What is the tax rate for the self-employed

Tax table and tax rate for income

The annual tax return does not necessarily have to be carried out by a tax advisor. Knowing the exact Facts every freelancer can get the best out of himself and the question of how high the tax burden will be for the past financial year can also be clarified. To do this, you need to know how to use your Calculate income as a freelancer, should be your personal Know the tax rate and know that you can use the income tax calculator.

How is the income calculated?

All income must be taxed. Income includes all funds that flow into you. First of all, there is of course the income from self-employed work as a freelancer. In addition, there is income from commercial operations, employment, agriculture or forestry, capital assets, etc.

This then results in the Sum of income. From this total, the personal, tax-deductible expenses and lump sums, such as the retirement benefit or the Relief amount for single parents billed.Exceptional costs and Special editions subtract as well and keep your income. From this one will eventually become the Child allowance deducted. In the end it stands the taxable income (please see table above). The income of a freelancer is subject to the same tax rate that applies to an employee.

Important: Will the Crossed the line to become a small business owner, so not only does income tax have to be paid, but it is also about that Calculation of sales tax.

Average tax rate, top tax rate and marginal tax rate

To get the average tax rate, the Quotient of income tax and taxable income educated. This results in a number that shows what proportion of the income is due to the income tax of the freelancer. There are also those Income tax table (see below). The Top tax rate is the highest rate that can be accrued on an income. At the same time, the top tax rate is the highest marginal tax rate. There is one, though Tax progressionthat causes different tax scales and tax rates be applied. This means that not all income is taxed at the top tax rate.

Note: The Marginal tax rate shows how much the next euro that has to be taxed will be charged.

The income tax rates

Two values ​​are relevant for income tax rates: That Annual income in euros and the Marginal tax rate in percent. Up to an income of 8,004 euros falls no taxes at. Thereafter and up to an earnings of 13,469 euros become between 14 and 24 percent tax calculated. The next limit is included 52,881 euros and the underlying income becomes with Tax rates between 24 and 42 percent taxed. Up to an income of 250,730 euros becomes the marginal tax rate of 42 percent applied. Then follows the Top tax rate of 45 percent. These gradations are called progression designated.

Tax table and tax calculator

Below you will find an excerpt from the tax table with the basic tariffs. Be here depending on income different tax rates and marginal tax rates called. Every freelancer can read from this how high his tax burden at what income is.Extract from the income tax table - basic tariff:If you want to know exactly what tax burden you will have to pay, use our income tax calculator. This calculates the tax burden for you almost to the cent from income and deductible expenses.

to →Tax calculator

Do tax tables still apply?

Thanks to modern software and the "Gross Net Calculator" In the near future, tax tables will probably be completely superfluous on the Internet. Nevertheless, they are still widely used, especially in small companies. The can be read here Social security contributions and the tax deductions. As Alternative to the automatic creation of wage tax tax tables are still used today.

Control programs

The modern tax programs are increasingly replacing the simple income tax tables on paper. The calculation of income tax is ultimately a lot easier and even allowances or income-related expenses can be directly taken into account. An additional Income tax calculator In addition to the normal control program, however, it can still be useful, because the determination of your own values ​​can be checked again with it.

My recommendation: With these tools you can get your finances and taxes under control!

Take advantage of the offers from lexoffice.

Note: This information is not a substitute for individual tax advice.

Author: Jürgen Busch

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Tax table and tax rate for income
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