In 2026, the City of Cologne levies trade tax (Gewerbesteuer) at a multiplier (Hebesatz) of 475% (source: City of Cologne). Only commercial businesses pay trade tax, not freelancers under § 18 EStG. Sole proprietorships and partnerships receive a €24,500 allowance on trade income under § 11(1) GewStG. The Hebesatz is applied to the tax base of 3.5% of trade income after the allowance. Example for a sole proprietor in Cologne with €50,000 trade income: (€50,000 − €24,500) × 3.5% × 475% = approx. €4,239.38 trade tax.
Tax advisers based in Cologne belong to the Steuerberaterkammer Köln. Whether someone is an appointed Steuerberater can be checked in the official register (Steuerberaterverzeichnis) of the Bundessteuerberaterkammer. The Federal and State Statistical Offices recorded 12,360 trade registrations and 8,061 trade deregistrations in Cologne in 2025.
Calculation: (€50,000 − €24,500 allowance under § 11(1) GewStG) × 3.5 % base rate × 475 % multiplier = €4,239.38. Under § 35 EStG four times the tax base reduces income tax, leaving about €669.38 as an extra cost.