German allowance on the sale or cessation of a business
The allowance is NOT lost at EUR 136,000; from there it MELTS euro for euro and is only exhausted at EUR 181,000. In between, each euro of gain raises the taxable base by TWO euros.
2026 rules — verified on September 22, 2026Free, no account
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Sources and assumptions
- gesetze-im-internet.de — EStG § 16 Abs. 4 Satz 1 — tax year 2026, verified on September 22, 2026
Excerpt from the source : « so wird der Veräußerungsgewinn auf Antrag zur Einkommensteuer nur herangezogen, soweit er 45 000 Euro übersteigt »
- gesetze-im-internet.de — EStG § 16 Abs. 4 Satz 3 — tax year 2026, verified on September 22, 2026
Excerpt from the source : « Er ermäßigt sich um den Betrag, um den der Veräußerungsgewinn 136 000 Euro übersteigt. »
- gesetze-im-internet.de — EStG § 16 Abs. 4 Satz 1 — tax year 2026, verified on September 22, 2026
Excerpt from the source : « Hat der Steuerpflichtige das 55. Lebensjahr vollendet oder ist er im sozialversicherungsrechtlichen Sinne dauernd berufsunfähig »
Calculation assumptions
- The allowance is granted only ON APPLICATION (s. 16(4) sentence 1): it does not arise by itself with age.
- The gain on sale or cessation has already been determined: this calculator neither allocates it nor values any business assets.
- The rate relief of EStG s. 34 is left aside: it applies alongside this allowance but follows a rule of its own.
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This result is provided for information purposes only and does not constitute personalised tax advice. Check your situation with the tax authorities or a professional.