Tax changes often look technical at first sight — but they can have very concrete financial consequences for companies. The new minimum multiplier for trade tax is one of them: from 2027 a minimum of 280% applies across Germany. Here in brief is what changes, who is affected and where an early review is worthwhile.
What changes
The Ninth Act amending provisions of tax advisory law and tax law of 29 June 2026 (BGBl. 2026 I Nr. 197) introduces a nationwide minimum multiplier of 280% for trade tax in § 16 Abs. 4 GewStG.
The new rule applies for the first time to the 2027 assessment period.
How the minimum multiplier works out
Trade tax is calculated as follows:
Trade tax = trade income × 3.5% base rate × multiplier
An example shows the effect:
Trade tax · Germany
Minimum multiplier of 280 per cent
From the 2027 assessment period a nationwide minimum multiplier of 280% applies.
Calculated burden · trade income of 100,000 €
First applicable for the 2027 assessment period · § 16 Abs. 4 GewStG
| Basis of calculation | Multiplier 200% | Multiplier 280% |
|---|---|---|
| Trade income | 100,000 EUR | 100,000 EUR |
| Base amount | 3,500 EUR | 3,500 EUR |
| Trade tax | 7,000 EUR | 9,800 EUR |
| Additional burden | – | 2,800 EUR |
In municipalities that have so far applied a multiplier below 280%, the minimum burden rises by up to 40% on the calculation.
Who is particularly affected?
The new rule affects above all:
- companies in municipalities with low multipliers so far — often structurally weaker or rural areas that have used low rates to attract businesses.
- companies whose choice of location has been motivated in part by tax, particularly in classic trade tax structures using municipalities with low multipliers.
What companies should do now
Where clients have permanent establishments in municipalities with low multipliers, we recommend examining the effect on their tax burden from 2027 early. That applies in particular in liquidity and tax planning and where decisions on location are pending.
Existing structures built around the municipal multiplier should also be reviewed, since the tax advantage will be considerably smaller from 2027 or will disappear entirely in some cases.
We are glad to discuss with you individually how the new rule affects your company and what action follows from it.
Source: Ninth Act amending provisions of tax advisory law and tax law of 29 June 2026, BGBl. 2026 I Nr. 197 (§ 16 Abs. 4 GewStG).