Do pensioners have to file a tax return?
Many retirees assume that retirement also means the end of tax returns. Often that is not true. Since Germany switched to deferred taxation, a growing share of the pension is taxable, and with every pension increase the number of pensioners who have to file a return rises.
The threshold: total income
Pensioners without wages must file a tax return if their total income exceeds the basic tax-free allowance. In 2026 that is €12,348 for single people and €24,696 for married couples filing jointly.
What matters is what counts as total income. It is not the gross pension, but the taxable part after deducting the pension allowance and the €102 flat-rate expense allowance, plus all other income such as a company pension or rent. Health and care insurance contributions are only deducted afterwards.
That is the trap: someone with a €1,300 gross pension that started in 2024 stays just below the tax threshold and pays no income tax in the end. But at around €13,000, their total income is above the basic allowance — so a tax return is still mandatory. The net pension calculator shows both separately: the tax and the filing obligation.
How does the tax office know about the pension?
The pension insurance, pension funds and pension schemes report the amounts paid out electronically to the tax authorities every year. The tax office therefore knows your pension even if you do not file a return. Anyone who fails to meet the obligation will sooner or later receive a demand — possibly for several years retroactively, with a late-filing surcharge and interest.
Deadlines
Anyone obliged to file must generally submit the 2025 return by 31 July 2026. With a tax adviser or an income tax assistance association the deadline is extended considerably. Anyone not obliged can file voluntarily and has four years to do so — worthwhile if tax on investment income or tradespeople's services can be reclaimed.
What reduces your tax
Pensioners can deduct considerably more than the flat-rate allowances. The most important items:
- Health and care insurance: Contributions are deductible in full, including additional contributions and contributions on a company pension.
- Household services and tradespeople: 20% of the labour costs is deducted directly from the tax, up to €1,200 a year for tradespeople. This also applies to care home costs insofar as they relate to household services.
- Medical costs: Co-payments, glasses, hearing aids or dentures are extraordinary burdens once they exceed the reasonable burden.
- Donations and church tax: They replace the €36 flat-rate special expenses allowance if they are higher.
- Income-related expenses: Costs for pension advice or trade union fees may exceed the €102 flat-rate allowance.
Plan for prepayments
If the first tax return results in a back payment, the tax office usually also sets quarterly prepayments for the future. In the first year, the back payment and prepayments therefore come together. It is best to set aside the monthly tax amount shown by the calculator from the start.
Conclusion
Whether you have to file a tax return depends on your total income — not your gross pension, and not on whether any tax is due in the end. Check your case in the net pension calculator. How much you can reclaim with additional deductions is estimated by the tax refund calculator.
Note: as of 24 September 2026, not tax advice.