Which allowances can pensioners use?
What allowances can pensioners use?
Pensioners who submit a tax return can claim various allowances and lump sums to reduce their taxable income.
1. Pension allowance
- The pension allowance is set in the second full year of receiving the pension.
- In the year the pension begins and the second year, the pension is taxed at the taxable rate. The remaining amount forms the pension allowance, which remains tax-free for life.
- From the third year onwards, the pension is taxable after deducting the pension allowance and the 102 Euro income-related expenses allowance.
2. Allowance for civil servants and company pensioners
- The allowance applies to pensions and company pensions.
- For pensioners in 2025, the allowance is 13,2% of the payments, up to a maximum of 990 Euro, plus a supplement of 297 Euro.
- Including the income-related expenses allowance, up to 1.389 Euro remain tax-free.
3. Old-age relief amount
- Applies to pensioners with additional income.
- Those who turn 64 in 2024 receive 13,2%, up to a maximum of 627 Euro from 2025.
- Those who turn 64 in 2025 receive 12,8%, up to a maximum of 608 Euro from 2026.
4. Income-related expenses allowance
- Pensioners receive an income-related expenses allowance of 102 Euro per year.
- Higher income-related expenses (e.g. tax consultancy costs) can be claimed alternatively.
5. Special expenses
- Contributions to health and nursing care insurance can be declared as special expenses in the "Form Pensions and insurance".
- Donations can also be deducted as special expenses. If there are none, a lump sum of 36 Euro is deducted.
6. Extraordinary burdens
- Extraordinary burdens such as nursing home costs, household help, craftsmen's services, and medical expenses (e.g. for glasses, dental prostheses) can be deducted.
7. Mini job
- Pensioners over 65 who have a mini job receive this income tax-free.
Tip: If a pensioner's income with all allowances and lump sums is below the basic allowance of 12.096 Euro (2025), no taxes are due.
