(2023) What is the retirement relief amount?

The old-age tax allowance can be used by pensioners who, in addition to income from pensions, also earn additional income or wages.

Additional income includes, for example:

• Income from renting,
• Capital assets,
• Income from self-employment,
• Income from private sales transactions,
• Income from a Riester pension.

However, the tax office first deducts various amounts (saver's allowance, income-related expenses allowance). The amount of the old-age tax allowance depends on the pensioner's year of birth.

Due to changes in the law, the old-age tax allowance will be reduced more slowly from 2023, and the reduction period has been extended from 2040 to 2058. For pensioners from 2023, the percentage will no longer be reduced by 0.8 percentage points annually, but only by 0.4 percentage points annually. The maximum amount will decrease from 2023 by 19 Euro annually instead of 38 Euro annually (§ 24a sentence 5 EStG, amended by the "Growth Opportunities Act").

For persons who turn 64 in 2022 (born between 2.1.1958 and 1.1.1959), the old-age tax allowance from 2023 is 14.4% of income, up to a maximum of 684 Euro. If you turn 64 in 2023 (born between 2.1.1959 and 1.1.1960), the old-age tax allowance from 2023 is 14.0% (instead of 13.6%), up to a maximum of 646 Euro (instead of 608 Euro).