Taxable share of the German pension for every start year
Updated:
How much of your German state pension is taxable depends on the year your pension starts. The table shows the taxable share and the tax-free part for every pension start from 2005 – and below it, from what gross pension any tax is due for a pension starting this year.
| Pension starts | Taxable share | Tax-free part |
|---|---|---|
| Pensions starting until 2026 | ||
| until 2005 | 50% | 50% |
| 2006 | 52% | 48% |
| 2007 | 54% | 46% |
| 2008 | 56% | 44% |
| 2009 | 58% | 42% |
| 2010 | 60% | 40% |
| 2011 | 62% | 38% |
| 2012 | 64% | 36% |
| 2013 | 66% | 34% |
| 2014 | 68% | 32% |
| 2015 | 70% | 30% |
| 2016 | 72% | 28% |
| 2017 | 74% | 26% |
| 2018 | 76% | 24% |
| 2019 | 78% | 22% |
| 2020 | 80% | 20% |
| 2021 | 81% | 19% |
| 2022 | 82% | 18% |
| 2023 | 82.5% | 17.5% |
| 2024 | 83% | 17% |
| 2025 | 83.5% | 16.5% |
| 2026 | 84% | 16% |
| From 2027: rising by 0.5 percentage points a year under current law | ||
| 2027 | 84.5% | 15.5% |
| 2028 | 85% | 15% |
| 2029 | 85.5% | 14.5% |
| 2030 | 86% | 14% |
| 2031 | 86.5% | 13.5% |
| 2032 | 87% | 13% |
| 2033 | 87.5% | 12.5% |
| 2034 | 88% | 12% |
| 2035 | 88.5% | 11.5% |
| 2036 | 89% | 11% |
| 2037 | 89.5% | 10.5% |
| 2038 | 90% | 10% |
| 2039 | 90.5% | 9.5% |
| 2040 | 91% | 9% |
| 2041 | 91.5% | 8.5% |
| 2042 | 92% | 8% |
| 2043 | 92.5% | 7.5% |
| 2044 | 93% | 7% |
| 2045 | 93.5% | 6.5% |
| 2046 | 94% | 6% |
| 2047 | 94.5% | 5.5% |
| 2048 | 95% | 5% |
| 2049 | 95.5% | 4.5% |
| 2050 | 96% | 4% |
| 2051 | 96.5% | 3.5% |
| 2052 | 97% | 3% |
| 2053 | 97.5% | 2.5% |
| 2054 | 98% | 2% |
| 2055 | 98.5% | 1.5% |
| 2056 | 99% | 1% |
| 2057 | 99.5% | 0.5% |
| 2058 | 100% | 0% |
- The tax-free part is fixed as a euro amount in the year after the pension starts, based on that year's pension (the Rentenfreibetrag). Later pension increases are fully taxable.
- What counts is the year the pension is first paid – not the year of a pension increase or of the tax return.
From what pension do you pay tax in 2026?
Same assumptions as the net pension table: pension starting in 2026, no other income, statutory health insurance with the average additional contribution of 2.9%, no church tax. People who have drawn a pension for longer often pay tax sooner: the allowance stays the same while the pension rises.
| Household | Tax from |
|---|---|
| Single, no children | €1,466 |
| Single, with children | €1,454 |
| Married, partner without income | €2,895 |
How the tax-free allowance is set
In the year after your pension starts, the tax office works out the tax-free part from that year's pension and fixes it as a euro amount (the Rentenfreibetrag). Example for a pension starting in 2026: with a pension of €1,500 a month, 16% of the roughly €18,000 a year stays tax-free. That amount never changes, so every later pension increase is fully taxable.
Why the share has risen more slowly since 2023
Until 2020 the taxable share rose by 2 percentage points a year, in 2021 and 2022 by one point. The Growth Opportunities Act (Wachstumschancengesetz) of 2024 halved the rise to 0.5 points a year, retroactively for pensions starting from 2023. Full taxation is therefore only reached for pensions starting in 2058 instead of 2040. In return, pension contributions have been fully deductible since 2023.
Taxable does not mean you pay tax
Income tax is only due once your taxable income exceeds the basic allowance. Before that, the tax-free part of the pension, the €102 expense allowance, €36 of special expenses and your health and care insurance contributions are deducted. How much of your pension is left after all deductions is shown in the net pension table; the net pension calculator works out your own case.
Legal basis and sources
Frequently asked questions
What percentage of my German pension is taxable?
That depends on the year your pension starts. For a pension starting in 2026, 84% is taxable; for a start in 2020 it is 80%, and for 2005 or earlier 50%. Find your year in the table, for example 2015.
From what pension do you have to pay tax in Germany?
For a pension starting in 2026 with no other income, income tax is due from a gross pension of about €1,466 a month (single, no children), €1,454 (single, with children) and €2,895 (married, partner without income). See From what pension do you pay tax?
When will German pensions be taxed at 100%?
For pensions starting in 2058. Since the Growth Opportunities Act, the taxable share rises by only 0.5 percentage points a year; before, full taxation was planned for 2040.
Does the tax-free part change when my pension goes up?
No. The tax-free allowance is fixed as a euro amount in the year after the pension starts. Later increases are fully taxable. That is why many pensioners start paying tax after a few years even though they paid none when they retired.
Which share applies if I first received a reduced earning capacity pension?
If an old-age pension directly follows a reduced earning capacity pension (Erwerbsminderungsrente), the start year of the first pension generally applies, adjusted for the years it was drawn. The calculator does not model this special rule; a tax adviser or a Lohnsteuerhilfeverein can help.
Does the taxable share also apply to company and Riester pensions?
No. The table applies to the statutory pension and other basic pensions (such as Rürup). Company pensions and Riester pensions are usually taxed in full, private annuities only with their income portion (Ertragsanteil).