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Taxes

Pension Taxation Calculator

Determine the taxable portion of your pension and the income tax due in retirement. Free online, no registration required, with 2026 tax rates and allowances.

Updated 2026 Data stays local Free

Monthly: €1,500.00

Taxation share

84.0%

Taxable portion

€15,120.00

Pension tax allowance

€2,880.00

Tax calculation

Annual gross pension€18,000.00
Taxable portion (84.0%)€15,120.00
Tax-free pension allowance€2,880.00
Estimated income tax€458.00
Net pension / year€17,542.00

Monthly gross pension

€1,500.00

Monthly pension after tax

€1,461.83

The taxation share applies for life from the year pension begins. 2026: 84.0%. From 2058 pensions will be taxed at 100%. Tax depends on other income and deductions. Without guarantee.

Note: These calculations are for informational purposes only and do not replace professional tax or financial advice. All information without guarantee.

FAQ

Frequently Asked Questions

How are pensions taxed in Germany?

The taxable portion of statutory pensions depends on the year retirement begins. For 2026 retirees, 84.0% is taxable. By 2058, 100% of the pension will be taxable.

Is there a basic tax-free allowance for pensioners?

Yes, the same basic tax-free allowance of 12,348 euros (2026) applies. In addition, the non-taxable portion of the pension (determined by the year of retirement) remains fixed for life.

Are the 2026 German tax values current?

Yes — all tax rates, allowances and contribution ceilings reflect 2026: basic allowance €12,348, top tax rate 42 % from €69,879, Soli exemption €20,350. Source: German Federal Ministry of Finance (BMF) and gesetze-im-internet.de.

Guide

Quick Answer

The pension taxation calculator determines the taxable portion of your statutory pension. The taxation share depends on the year in which you began drawing your pension.

What is the Pension Taxation Calculator?

The pension taxation calculator determines the taxable portion of your statutory pension. The taxation share depends on the year in which you began drawing your pension.

How does the Pension Taxation Calculator work?

Enter the annual gross pension and the year retirement began. The calculator determines the taxable share and the tax-free portion. The tax-free amount is fixed in the first full year of retirement and remains constant.

Key Data and Facts

Taxable share: retirement start 2026: 84.0%. From 2058: 100%. Pension allowance fixed in the year following retirement. Basic allowance 2026: 12,348 euros.

Step-by-Step Guide

How to calculate pension taxation step by step: 1. Determine the annual gross pension: multiply your monthly gross pension by 12. The gross pension is stated in the DRV pension notice. 2. Determine the taxable portion: the portion depends on the year the pension started. Pension start in 2005 or earlier: 50 %. 2010: 60 %. 2015: 70 %. 2020: 80 %. 2026: 84.0%. From 2058: 100 %. 3. Calculate the pension allowance: annual gross pension x (100 % - taxable portion) = the tax-free part. This amount is fixed in the first full pension year and remains permanently the same. 4. Taxable income: gross pension minus the pension allowance minus income-related expenses (flat rate of 102 EUR) minus special expenses (health and long-term care insurance contributions). 5. Calculate the tax: if the taxable income is below the basic allowance of 12.348 EUR, no tax is due. Example: pension start in 2026, monthly gross pension of 1,800 EUR. Annual gross pension: 21,600 EUR. Taxable portion (2026): 84.0%. Taxable share: 21,600 x 84.0% = 18,036 EUR. Pension allowance: 21,600 x 16.5 % = 3,564 EUR (permanently fixed). Less income-related expenses (102 EUR), health/long-term care insurance contributions (approx. 2,300 EUR). Taxable income: approx. 15,634 EUR. Income tax: approx. 660 EUR/year (approx. 55 EUR/month). Future pension increases will be taxed in full.

Calculation Example

Pension start 2025, gross pension 1.800 EUR/month (21.600 EUR/year). Taxable portion 84.0%: 18.036 EUR taxable. Allowance: 3.564 EUR. After deductions, taxable income approx. 15.634 EUR. Income tax: approx. 660 EUR/year (55 EUR/month).

Sources · E-E-A-T

Official sources

Calculations are based on applicable German laws and official data:

Full methodology at Methodology.

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