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When and how is the age relief amount taken into account when calculating income tax?

You are granted the age relief amount if you have exceeded the age of 64 in the previous year.

The amount of the old-age relief is calculated as a percentage of your salary and the positive total of your other income. Your income from pensions or annuities is not included in the calculation of the old-age relief amount. Income from capital assets subject to final taxation is also not taken into account. The calculated old-age relief amount reduces the total of your income.

The old-age relief amount will be gradually reduced until 2058. In 2005, taxpayers born on or before January 1, 1941 received an old-age relief amount of 40% for old-age income for the first time, up to a maximum of €1,900. From 2006 until 2019, the old-age relief amount was gradually reduced by 1.6 percentage points for each new birth cohort. From 2020, the old-age relief amount was only reduced by 0.8 percentage points, and from 2022 it will only be reduced by 0.4 percentage points, for example for

  • 2023 14.0%, up to a maximum of € 665 and
  • 13.6% in 2024, with a maximum of € 646.

Each birth cohort retains its "personal" age relief amount for future assessment periods.

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