Question 1

How much pension is tax-free in 2026?

Accepted Answer

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.

Question 2

What is the taxable share of the pension?

Accepted Answer

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.

Question 3

Why does my tax rise although my taxable share stays the same?

Accepted Answer

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.

Question 4

How much health and care insurance do pensioners pay in 2026?

Accepted Answer

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.

Question 5

Are contributions due on a company pension?

Accepted Answer

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.

Question 6

Do I have to file a tax return as a pensioner?

Accepted Answer

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.

Question 7

Is tax deducted from the pension automatically?

Accepted Answer

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.

Question 8

Does the result also apply to married couples?

Accepted Answer

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.

Guide: Net Pension Calculator

German Pension Taxation 2026: How Much Tax Do Pensioners Really Pay?

Do Pensioners Have to File a Tax Return in Germany? Rules, Limits and Tips

Health Insurance for Pensioners in Germany: Contributions, KVdR Rules and Voluntary Cover

Company Pensions in Germany: Health Insurance, Care and Tax Deductions

Taxable Share of the German Pension: The 2005–2058 Table Explained

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