Pension Tax Calculator Taxable Share & Pension Allowance.

Since the 2005 pension reform, the German statutory pension has gradually become fully taxable. What matters is not the current year, but the year you start receiving your pension: anyone retiring in 2026 pays tax on 84% of their gross pension — the remainder, 16%, remains tax-free for life as a pension allowance.

It is important to understand: the pension allowance is calculated only ONCE and then fixed as a set euro amount. If your pension later rises through regular pension adjustments, the allowance does not grow with it — meaning the taxable share of your pension increases over time.

Without individual proof, the income-related expenses allowance for pensions of €102 per year is deducted from the taxable pension share (§ 9a sentence 1 no. 3 German Income Tax Act). In addition, the general special expenses allowance of €36 (single) applies. Health and long-term care insurance contributions can further reduce the tax burden as additional special expenses — this calculator does not take them into account for simplicity.

Note: This calculation is for non-binding information purposes only and does not replace professional tax advice. For binding advice, please contact a tax advisor or the tax office.