When are pensioners required to submit a tax return?

Pensioners are required to submit a tax return if their total income exceeds the annual basic allowance. In 2024, the basic allowance is:

• 11.784 Euro for single persons
• 23.568 Euro for married couples

Taxable income:

• State pension (Anlage R)
• Private pensions
• Rental income (Anlage V)
• Capital income (Anlage KAP)
• Other income

Taxable portion of the pension:

Not the entire pension is taxable. The taxable portion depends on the year the pension started:

• For new pensioners in 2024: 83% of the pension is taxable.
• For pensioners who retired before 2005: 50% of the pension is taxable.

A personal pension allowance is set in the second year of retirement and remains unchanged for life. Pension increases from the third year of retirement are fully taxable.

Example:

Mr Mustermann, who retired in 2005, has an annual pension of 30.000 Euro. His tax-free allowance is 15.000 Euro. As long as his total income does not exceed the basic allowance, he does not have to submit a tax return. However, with a net annual income of 15.000 Euro, a single pensioner would exceed the basic allowance and be required to submit a tax return.

Tip: Pensioners should claim possible income-related expenses to reduce their tax burden. This includes, for example, the income-related expenses allowance of 102 Euro.