Pensioner Tax Credit (Pensionistenabsetzbetrag)
Definition
The pensioner tax credit (Pensionistenabsetzbetrag) under § 33 Abs 6 EStG comes straight off the wage tax on a pension, € 1 of credit is € 1 less tax. In 2026 it is € 1.020 a year and phases out evenly from ongoing pension income of € 21.614 to zero at € 31.494. You get it when you draw a pension and are not entitled to the commuter credit, i.e. you do not also work. There is no flat allowance for work expenses on a pension.
Increased pensioner tax credit: conditions
- You are married or in a registered partnership for more than six months of the year and not permanently separated. Cohabiting is not enough.
- Your partner's income is at most € 2.720 a year.
- You are not entitled to the single-earner credit (which needs a child and excludes the increased amount).
It is then up to € 1.502 in 2026 and phases out from € 24.616 to zero at € 31.494. The pension office only applies it after an application on form E 30; otherwise it comes through the annual tax return.
Amounts and limits by year
Annual amounts in euros. The phase-out is measured on ongoing pension income, i.e. after health insurance and without the 13th/14th pension. Since 2023 the values are indexed to inflation every year; future years not yet set show »—«.
Sources: § 33 Abs 6 EStG 1988 (RIS, Fassungen je Jahr), Inflationsanpassungsverordnungen (BGBl II), BFG RV/5101328/2015 (Einschleifung an den Pensionseinkünften).