What percentage of the pension is taxed?

Since 2005, pensions in the Federal Republic of Germany have been partially taxable. The amount of the taxable portion depends on the year of retirement. All pensioners who first received pension payments in 2005 or before only have to pay tax on 50 percent of the pension. If they retire thereafter, the taxed share increases by two percentage points each year, and since 2021 by one percentage point per year. All pensioners who draw their pension for the first time in 2040 or thereafter must pay full tax on it.

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