Status: 21.09.2023, 18:00 p.m.
By: Patricia Huber
More and more pensioners are slipping into tax liability. The amount of the burden depends on the year of retirement. But the basic allowance also plays a role.
Munich – Finally retirement. Peace at last. Finally, no more annoying tax returns – you might think. But in many cases, this is a fallacy. This is because more and more senior citizens are slipping into tax liability. The amount of the tax burden depends on the year of retirement. Until 2039, the percentage will gradually increase year by year. From 2040, new pensioners will have to pay tax on their entire pension.
Pensions and taxes: who has to pay how much
You can see exactly how pension taxation is developing in our table:
Basic allowance for pensions: This is how much is tax-free
However, as for employees, an allowance also applies to pension recipients. The basic tax allowance is intended to ensure that the subsistence level remains tax-free for everyone. This year, the basic allowance was increased again from 10,347 euros to 10,908 euros – an increase of 561 euros. This means that retirees with a taxable annual pension of 10,908 euros do not yet have to pay taxes. It doesn't matter what year they retired.
In addition, the basic allowance is to be raised again in 2024. According to the Federal Ministry of Finance, a further increase of 696 euros to a total of 11,604 euros is currently planned.
When you have to pay taxes in retirement depends on various factors. (Symbolic photo) © IMAGO/Michael Gstettenbauer
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Paying tax on pensions: this is how it works
But what about the basic allowance in concrete terms? We have calculated an example:
Susanne M. retired in 2022 and receives a monthly pension of 1000 euros. Due to the year of her retirement, she has to pay tax on 82 percent of her pension. This means that she has to pay tax on 12 euros of her annual pension of 000,9840 euros. Since this value is below the basic allowance, she does not have to pay taxes on her pension for 2023, unless she has any other income.