Tax: Pension: Which pensioners have to pay a lot of taxes

The taxes on pensions have risen sharply in some cases. Left parliamentary group leader Bartsch wants to change that for small and medium-sized salaries.

  • The taxes on pensions are rising steadily
  • But who has to pay a lot of tax on their pension?
  • We give an overview

The taxes on medium-high Pensions have increased the most in comparison over the past ten years. Anyone who retires in 2021 and receives a gross pension of 1,500 euros per month has to pay 454 euros over the year Income tax counting.

That is about four times as much as ten years ago, when this amount of 110 euros was due. This emerges from the new figures that the Left Group at Federal Ministry of Finance has queried and our editors have it.

New pensioners who receive a gross monthly pension of 1700 euros this year have to pay almost two and a half times as much income tax as they did ten years ago. A total of 807 euros are now due, according to the information in 2011 it would have been only 336 euros with the same amount of remuneration. There are also deductions for Health insurance and care insurance.

Retirees have to pay significantly more

From 2000 euros gross monthly pension, 1416 euros in income tax are due this year. That is about twice as much as in 2011. At that time, the tax authorities collected around 740 euros for such a pension. who Retirement benefits of 2500 euros per month, pays 2493 euros in taxes in the current year, according to the Ministry of Finance. That is around 1000 euros more than ten years ago. Read here: Almost one in five cannot make private provision for old age

Pensions of 1200 euros a month are less affected. A total of 27 euros will be due on them in the current year. Until 2018, however, no income tax had to be paid on this amount.

Overall, the annual tax burden for all the pensions mentioned is around 30 euros lower this year than in 2020. The reason for this is the increase in the Basic allowance at the beginning of the year. As of January 1, 2021, 9744 euros of income are tax-free. In the previous year, the tax exemption was 9,408 euros.

More on the subject of pensions

One has been running since 2005 Change of pension taxation. The tax burden on the pensions paid has been increasing gradually since then. The year of retirement is decisive. From 2040, the salary is to be fully taxed. At the same time, the tax burden on employees’ pension contributions has also been falling since 2005. From 2025, payments to the statutory pension insurance will be fully tax-exempt.

Left boss Bartsch calls for full taxation of pensions only from 2060

The parliamentary group leader of the left in the Bundestag, Dietmar Bartsch, called for significant changes in tax policy. “We should exempt small and medium-sized pensions from tax,” Bartsch told our editorial team. It could not be that the pension level “keeps falling and the tax should rise”.

Bartsch criticized that on the one hand billions flow out of it Federal stop into retirement, “on the other hand, the tax authorities pull the money out of the wallet of the pensioner. This left-pocket-right-pocket system has no future ”.

Bartsch also called for improvements to be made with regard to the change in pension taxation. He wanted the contributions of the Workers for pension insurance “don’t make it fully tax deductible until 2025, but before”.

He also advocated postponing full taxation of pensions to a later date. “It should only take effect in 2060 and not, as previously planned, in 2040. All of this helps the contributors and retirees,” said Bartsch. He also called for measures to be taken to avoid an imminent Double taxation to prevent in retirement.

At the end of May, the Federal Fiscal Court in Munich warned in a highly regarded decision that in the coming years a excessive tax burden retirees could face. For certain future groups of pensioners, the highest German tax court saw the danger of inadmissible double taxation. The judges therefore called for a change in the previous practice in pension taxation.

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