Despite the pension increase: Thousands of retirees will no longer have to pay taxes in 2022
Created: 05/22/2022, 08:25
By: Patricia Huber
Due to the pension increase, many seniors were concerned that they would suddenly have to pay taxes.
But the opposite is the case.
Munich/Berlin - As of July 1, pensioners in the old federal states can look forward to 5.35 percent more pensions and in the new federal states there are even 6.12 percent more for retirees.
With the current inflation rate of 7.4 percent (as of April 2022), this is unfortunately just a drop in the bucket for many.
In addition, the increase will make some pensioners liable for tax.
Pension: Basic allowance relieves thousands of retirees from the pension obligation
But there is also good news.
Because there are not that many pensioners who will have to pay taxes in the future.
Some even avoid paying taxes.
This is ensured by the tax relief law, which was introduced by the government on March 16, 2022.
According to this, the basic tax allowance increases by 603 euros to a total of 10,347 euros - and even retrospectively to January 1, 2022. In the previous year, the basic tax allowance was 9,744 euros.
As a result of this increase, significantly fewer pensioners than expected will be subject to tax.
This was also confirmed by the Federal Ministry of Finance when asked by
meine-Vorsorge.de
.
The ministry's statement said that the combination of the pension value increase on July 1 and the planned increase in the basic personal allowance would mean that "around 80,000 taxpayers with pension income would no longer be taxed and fewer than 5,000 taxpayers with pension income would be taxed for the first time".
This means that around 80,000 retirees will not have to pay taxes on their pensions in 2022, although they had to in 2021.
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Pension: how much must be taxed?
Important: The percentage of the pension that has to be taxed depends on the year in which you retire.
For example, if you retire in 2020, you will have to pay tax on 80 percent of your pension.
The tax rate then increases by one percent each year.
So anyone who retires in 2040 will have to pay tax on their entire pension.
If the taxable part of the gross annual pension exceeds the above-mentioned basic allowance, the tax becomes due - or at least a tax return is due.
Because pensioners can also deduct some of the tax and save a lot of money.
Among other things, costs for household-related employment, for example for a household help, or the costs for craftsmen can be claimed against tax.
