(2024) How is a private pension taxed?

Private annuities are always taxed based on the yield percentage. The amount of the taxable yield percentage depends on the age of the beneficiary at the start of the annuity payments. The yield percentage determined in this way is, for example, at the start of the annuity after the age of...

... 60: 22%

... 61: 22%

... 62: 21%

... 63: 20%

... 64: 19%

... 65: 18%

If these annuities are limited to a specific term, the special yield percentage according to § 55 EStDV applies. The yield percentage in this case does not depend on the age at the start of the annuity, but on the duration of the payments. For a term of for example ten years, the special yield percentage is 12% of the annuity payments.