SteuerGo

 

The entire world of tax knowledge

SteuerGo FAQs

 

AI power for your tax:

With IntelliScan KI beta
for effortless refund!

No more tax stress!
Learn how to use IntelliScan to complete your tax return faster and more efficiently. Simply upload your documents – our AI recognises and processes all the important information for you.

 


What is a statutory life annuity?

A statutory annuity is a fixed payment linked to a person's lifetime. This includes old-age, disability, and survivor pensions from the statutory pension insurance, the agricultural pension fund, or professional pension schemes. These pensions are only partially taxed, with the taxable portion depending on the year the pension begins.

Taxable portion and tax-free pension amount

If you retire in 2025, the taxable portion of your pension will be 83,5%. The tax-free part of the pension is determined in the year following the start of the pension and remains unchanged for the entire duration of the pension. However, pension increases due to adjustments are fully taxed.

Notification to the tax office

Pensioners can request a “notification for submission to the tax office” from the statutory pension insurance. This notification contains the relevant data for the tax return and is automatically sent in subsequent years. An additional entry of the taxable portion in the tax return is not required.

Types of annuities

Annuities include in particular:

  • Old-age pensions
  • Disability pensions
  • Occupational disability pensions
  • Widow's/widower's pensions
  • Orphan's pensions
  • Parental pensions

One-off payments such as death benefits or settlements of small pensions must also be declared.

Special regulations for victims of the Nazi regime

If periods of persecution under § 1 of the Federal Compensation Act (BEG) have been taken into account in the pension calculation, inform the tax office informally. This also applies to survivor's pensions if the deceased was recognised as a victim. The tax office will check whether these pensions are tax-free.

What is a statutory life annuity?


How is the statutory pension taxed?

Since the Pension 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 2025: The taxable portion increases each year. For 2025, it is 83.5%.
  • Retirement from 2026: 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 at the set taxable rate.
  • From the third year, the pension allowance remains constant and unchanged for life.
  • Pension increases are fully taxable from the third year.
Beispiel

Hans Müller retired in 2009 and received a pension of 12.000 Euro in 2025. With a taxable portion of 58%, 6.960 Euro are taxable. His allowance is 5.040 Euro. As long as his income is below the basic allowance of 12.096 Euro (2025), he does not have to submit a tax return.

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.
Beispiel für 2024

If Mr Müller only retires in 2025 and receives an annual pension of 15.000 Euro, 12.525 Euro would be taxable (83.5%). Since he exceeds the basic allowance, he would have to submit a tax return.

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.

 

How is the statutory pension taxed?


Was bedeutet die Öffnungsklausel?

Was bedeutet die Öffnungsklausel?

Die Öffnungsklausel bezieht sich auf die nachgelagerte Besteuerung und soll eine ungerechte Übersteuerung vermeiden. Selbständige, die über mehrere Jahre freiwillig höhere Beiträge an ein berufsständisches Versorgungswerk gezahlt haben, können von der Öffnungsklausel profitieren, wenn ihre Beiträge über der Beitragsbemessungsgrenze der gesetzlichen Rentenversicherung lagen.

Beitragsbemessungsgrenze und freiwillige Zahlungen

Die Beitragsbemessungsgrenze wird jährlich neu berechnet und legt fest, bis zu welchem Einkommen Rentenversicherungsbeiträge erhoben werden. Für Einkommen über dieser Grenze sind normalerweise keine Beiträge fällig, es sei denn, man leistet freiwillige Zahlungen – beispielsweise als Selbständiger.

Steuerliche Problematik

Ein Selbständiger hat freiwillig höhere Beiträge aus seinem versteuerten Einkommen gezahlt und erhält im Ruhestand eine höhere Rente. Ohne Öffnungsklausel müsste diese Rente mit dem vollen Besteuerungsanteil (im Jahr 2025: 83,5 %) versteuert werden, was zu einer zu hohen Besteuerung führen könnte.

Nutzung der Öffnungsklausel

Um dies zu vermeiden, kann der Rentner die Rente in einen freiwilligen und einen gesetzlichen Teil aufteilen lassen, sofern er mindestens zehn Jahre vor dem 31.12.2004 die höheren Beiträge gezahlt hat. Der Anteil der Rente, der auf den erhöhten Beiträgen basiert, wird dann mit dem günstigeren Ertragsanteil besteuert.

Beispiel

Ein Rentner bezieht seit seinem 65. Lebensjahr eine Rente von 1.500 Euro monatlich. Wenn er nachweisen kann, dass 30 % der Rente auf erhöhten Beiträgen beruhen, wird diese Aufteilung vorgenommen:

  • 70 % der Rente (1.050 Euro) werden normal besteuert.
  • 30 % der Rente (450 Euro) werden mit einem Ertragsanteil von 18 % besteuert.

Ergebnis: Es müssen nur 8.280 Euro versteuert werden, anstatt 10.440 Euro ohne Öffnungsklausel.

Berechnung des Ertragsanteils

Der Ertragsanteil richtet sich nach dem Alter des Rentners zu Beginn der Rentenzahlung:

  • 64 Jahre: 19 %
  • 65-66 Jahre: 18 %
  • 67 Jahre: 17 %
Tipp zur Nutzung der Öffnungsklausel

Betroffene sollten beim Rentenantrag sicherstellen, dass der Teil der Rente, der auf den erhöhten Beiträgen beruht, korrekt aufgeteilt wird. Die Bescheinigung des Rentenversicherungsträgers enthält alle notwendigen Informationen für das Finanzamt.

Was bedeutet die Öffnungsklausel?


What income-related expenses can I claim as a pensioner?

Even as a pensioner, you can claim expenses related to your pension as income-related expenses in your tax return. If your income-related expenses total less than 102 Euro, it is not worth entering them. The tax office automatically applies an income-related expenses allowance of 102 Euro, which is immediately deducted from your income. This allowance is applied jointly for all pensions and all income that must be declared under other income. It is an annual amount that is not reduced, even if the conditions did not apply for the entire year or if there was no income for the whole year. The income-related expenses allowance is personal and is available to each spouse separately as soon as they have the relevant income.

Tip: If you have higher expenses exceeding the allowance of 102 Euro, it is definitely worth entering them. However, you should also have the evidence ready and enclose it with your tax return. If you have expenses for a tax advisor, the tax office will only recognise the costs as income-related expenses if they are related to your pension. Therefore, ask your tax advisor to specify separately in their invoice the part that directly relates to your pension.

You can claim the following as income-related expenses:

  • pension advisor,
  • lawyer in pension disputes,
  • tax advisor (only for form R), and also
  • costs related to applying for a pension (travel expenses, office supplies, postage, telephone costs)
  • court fees if the case concerns your pension
  • union fees you pay as a pensioner
  • flat-rate account maintenance fee of 16 Euro per year
Tip

If you are unsure whether the tax office will recognise a particular expense, simply declare it and enclose the evidence. The tax officer will decide.

What income-related expenses can I claim as a pensioner?


What does the Retirement Income Act 2005 regulate?

The Retirement Income Act of 2005 regulates the taxation of pensions and affects both pensioners who retired in 2005 and future pensioners. The tax burden for new pensioners increases each year, but there are also benefits for employees through tax-advantaged pension schemes.

Tax-advantaged pension schemes

In addition to the statutory pension insurance, private pension insurance is also recognised as a pension scheme, particularly the basic pension or Rürup pension. Contributions to private pension insurance are only tax-advantaged if they provide a lifelong pension. The insured person must be at least 60 years old at the start of the pension. For contracts from 2012, pension payments may not begin before the age of 62. This ensures that the products are used exclusively for retirement provision.

Taxation of pensions

Since 2005, 50% of retirement income has been taxed. Between 2006 and 2020, the taxable portion of pensions increased annually by two percentage points, and from 2021 by only one percentage point per year. From 2023, however, the taxable portion for new pensioners will only increase by half a percentage point annually. Pensions starting from 2025 will have a taxable portion of 83,5%. The full taxable portion of 100% will be reached for the first time in 2058.

Ruling on double taxation

In May 2021, the Federal Fiscal Court (BFH) ruled that double taxation of pensions is only possible in individual cases. The BFH considers the basic system of pension taxation to be lawful, including the limited deduction of pension expenses and the partial tax exemption of pensions. The Federal Constitutional Court (BVerfG) dismissed the constitutional complaints against the BFH rulings in November 2023, as they were not sufficiently substantiated.

What does this mean for those affected?

The Federal Ministry of Finance has ordered that tax assessments regarding "pension taxation" are no longer to be issued provisionally (BMF letter dated 10.03.2025, IV D 1 - S 0338/00083/001/081 and IV C 4 - S 2255/00236/011/001).

However: The BFH is currently re-examining possible double or excessive taxation of pensions (Ref. X R 9/24). Pensioners should therefore maintain or lodge new objections.

What does the Retirement Income Act 2005 regulate?

Sichern Sie sich einfach die volle Steuererstattung, die Ihnen zusteht!

Nur SteuerGo bietet Ihnen:

  • Persönliche Steuertipps im Wert von 312 Euro (Durchschnitt)
  • Verständliche Eingabehilfen und Erklärungen
  • Import aus jeder beliebigen anderen Steuersoftware
  • Schnelle Antworten bei Fragen

Jetzt kostenlos testen

kundenbewertung

Field help

Taxable pension from ...

Select the option that applies to your situation:

Pension from a German statutory pension insurance

Select this option if you receive a pension from a German statutory pension insurance, such as:

  • Old-age pensions from the Deutsche Rentenversicherung (DRV)
  • Disability pensions
  • Widows' and orphans' pensions (survivors' pensions)

These pensions are subject to German tax law. The taxable portion depends on the start date of the pension and the amount received.

All tax-relevant amounts for pensions from Germany can be found in the "Information on the notification to the tax authorities". The certificate from the Deutsche Rentenversicherung (DRV) contains all amounts and entry instructions for the tax forms.

Example: Mr Müller has been receiving an old-age pension from the DRV since 2024. He selects this option and takes all relevant information from the "Information on the notification to the tax authorities (insured person's pension)".

Pension from a foreign statutory pension insurance

Select this option if your pension comes from a foreign pension insurance, such as:

  • Pension from a statutory pension fund of another country (e.g. USA, Canada, Australia, UK)
  • Equivalent benefits from an EU member state or a third country

Such pensions must be taxed in Germany if you are subject to unlimited tax liability here. Double taxation agreements (DTAs) determine which country has the right to tax. The foreign country may have a taxation right. To avoid double taxation, foreign income is either exempted or the taxes paid abroad are credited according to § 34c EStG.

Relevant information on foreign pensions can be found in the documents from the pension provider – such as the approval notice or a pension statement.

Example: Mrs Schmidt receives a pension from the US Social Security and lives in Germany. According to the double taxation agreement (DTA), this pension is taxed in Germany, as the right to tax lies here.

Pension start date

Enter the date from which your pension was approved. This is the official start date of the pension, even if the approval was granted retroactively. You can find the exact date in the pension notice or in the documents from the pension provider.

Special case: One-off payment

If you received only a one-off payment (e.g. pension arrears) in the year 2025, please enter the date of the actual payment receipt.

Where can I find the pension start date?

All tax-relevant amounts for pensions from Germany can be found in the "Information on the notification to the tax authorities" from the German Pension Insurance (DRV).

Relevant information on foreign pensions can be found in the documents from the pension provider, such as the approval notice or a pension statement.

Pension amount 2025 (gross pension without subsidies)

Enter the pension amount here. This is also referred to as the annual pension or annual gross pension. This includes one-off payments, back payments or pension adjustment amounts if they were received in 2025.

What is included in the pension amount?

The amount to be entered includes the total gross pension amount for the calendar year 2025, including one-off or back payments as well as pension adjustments, provided they were received in the same year.

Do not deduct: Contributions to health and nursing care insurance that were withheld upon payment must not be deducted from the gross pension. Please enter these further down in the "Health insurance details" section.

Do not add: Pension insurance subsidies for health insurance are tax-free and are not added to the pension amount.

Where can I find the pension amount?

All tax-relevant amounts for pensions from Germany can be found in the "Information on the notification to the tax authorities" from the German Pension Insurance (DRV).

Relevant information on foreign pensions can be found in the documents from the pension provider – such as the approval notice or a pension statement.

... pension adjustment amount included therein

Enter the pension adjustment amount here. This is the sum of all pension increases from the third year of retirement onwards – in other words, the amount by which your annual gross pension has increased compared to the year after the start of your pension.

Note: Every pension increase is 100% taxable and must therefore be declared separately in the tax return.

Where can I find the pension adjustment amount?

All tax-relevant amounts for pensions from Germany can be found in the "Information on the notification to the tax authorities" from the German Pension Insurance (DRV).

For foreign pensions, calculate the pension adjustment amount yourself as the difference between the gross pension in the year after the start of the pension and the gross pension in the year 2025.

Example: A pensioner retired in 2008. In the year after retirement began (2009), his annual gross pension was 12,500 Euro. In the current tax year 2025, the annual gross pension is 14,200 Euro. The difference of 1,700 Euro corresponds to the pension adjustment amount, which must be entered in this field.

Income-related expenses

Enter here the amount of income-related expenses you incurred in connection with the pension income.

This includes, among other things:

  • Consulting costs
  • Lawyer's fees
  • Social court costs

If your actual income-related expenses are higher than 102 Euro, you can provide corresponding proof and claim these expenses. If the amount is lower, the flat-rate allowance will be applied.

The standard allowance for income-related expenses of 102 Euro is an annual amount and applies to all income from pensions together – regardless of whether you receive one or more pensions. This standard allowance is automatically taken into account. It is not necessary to enter it manually.

Country from where the pension is paid:

Select here the country from which you have received pension.

Important: If taxes have been withheld or paid in the foreign state, these amounts may not be deducted from the pension amount you have indicated on this page.

Would you like to provide information on the savings clause?

Enter "Yes" here if you want to provide information on the opening clause.

If you have paid contributions above the amount of the maximum contribution to the statutory pension insurance for at least ten years up to 31.12.2004, parts of the life annuities or other benefits will only be taxed with the share of income upon application (so-called opening clause).

The opening clause is only applicable if you can prove that the conditions are met. The pension fund will issue a statement to this effect upon request. Enter the certified percentage in the line below.

Income-related expenses on additional payments for several years

Enter related expenses, which relate to payments for several previous years.

These include:

  • Consulting fees
  • Attorney fees
  • Social court costs
possibly received a one-time payment Enter the amount of a one-time payment received, which is subject to the savings clause.
Percentage according to the statement of the pension fund

Enter the percentage confirmed by your pension fund.

Are subsequent payments for several years included in the pension payments?

If the pension payments include back payments for previous years, select "yes" here.

Based on this entry, the tax office will check whether a reduced tax rate can be applied to these back payments under the so-called fifth rule (§ 34 EStG).

Important: Back payments for the current calendar year 2025 should not be entered here.

Subsequent payments for several years

Enter the total amount of pension arrears relating to several previous years here.

Based on this entry, the tax office will check whether a reduced tax rate under the so-called fifth rule (§ 34 EStG) applies to these arrears.

Where can I find the arrears amount?

All tax-relevant amounts for pensions from Germany can be found in the "Information on the notification to the tax authorities" from the German Pension Insurance (DRV).

For foreign pensions, calculate the pension adjustment amount yourself as the difference between the gross pension in the year after the start of the pension and the gross pension in the year 2025.

Example: Mr Meier has been receiving a statutory old-age pension since 2020. Due to a lengthy review process, he received an arrears payment in 2025 for the years 2021 to 2023 – in addition to the regular pension for 2025.

Start of the previous pension

If your pension was preceded by another pension of the deceased spouse / civil partner, for example, disability pension or retirement pension, enter the start date of the previous pension.

This regulation only applies if the previous pension ended after 31.12.2004.

For the subsequent pension, the actual pension start is not determined, but a notional pension start is determined and used as the basis for the calculation. This usually results in more favourable taxation for your pension.

End of the previous pension

If your pension was preceded by another pension of the deceased spouse / civil partner, for example, disability pension or retirement pension, enter the end of the previous pension.

This regulation only applies if the previous pension ended after 31.12.2004.

For the subsequent pension, the actual pension start is not determined, but a notional pension start is determined and used as the basis for the calculation. This usually results in more favourable taxation for your pension.

Did you receive any other pension before this pension?

If your pension was preceded by another pension from the deceased spouse / civil partner, for example, disability pension or retirement pension, select "Yes".

This regulation only applies if the previous pension ended after 31.12.2004.

For the subsequent pension, the actual pension start is not determined, but a notional pension start is determined and used as the basis for the calculation. This usually results in more favourable taxation for your pension.

Type of pension

Please select here the type of pension.

Selection:

  • Retirement pension
  • Disability pension / incapacity benefit
  • Large widow's / widower's pension
  • Small widow's / widower's pension
  • Orphan's pension
  • Child raising pension
  • Miner's pension / Miners' compensation
  • Miners' pension (Knappschaftsruhegeld)
The pension ends on

Enter here when the pension ceases or is converted at the latest.

Type of pension

Select here the type of pension.

Selection:

  • Retirement pension
  • Disability pension / incapacity benefit
  • Disability pension
  • Large widow's pension or widower's pension
  • Small widow's pension or widower's pension
  • Orphan's pension
  • Child-raising pension

Request a cost-free statement from the German Pension Insurance (Deutsche Rentenversicherung) called "Notification for submission to the tax office" (Mitteilung zur Vorlage beim Finanzamt) using our sample letter. The statement contains all amounts relevant for tax purposes with instructions on which lines of the tax forms the values are to be entered. Once you have applied for the statement, it will be sent to you automatically in subsequent years.

You can also call the telephone hotline 0800 1000 480 70 of the German Pension Insurance (Deutsche Rentenversicherung).

Life annuities and other benefits from the statutory pension insurance schemes, the agricultural pension fund and the occupational pension schemes are only subject to taxation with a certain proportion that depends on the year in which the pension starts.

This includes life annuities and other benefits from foreign (pension) insurance or annuity contracts.