For example, new pensioners now have to pay €430 in income tax per year on a monthly gross pension of €1500, compared with €79 in 2010.
The figures were released on Wednesday, as part of an inquiry submitted to the Federal Ministry of Finance by Die Linke.
For an individual with a monthly gross pension of €1700, €294 was due at the start of pension payments in 2010. This year that figure has risen to €758.
If the monthly earnings were €2000, €679 in taxes would have been due in 2010. Now the figure has risen to €1326.
Die Linke Left Party leader Dietmar Bartsch criticized the increasing pension taxation as a “de facto pension cut”.
Why is there an increase?
The sharp increase is due to a change which was introduced in 2005. Until then, a tax-free allowance of 50 percent of the pension was permitted.
Since then, the tax rate on pensions has risen by two percentage points annually.
Health and long-term care insurance contributions and some everyday expenses can also be claimed.
The tax becomes due when the total income of a pensioner exceeds the basic annual tax-free allowance (€9168 or €764 per month). The average monthly pension in 2018 was €1219.
“In the next few years, the tax burden for small and medium-sized pensions will continue to rise,” Barsch told DPA.
He called on Finance Minister Olaf Scholz and Labour Minister Hubertus Heil (both SPD) to present a plan with significantly higher tax allowances to protect small and medium-sized pensions.
In 2015, a total of €34.65 billion in income tax was paid to the state by taxpayers with pension income.
There is currently a push around Germany to raise the pension age to 69, up from 67, in light of rising lifespans.
Read more of our coverage of pensions in Germany HERE.
Tax burden – (die) Steuerbelastung, (die) Steuerlast
Fivefold – um das Fünffache
due/payable – fällig
Pension contributions – (die) Rentenbeiträge
Basic tax-free allowance – (der) Grundfreibetrag
To deduct – abziehen
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