(2023) Up to what amount can I deduct insurance and pension expenses?

Pension expenses (contributions to the statutory pension insurance, professional pension schemes, and Rürup pension insurance) are deductible up to a certain maximum amount. However, in past years, the contributions only actually reduced tax by a certain percentage. This percentage changed annually, starting at 60% in 2005 and was set to rise to 100% by 2025.

However, the new rule is: From 2023 onwards – and not from 2025 – pension expenses are 100% deductible as special expenses (Section 10 (3) sentence 6 EStG, amended by the "Annual Tax Act 2022" of 16.12.2022).

In 2023, the deductible maximum amount for pension expenses is 26.528 Euro for single persons and 53.056 Euro for married couples. This amount applies in both West and East.

Other insurance expenses are deductible up to 1.900 Euro if the taxpayer receives tax-free contributions to their health insurance or allowances for medical expenses. If they do not receive these tax-free contributions, they can claim up to 2.800 Euro as other insurance expenses. However, the contributions only reduce tax if the maximum amount of 1.900 Euro or 2.800 Euro has not already been used up by contributions to basic health and nursing care insurance.

If you pay lower contributions to basic health and nursing care insurance, you have a little leeway to deduct contributions for unemployment insurance, liability insurance, and other insurances.

The tax office always considers contributions to private and statutory basic health insurance and statutory nursing care insurance at their actual amount, even if they exceed the maximum amount of 1.900 Euro or 2.800 Euro. Only if these amounts are not used up by health and nursing care insurance contributions can other insurance contributions be deducted within the remaining leeway.