Income tax on a German pension: the annual bill
Enter your gross pension, the year it started and any other income: the calculator works out taxable income and German income tax for a full year.
Worked through by Radif Partners · Editorial policy · How we calculate
Tax a year
€862
€72 a month, taxable income €17,058
| Gross pension | €2,000 |
|---|---|
| Health insurance | −€175.00 |
| Care insurance | −€72.00 |
| Tax (monthly share) | −€71.83 |
| Net | €1,681.17 |
| Taxable share | 84.0 % |
Step-by-step calculation
- Health insurance: (14.6% + 2.90%) ÷ 2 = 8.75 % of the pension; the pension insurer pays the other half (section 249a SGB V).
- Long-term care insurance: 3.6 %, paid by you alone (section 59 SGB XI).
- Taxable: 84.0 % of the annual pension €24,000 (pension start 2026, section 22 EStG) = €20,160.
- Minus €102 expenses allowance, €36 special expenses and €2,964 health and care contributions: taxable income €17,058; basic allowance €12,348.
- Income tax €862, solidarity surcharge €0.00, church tax €0.00 a year. No tax is withheld from the pension: it is due with your tax return.
Estimate under SGB VI and the Income Tax Act as of October 2026, not advice. Only your pension decision letter is binding. How we calculate
A German statutory pension is subject to income tax, but nothing is withheld at source: the pension insurer pays the gross amount minus social contributions, and the tax office assesses tax for the whole year once you file a return. The taxable part is the share for the year your pension started, 84 % of the annual pension for a 2026 start. From that come €102 for expenses, €36 for special expenses (double for couples) and the health and care contributions you paid yourself. Tax starts once the rest exceeds the €12,348 basic allowance (Grundfreibetrag). In the calculator, a single person with a €2,000 monthly pension pays €862 a year; at €3,000 it is €3,025. Add €6,000 of rental income a year and tax on the €2,000 pension rises to €2,343. A married couple living on that one pension pays €0 under joint assessment.
Tax on a full year of pension
The calculator follows the logic of a German tax assessment. It takes twelve monthly payments, applies the taxable share under section 22 Income Tax Act, deducts the flat expenses allowance (section 9a), the flat special expenses allowance (section 10c) and your health and care contributions (section 10), then applies the 2026 schedule (section 32a). Married couples get the splitting schedule. The output is annual income tax, solidarity surcharge (section 3 and section 4 Solidarity Surcharge Act) and church tax.
| Gross pension a month | Taxable income a year | Income tax a year | per month |
|---|---|---|---|
| €1,500 | €12,759 | €59 | €4.92 |
| €2,000 | €17,058 | €862 | €71.83 |
| €2,500 | €21,357 | €1,909 | €159.08 |
| €3,000 | €25,656 | €3,025 | €252.08 |
In the standard case a pension starting in 2026 stays tax-free up to about €1,453 gross a month; the tax-free pension limit page explains how that figure comes about.
One pension, five situations
| Case on a €2,000 pension | Taxable income | Tax a year |
|---|---|---|
| Single, pension only | €17,058 | €862 |
| plus €6,000 rent a year | €23,058 | €2,343 |
| with 9 % church tax | €17,058 | €940 |
| married, spouse without income | €17,022 | €0 |
| married, spouse with €18,000 income | €35,022 | €1,932 |
| pension starting only in 2030 | €17,538 | €972 |
A pension starting in 2030 is 86 % taxable rather than 84 %. Half a point per year looks small, yet over a whole retirement it moves real money to the tax office. All percentages up to 2058 are on the page on taxation of German pensions.
The frozen allowance
With a 2026 start, 16 % of the pension stays tax-free, about €3,840 a year on €2,000 a month. That amount is fixed in euros in the year after the pension starts. Every later increase is then fully taxable, so the taxable part grows year by year beyond the initial 84 %. For pensions already in payment for some years, the calculator is only precise if you enter the fixed amount from your own assessment. Where one pension follows another, such as a widow’s pension after the deceased’s own pension, or a retirement pension after a disability pension, a special rule decides which start year counts.
What is left out
Nothing is withheld at source, and the calculator does not prepare a tax return. Beyond the flat allowances and social contributions named above, it takes no deductions you would claim yourself in a return. Other income is expected after its own allowances and expenses. If you also draw a pension from your home country while living in Germany, its tax treatment in Germany is beyond this tool; ask the tax office before you rely on a figure. The gross to net calculator shows the monthly amount after every deduction, and health insurance for pensioners explains the contributions. For your own case, ask a tax adviser.