (Rentenversicherung). However, some professions have mandatory contributions to professional pension funds (berufsstaendische Versorgungswerke), including lawyers, doctors, architects, and tax advisors. Voluntary state pension contributions or private retirement savings (Ruerup/Basis-Rente) are recommended and tax-deductible.
Disclaimer: These calculations are estimates based on 2025 German tax rules and should not be considered professional tax advice. Consult a Steuerberater for your specific situation.
Who qualifies as a Freiberufler, tax advantages, and how it differs from Gewerbe
What is a Freiberufler?
A Freiberufler is a self-employed professional in a recognised liberal profession such as doctor, lawyer, architect, engineer, journalist, or IT consultant. Freiberufler do not need a Gewerbeschein (trade licence) and do not pay Gewerbesteuer (trade tax). On a profit of €80,000, skipping trade tax saves you roughly €11,000 to €14,000 per year compared to a Gewerbetreibender.
Which professions count as freiberuflich?
The full list is in §18 EStG and includes: doctors, dentists, lawyers, tax advisers, architects, engineers, journalists, interpreters, scientists, artists, and similar professions. IT consultants can qualify if they do engineering-level work. The Finanzamt decides your status when you register. If in doubt, apply as Freiberufler and let them assess.
What taxes do Freiberufler pay?
Freiberufler pay Einkommensteuer at progressive rates (14% to 45%), Solidaritätszuschlag if applicable, and Umsatzsteuer (VAT) at 19% unless using the Kleinunternehmerregelung. They do NOT pay Gewerbesteuer. On €60,000 profit, a Freiberufler pays about €14,000 in income tax. A Gewerbetreibender would pay an additional €7,000 to €10,000 in trade tax.
Can Freiberufler use the simple EÜR accounting?
Yes, Freiberufler can always use the Einnahmen-Überschuss-Rechnung (EÜR) regardless of their turnover or profit level. They never need to prepare a Bilanz (balance sheet). This saves significant accounting costs — a Steuerberater charges about €500 to €1,500 for an EÜR, compared to €3,000 to €6,000 for a full set of accounts.
Do Freiberufler need to join the IHK?
No, Freiberufler are exempt from compulsory membership in the Industrie- und Handelskammer (IHK). This saves the annual IHK contribution, which ranges from €150 to €500 for small businesses. Some professions have their own chambers (e.g. Ärztekammer for doctors, Rechtsanwaltskammer for lawyers), which may charge their own fees.
What social insurance do Freiberufler pay?
Freiberufler must have health insurance (gesetzlich or private, about €500-€900/month). Pension insurance is voluntary for most, but mandatory for some professions (teachers, midwives, artists via the Künstlersozialkasse). You should budget at least €300-€500 monthly for private pension savings. Total social insurance costs are typically €800-€1,200 per month.
Bundesfinanzministerium-Aligned: Based on 2025 Bundesfinanzministerium rates and thresholds. For personal advice, speak to a qualified Steuerberater (tax adviser).
Disclaimer: This calculator provides estimates based on current German tax rates and thresholds for the 2025 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified tax adviser before making financial decisions. Read our terms
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