Module 120 min2443 wordsFree — no account
Statutory and private pensions: taxable share, frozen allowance, income portion
The module’s worked examples, then cases to attempt before revealing their solution · 2 sections · 248 words · 3 min
Worked example
Why the increase counts in full
A pension starting in 2026 pays 18,000 euros in its first year. Of that, 84 percent is taxable, or 15,120 euros; 2,880 euros remain tax-free. If an adjustment raises the pension to 18,600 euros in 2027, the tax-free portion stays at 2,880 euros. The taxable amount is now 15,720 euros, roughly 84.5 percent of the pension.
Practical case
Two pensions, two methods
Mr Albers had completed his 67th year of life when his pensions began. Since 1 January 2026 he has drawn a statutory old-age pension of 1,500 euros a month and a private life annuity of 400 euros a month, which started on the same day. Neither pension is adjusted in 2026. What pension income results for 2026, and what tax-free portion of the statutory pension applies from 2027?
Hint: Treat each pension under its own table: one by the starting year, the other by age. The flat-rate allowance is granted only once.
Show the solution
The statutory pension gives an annual amount of 12 times 1,500 euros, or 18,000 euros. With a start in 2026, 84 percent is taxable, which is 15,120 euros; the remaining 2,880 euros form the tax-free portion that applies unchanged from 2027. The private annuity pays 4,800 euros a year, of which the income portion of 17 percent is taxable, or 816 euros. Together that makes 15,936 euros; after the single flat-rate allowance of 102 euros, the income remains.
Answer: 15,834 euros of pension income, tax-free portion of the statutory pension 2,880 euros
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.