Pensioners and taxes: This applies now
Tax liability in retirement: when pensioners have to submit a tax return
Pensions from the statutory pension insurance scheme have been subject to gradual taxation since 2005. The so-called taxation rate depends on the year in which the pension began and remains the same in the long term. So anyone who retired in 2005 or earlier pays tax on 50% of their pension payments. For new pensioners from 2006 onwards, this percentage increases annually – by the time they retire in 2024, it will already be 83%.
Important to know: Only the pension allowance remains permanently tax-free. All future pension increases are fully taxable – even if personal requirements do not change.
But when exactly does a tax return have to be submitted?
The decisive factor is whether the taxable income is above the basic tax-free allowance. For 2024, this is €11,784 for single people and €23,568 for married couples. If this amount is exceeded, there is generally an obligation to declare – even if there is no threat of additional payment on balance.
The following amounts must be taken into account for the audit:
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the taxable part of the pension (less pension allowance and € 102 lump sum for income-related expenses),
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any other income such as rental income or company pensions,
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less special expenses such as contributions to health and long-term care insurance,
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extraordinary expenses, such as high medical expenses or donations.
Incidentally, capital gains such as interest or dividends do not have to be declared if they have already been taxed by the bank with capital gains tax (flat-rate withholding tax) and remain below the saver’s allowance (€1,000 / €2,000 for married couples).
Additional income in old age – what applies from a tax perspective?
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Mini-jobs are taxed at a flat rate and do not trigger a declaration obligation.
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Regular employment, on the other hand, does: If you receive a taxable salary in addition to your pension and your other income (after deduction of €102) exceeds €410 per year, you must submit a tax return.
Tip: A simplified tax return is available to pensioners – it saves time and nerves. If you are unsure, you should check (or have someone check) every year whether a declaration is necessary – especially after pension increases.
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