In 2021, pension contributions are deductible up to a total of 25,787 Euro for single persons and 51,574 Euro for married couples. However, these contributions only have a tax-reducing effect of 92%, i.e. a maximum of 23,724 Euro or 47,448 Euro.
The deduction rate increases by 2 percentage points each year until 2025.
Note: The Federal Fiscal Court considers the statutory transitional regulations in connection with pension taxation and the deduction of pension expenses to be constitutional (BFH rulings of 19.05.2021, X R 33/19 and X R 20/21). However, it has pointed out that this does not apply to future pensioners. There could be a risk of double taxation.
The Federal Ministry of Finance has announced that it will bring forward the full deductibility of pension contributions during the working phase, which was planned for 2025 (as of 03.06.2021, source: BMF online). Therefore, it is conceivable that the above amounts may change slightly in the near future, i.e. that the percentage-limited deduction of pension expenses will be increased. Further developments must be carefully monitored.
