How much of a German pension is tax-free in 2026?

The standard case behind the figure

A figure such as “€1,453 tax-free” only holds under assumptions. The mini calculator above and this page use the standard case: single, at least one child, statutory health insurance at the average extra rate of 2.9 %, no church tax, no other income, 2026 schedule. This is the calculation exactly at the limit:

The legal basis: taxable share under section 22 Income Tax Act, flat allowances under section 9a and section 10c, insurance contributions under section 10, schedule under section 32a. Health and care contributions are the biggest deduction, which is why the care surcharge for people without children (section 55 SGB XI) pushes the limit up to about €1,465.

Limit by year the pension starts

Between start years 2020 and 2035 the limit falls from €1,539 to €1,367. For earlier start years the table is too generous if the pension has gone up since: the tax-free part was frozen in euros in the year after the start, and every increase after that is fully taxed. The effect is shown on taxation of German pensions. For future start years the table only uses 2026 values; the basic allowance and contribution rates will have moved by then.

What happens above the limit

Crossing the limit does not mean a large bill. Only income above the basic allowance is taxed, and the schedule starts with low rates in its first band.

The German pension insurer does not withhold income tax, unlike an employer running payroll. If you are above the limit, the tax is assessed through your return and is not waived just because nobody asked for it. The pension tax calculator handles couples and other income.

Pension increases: over the limit overnight

The limit is fixed for the year; the pension is not. On 1 July 2026 the pension value rose by 4.24 %, so a pension of €1,420 became €1,480.21. A full year at that amount, for a pension starting in 2026, means €34 of tax, although the amount was below the limit before the adjustment. Pensioners cross the line this way without doing anything, and each later adjustment widens the gap. The current pension value is explained under pension increase 2026.

What moves the limit up or down

The health fund you choose moves the limit by only a few euros: higher contributions are deductible, but they also come out of the same pension. The big levers are marriage and other income. As little as €2,000 a year from rent or a company pension pulls the limit down noticeably, while joint assessment with a spouse who has no income almost doubles it.

Expats: a small German pension and income from elsewhere

If you spent only part of your career in Germany, your German pension may be well below the limit on its own. That does not settle the question. The limit on this page assumes the German statutory pension is your only income. Rent from a flat in your home country, investment income or a pension from another country can change the picture, and how they are treated depends on rules this page does not cover. Bring every source of income to the tax office or a tax adviser before concluding that nothing is due. If you keep working in Germany after the standard retirement age as an employee, wages up to €24,000 a year can be tax-free (section 3 no. 21); see earnings and the Aktivrente.