The local multiplier used for German municipal business tax (Gewerbesteuer) can create a substantial difference between otherwise identical calculations. It is only one part of the final result, so any comparison needs the right qualifications.
Published multipliers used in this guide
Schönefeld publishes 240%. Berlin's 2026–2027 budget legislation sets 410%. Frankfurt lists 460%, Hamburg confirmed 470% for 2026, and Munich lists 490%. These values should still be rechecked before a transaction because municipalities can change them.
How the multiplier enters the formula
The tax office determines the taxable business income and assessment amount. The municipality then applies its local multiplier. A simplified corporation example is: taxable business income × 3.5% × local multiplier.
Illustrative €100,000 corporation example
Using the simplified formula, €100,000 produces €8,400 in Schönefeld, €14,350 in Berlin, €16,100 in Frankfurt, €16,450 in Hamburg and €17,150 in Munich. This does not include company-specific additions, deductions or allocation between establishments.
Why a low multiplier is not enough
A company cannot secure a particular tax outcome simply by renting a mailbox. The real place of management, any fixed places of business and the company's actual operations all matter. Plan a relocation with tax and legal advisers and support it with genuine local activity.