FeaturedGerman Pension Taxation 2026: How Much Tax Do Pensioners Really Pay?
Taxable share, pension allowance, health and care insurance: the complete guide from gross to net pension — with worked examples for 2026.
2026-09-249 min read
Net Pension Calculator 2026
How much of your German state pension do you keep? Calculate health and care insurance, pension taxation and your monthly net pension — based on the taxable share of your pension start year.
100% freeNo data stored2026 tax tariff & rates
Pension & start year
€
Other income
€
€
€
%
Health & care insurance, church tax
Yes, at least one child
Your net pension
€1,536.03
per month · €18,432.40 per year
Gross
€1,800.00
Total deductions
− €263.97 (14.7 %)
Taxable share
84.0 %
Pension allowance
€3,456
per year · estimated, fixed for life 2027
Tax per month
€41.67
€500 per year
Tax-free up to €1,453
For your start year, a gross pension up to this monthly amount stays free of income tax (without other income).
Tax return probably required
Your total income exceeds the basic allowance of €12,348. You then have to file a tax return — even if little or no tax is due in the end.
From gross to net
Health and care insurance per month
| Health insurance on the pension (8.75 %) | €157.50 |
| Care insurance on the pension (3.6 %) | €64.80 |
| Total contributions | €222.30 |
How your pension is taxed
| Statutory pension per year | €21,600.00 |
| − Pension allowance | €3,456.00 |
| = Taxable part of the pension | €18,144.00 |
| − Flat-rate expense allowance | €102.00 |
| = Total income | €18,042.00 |
| − Health and care insurance (special expenses) | €2,667.60 |
| − Flat-rate special expenses | €36.00 |
| = Taxable income | €15,338.00 |
| Income tax | €500.00 |
| Solidarity surcharge | €0.00 |
| Taxes per year | €500.00 |
Tax-free pension by start year
The later your pension starts, the higher the taxable share — and the lower the gross pension that stays free of income tax. Calculated with your health and care insurance settings, without other income.
| Start year | Taxable share | Tax-free up to (gross/month) | Tax on your pension/month |
|---|---|---|---|
| ≤ 2005 | 50.0 % | €1,829 | €0.00 |
| 2010 | 60.0 % | €1,681 | €11.00 |
| 2015 | 70.0 % | €1,563 | €24.83 |
| 2020 | 80.0 % | €1,454 | €41.33 |
| 2021 | 81.0 % | €1,446 | €42.75 |
| 2022 | 82.0 % | €1,444 | €43.08 |
| 2023 | 82.5 % | €1,449 | €42.25 |
| 2024 | 83.0 % | €1,453 | €41.58 |
| 2025 | 83.5 % | €1,456 | €41.08 |
| 2026your year | 84.0 % | €1,453 | €41.67 |
| 2027 | 84.5 % | €1,443 | €43.42 |
| 2028 | 85.0 % | €1,433 | €45.17 |
| 2029 | 85.5 % | €1,423 | €47.00 |
| 2030 | 86.0 % | €1,413 | €48.83 |
| 2035 | 88.5 % | €1,367 | €58.17 |
| 2040 | 91.0 % | €1,323 | €67.92 |
Assumptions & notes
- Tax year 2026, individual assessment, current monthly pension projected over 12 months. Married couples filing jointly often pay less.
- The pension allowance is fixed in the year after the pension starts. Without input, the calculator estimates it by rolling your current pension back with the actual pension increases (West values until 2023). The exact amount is on your tax assessment.
- The company pension is treated as fully taxable (direct insurance, pension fund). Direct commitments by the employer are taxed like wages with separate allowances — not modelled here.
- Children under 25 (which would lower care contributions further), the old-age relief amount and other special expenses are not included. Non-binding estimate, not tax advice.
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Guide: Pensions & Tax
Taxable share, allowance, health insurance and tax returns explained
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It depends on the year your pension started. Someone retiring in 2026 without other income pays no income tax as a compulsorily insured pensioner with children up to a gross pension of around €1,450 per month. Reason: 16% of the pension stays tax-free as a pension allowance, plus the €102 flat-rate expense allowance, the €36 flat-rate special expenses and the deductible health and care insurance contributions. Only what exceeds the basic allowance of €12,348 after that is taxed. The table in the calculator shows the threshold for every start year.
The taxable share determines what percentage of your statutory pension is taxable. It depends on the year your pension started (§ 22 German Income Tax Act): in 2005 it was 50%, until 2020 it rose by 2 points a year to 80%. Since the Growth Opportunities Act it rises by only 0.5 points a year from 2023 — 84% in 2026, 86% in 2030. Pensions are fully taxable only for pensions starting in 2058.
Because the tax-free part is fixed as a euro amount — in the year after your pension started. All later pension increases are therefore 100% taxable. Someone who retired in 2020 with €1,450 now receives around €1,800 thanks to adjustments — but the allowance has stayed the same. That is why older pension cohorts often pay almost as much tax as new pensioners despite a lower taxable share.
Compulsorily insured pensioners pay 7.3% health insurance plus half of their fund's additional rate — the pension insurance covers the other half. At the average additional rate of 2.9% that makes 8.75%. Pensioners pay the care insurance alone: 3.6% with children, 4.2% without children. For a €1,800 pension that is around €222 per month in total.
Yes. As a compulsorily insured pensioner you pay the full health insurance rate of 14.6% plus the full additional rate on your company pension — but only on the part above the allowance of €197.75 per month (2026). In care insurance this amount is only a threshold: if the company pension exceeds it, the entire amount is subject to contributions. For tax purposes, a company pension from direct insurance or a pension fund is usually fully taxable.
You are obliged to file if your total income exceeds the basic allowance of €12,348 (2026). What counts is not the gross pension but the taxable part after the pension allowance and expenses, plus other income. Health and care insurance are deducted only afterwards — so you may have to file even though no tax is due in the end. The calculator shows whether this applies to you.
No. The pension insurance withholds health and care insurance directly, but not income tax. It is assessed via the tax return and paid afterwards; with regular tax liability the tax office sets quarterly prepayments. It is best to set aside the monthly tax amount shown by the calculator.
The calculator assumes individual assessment. With joint assessment, both partners' income is added up and taxed under the splitting tariff. If one partner has a much lower pension, the joint tax usually drops noticeably. For a first estimate you can calculate both pensions separately; our income tax calculator shows the exact splitting effect.