SteuerGo FAQs

(2024) How is the statutory pension taxed?

Since the Retirement Income Act of 2005, state pensions have been taxed according to the principle of deferred taxation. This means that part of the pension is taxable, while the rest remains tax-free. The taxable portion depends on the year of retirement.

Taxation percentage:

• Retirement before 2005: 50% tax-free portion.
• Retirement 2005 to 2024: The taxable portion increases each year. For 2024, it is 83%.
• Retirement from 2025: The portion increases annually by 0.5 percentage points and reaches 100% from 2058.

Calculation of the pension allowance:

• In the first and second year of retirement, the pension is taxed with the fixed taxable portion.
• From the third year, the pension allowance remains constant and unchanged for life.
• Pension increases are fully taxable from the third year.

Income-related expenses:

• The tax office automatically deducts an income-related expenses allowance of 102 Euro.
• Higher expenses (e.g. tax advice or pension advice) can be claimed but must be proven.

Important: The pension allowance remains the same even if the pension is adjusted and refers to a fixed amount. Future pension increases must therefore be fully taxed.