Gross to Net Calculator for Retirees 2026
Gross to Net for Pensions - Key Facts
Retirees also don't receive their full gross pension. Various deductions are withheld from the gross pension before the net pension arrives in your bank account.
In short: The net pension is on average about 10-15% lower than the gross pension. With a gross pension of EUR 1,500, approximately EUR 1,300-1,350 net remains.
Deductions for Retirees
The following amounts are deducted from the gross pension:
| Deduction | Contribution Rate 2026 | Retiree Pays |
|---|---|---|
| Health Insurance | 14.6% + supplementary contribution | 7.3% + half suppl. |
| Care Insurance | 3.4% | 3.4% (full) |
| Income Tax | depending on amount | depends on taxation percentage |
Important: Unlike employees, retirees pay the full care insurance contribution themselves (3.4%). For health insurance, they share the contribution with the pension insurance.
Health Insurance for Retirees (KVdR)
Most retirees are mandatorily insured in the Health Insurance for Retirees (KVdR). The contributions are shared as follows:
- Retiree pays: 7.3% + half of the health fund's supplementary contribution
- Pension insurance pays: 7.3% + half of the supplementary contribution
With an average supplementary contribution of 2.9% (2026), the retiree pays a total of 8.75% for health insurance.
Pension Taxation 2026
Since 2005, pensions have been progressively taxed more. The taxation percentage depends on the year retirement began:
| Retirement Start | Taxation Percentage | Tax-Free |
|---|---|---|
| until 2005 | 50% | 50% |
| 2010 | 60% | 40% |
| 2020 | 80% | 20% |
| 2025 | 85% | 15% |
| 2026 | 86% | 14% |
| from 2040 | 100% | 0% |
Example Calculation: EUR 1,500 Gross Pension
This is how the net pension is calculated with a gross pension of EUR 1,500 (retirement start 2026, single):
| Gross pension (monthly) | EUR 1,500.00 |
| - Health insurance (8.75%) | -EUR 131.25 |
| - Care insurance (3.4%) | -EUR 51.00 |
| - Income tax (estimated) | -EUR 0.00* |
| Net Pension | approx. EUR 1,317.75 |
* For retirement start 2026, 86% is taxable. With the basic allowance of EUR 12,096, this pension remains tax-free.
Tax Allowances for Retirees 2026
- Basic allowance: EUR 12,096 (annual income up to this amount is tax-free)
- Senior citizen's relief amount: For supplementary income from age 64 (max. EUR 722)
- Flat-rate expenses: EUR 102 for retirees
Tip: Many retirees don't have to pay taxes if their annual pension is below approximately EUR 14,000-16,000 (depending on retirement start). Use our gross-net calculator for initial guidance!