Profit allowance 2026 (Gewinnfreibetrag)
Definition
The profit allowance (Gewinnfreibetrag, § 10 EStG) reduces the taxable profit of individuals with business income, that is the self-employed, one-person firms and trade licence holders. It has two parts: the basic allowance needs no investment and is, in 2026, 15.00 % of profit up to €33,000, so at most €4,950. Above that comes the investment-based allowance, graduated at 13.00 %, 7.00 % and 4.50 %, up to €46,400 a year in total.
Rates and limits by year
The band limits are cumulative profits, counted from the end of the basic allowance. 2027: as currently known, changes possible before the year starts.
The rules
- Basic allowance: Applies automatically, without any investment. The SVS and tax calculator always includes it.
- Investment-based part: Only as far as the same year sees actual investment in eligible assets or securities. The calculator therefore does not apply it automatically.
- With a flat rate: If profit is determined at a flat rate, only the basic allowance applies, not the investment-based part.
Example: profit €60,000 (2026)
A round profit above the €33,000 limit, so that both parts apply. The investment-based part is only available if at least as much is invested in eligible assets or securities in the same year.
See also
- Investment allowance, the alternative per asset, never both at once.
- Flat-rate expenses, flat-rate expenses, then with the basic allowance only.
- Small-business flat rate, the other flat rate, likewise with the basic allowance only.
- •§ 10 EStG 1988 (RIS)