How much is the pension taxed?

Pensions in Germany have been partially taxed since 2005. The amount of this portion depends on the year of retirement. Those who started their retirement in 2005 and before only have to pay tax on 50 percent. If you retire thereafter, the taxed share increases by two percentage points each year, and from 2021 finally by one percentage point per year. From retirement in 2040, the entire pension is taxed. However, the tax office recognises a lump sum of 102 euros as income-related expenses. Higher expenses must be declared in Annex R.

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