Taxation of pensions in Germany
A statutory pension starting in 2026 is 84 percent taxable, a private life annuity from age 67 only 17 percent, and every later pension increase counts in full, because the tax-free portion is frozen in euros. The second module covers civil-service pensions with a pension allowance of 12.8 percent, capped at 960 € plus a 288 € supplement, and the old-age relief amount of at most 608 €. The third covers Riester: 175 € basic allowance, 300 € per child, a 4 percent minimum own contribution and the 2,100 € special-expense deduction. Three modules, each with a fully worked case study.
Intermediate3 modules60 minModule 1 free to read
2026 rules — verified on September 23, 2026
Figures are tied to dated, sourced tax constants. A module whose rules have changed is flagged for review, and is unpublished automatically beyond 90 days.
This content is part of the path: Retiring· Step 1 of 11· Next step: German state pension age — when does your standard old-age pension start?
By the end of this course, you can…
These outcomes are the modules' own: the promise cannot say anything the course does not teach.
- tell whether a pension is taxed by the taxable share or by the income portion
- read the taxable share from the table in § 22 EStG according to the year the pension started
- work out the tax-free portion of the pension in euros and explain why later increases are fully taxable
- determine the income portion of a private life annuity from the age at which it started
- apply the flat-rate deduction for pension expenses correctly, and only once
- recognise which retirement payments count as pension payments (Versorgungsbezüge) and therefore as employment income
- read the pension allowance, its cap and the supplement from the table in § 19(2) EStG for a pension starting in 2026
- build the basis of assessment and apply the twelfths rule in the first year
- calculate the old-age relief amount under § 24a and know its exclusions
- match statutory pensions, civil-service pensions and other retirement income to the right relief
- distinguish between persons entitled to the allowance directly and indirectly
- put figures on the basic allowance, the career starter bonus and the child allowance under §§ 84 and 85 EStG and assign them correctly
- calculate the minimum own contribution under § 86 and follow the reduction when contributions fall short
- place the special-expense deduction under § 10a and its better-of test
- explain why payouts from a subsidised contract are fully taxable
The programme, module by module
Each module has its own page. Durations are derived from the actual text, never announced by hand.
- Module 120 minFree — no accountStatutory and private pensions: taxable share, frozen allowance, income portionWhat you will be able to do
- tell whether a pension is taxed by the taxable share or by the income portion
- read the taxable share from the table in § 22 EStG according to the year the pension started
- work out the tax-free portion of the pension in euros and explain why later increases are fully taxable
- determine the income portion of a private life annuity from the age at which it started
- apply the flat-rate deduction for pension expenses correctly, and only once
- Module 221 minIncluded in the full courseCivil-service pensions and employer-paid pensions, old-age relief amountWhat you will be able to do
- recognise which retirement payments count as pension payments (Versorgungsbezüge) and therefore as employment income
- read the pension allowance, its cap and the supplement from the table in § 19(2) EStG for a pension starting in 2026
- build the basis of assessment and apply the twelfths rule in the first year
- calculate the old-age relief amount under § 24a and know its exclusions
- match statutory pensions, civil-service pensions and other retirement income to the right relief
- Module 320 minIncluded in the full courseRiester: allowances, minimum own contribution, special-expense deduction and taxation of payoutsWhat you will be able to do
- distinguish between persons entitled to the allowance directly and indirectly
- put figures on the basic allowance, the career starter bonus and the child allowance under §§ 84 and 85 EStG and assign them correctly
- calculate the minimum own contribution under § 86 and follow the reduction when contributions fall short
- place the special-expense deduction under § 10a and its better-of test
- explain why payouts from a subsidised contract are fully taxable
What you take away
A handout you keep, not just a page you read. The sections are derived from the course itself: what is announced here is exactly what gets generated.
Participant handout (PDF)
PDF
- Learning objectives (3)
- Key figures (8)
- Mistakes to avoid (3)
- Official sources (3)
Exercise workbook (Word)
Word
- Learning objectives (3)
- Key figures (8)
- Mistakes to avoid (3)
- Official sources (3)
Answers live in a separate appendix: the participant handout and the workbook stay distributable before the exercise.
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Educational content, current with the sources cited. It does not replace advice tailored to your situation. These courses are neither certifying nor CPF-eligible: they prepare for no certification registered with the French RNCP or specific register.