SteuerGo FAQs

(2023) When are pensioners required to submit a tax return?

A pensioner is required to submit a tax return 2023 if their total income exceeds the annual basic allowance. In 2023, the basic allowance is 10,908 Euro for single persons and 21,816 Euro for married couples.

Taxable income for pensioners that must be declared includes private and state pensions (Form R), as well as rental and capital income (Form V and Form KAP) and much more.

Not every Euro of the state pension is part of a pensioner's taxable income. This means that someone receiving a state pension of 1,500 Euro per month does not have to pay tax on the entire annual sum of 18,000 Euro. The amount of the taxable pension depends on the year the employee retired. The taxable portion is 50% of the pension amount for all pensioners from 2004 and for those who retired in 2005, regardless of age.

For pensioners who start receiving a pension in 2023, the taxable portion is 82.5% of the pension amount.

The taxable portion is applied only in the year the pension begins and in the second year of receiving the pension. The remaining amount in the second year is the personal pension allowance, which remains tax-free for life. From the third year onwards, the pension is fully taxable after deducting the personal pension allowance and the standard allowance for income-related expenses of 102 Euro. The constant pension allowance means that pension increases from the third year of receiving the pension are fully taxable.

Example: For Manfred Mustermann, who retired in 2005, the taxable pension is 50 percent. Like all pensioners who retired by 2005, he receives an allowance of 50 percent. This is not taxable and remains unchanged for life.

For Mr Mustermann: If he received a pension of 30,000 Euro in 2005, his allowance is therefore 15,000 Euro. This annual allowance remains constant until the end of his life. The married pensioner Mustermann and his wife have no other income. Therefore, they do not have to submit a tax return. Together, their income is below the basic allowance of 21,816 Euro (2023). If Max Mustermann were single, it would be different. With a taxable annual pension of 15,000 Euro, he would be above the basic allowance of 10,908 Euro (2023) and would therefore have to submit a tax return. If both spouses are above the basic allowance, they must each submit a separate form.

Pensioners who have to submit a tax return should also ensure that they claim possible income-related expenses.