What are the taxes that pensioners with a salary of 2000 euros have to pay? It depends on various factors. An overview.
Berlin/Munich – The taxable portion of the pension is increasing from year to year. For example, those who retired in 2005 only had to pay tax on half of their earnings. For people retiring in 2022, the figure is already 82 percent. When you retire in 2040, the entire pension will be subject to income tax.
Annuity: The amount of taxable amount depends on it
All retirees who retire earlier have a so-called pension allowance. In the above example with the start of retirement in 2022, that would be 18 percent of the income that is tax-free. However, it is important to note that the pension allowance always remains the same. It is a fixed euro amount that is determined at the time of retirement. This will not change in the event of future pension adjustments.
So does this mean that even pensioners with a small pension will have to pay taxes? Not necessarily. The basic allowance applies here, i.e. the amount that remains tax-free. In 2023, this amount is 10,908 euros for single people. The basic allowance protects pensioners with low incomes from having to pay taxes on them. This is to ensure the subsistence level.
With a pension of 2000 euros, the proportion to be taxed is also comparatively high. © IMAGO/Michael Gstettenbauer
Pension: This is how high the taxable portion is in the case of
In the following table you can read how high the taxable portion would be depending on the year of retirement for a pension amount of 2000 euros. In order to simplify the calculation, additional charges such as contributions to long-term care and health insurance were not included.
For example, if someone retired in 2020 and receives 24,000 euros annually, they would have to pay tax on 19,200 euros of it. After deducting the basic allowance of 10,908 euros, 2023,8 euros remained in 292 on which income tax would have to be paid. The earlier someone retires, the greater the likelihood that they will have to pay little to no tax on the pension. (ph)
