Despite the basic tax liability of pension payments from the statutory pension insurance, there is regularly no tax payment, as numerous allowances - in particular the basic allowance - are higher than the taxable portion of the pension. The basic tax-free allowance is €9,744 in 2021, €10,347 in 2022 and €10,908 in 2023. These amounts will double for jointly assessed spouses/registered partners.
The vast majority of pensioners do not have to pay tax on their pension because a certain percentage of the pension is tax-free. If the pension started in 2005 or earlier, only 50 percent of the pension payments are taxable. The percentage of the taxable portion increases by two percentage points for each new pension cohort until 2020, by one percentage point in 2021 and 2022 and then by 0.5 percentage points from 2023, so that when a pension begins in 2058, 100% of it will be taxable.
As a rule, a tax liability currently arises if there is other income (e.g. rental income, remuneration for secondary employment, salary income of the spouse) or if a widow's pension is drawn in addition to one's own pension.
Note
You can also find information on the Retirement Income Act in the "Tax tips for senior citizens".