Tax

Aktivrente (Active Pension)

Last updated: July 2026 Reviewed & verified by Galvin Mendonca

Definition

A German tax exemption effective January 1, 2026, under Rentenpaket II, allowing working pensioners past statutory retirement age to earn up to €2,000/month tax-free.

Key Takeaways

  • Earn up to €2,000 per month (€24,000 per year) completely income-tax free past retirement age.
  • Only applies to social-insurance contributing employment (not self-employed or Minijobs).
  • Active work earnings remain subject to employee social security contributions.
  • No separate application is required; Lohnsteuer exemption is processed automatically via payroll.

Detailed Explanation

The Aktivrente (Active Pension) is a tax incentive introduced on January 1, 2026, to encourage seniors to continue working voluntarily. Under the rule, Lohnsteuer (income tax) is not levied on the first €2,000/month (€24,000/year) of active work earnings on top of a pensioner's statutory retirement pension.

Key Qualifications - You must have reached the statutory retirement age (Regelaltersgrenze, currently age 67). - You must work in a social-insurance contributing job. Self-employed individuals, Beamte (civil servants), and Minijobbers are excluded. - Income tax is exempt, but standard social security contributions (health, nursing care, and pension insurance) remain payable on the work earnings.

Real-World Example Klaus, age 68, receives a monthly statutory pension of €1,800. He takes a part-time job earning €1,500/month. Under Aktivrente, his entire €1,500 work income is exempt from Lohnsteuer (income tax), saving him approximately €300/month (20% tax bracket). However, he still pays social security contributions of approximately €260/month (17.3% combined employee share). His net monthly income increases from €1,800 (pension only) to €3,040 (pension + after-contribution work income), an additional €1,240/month.

Disclaimer: Definitions and explanations on this glossary page are provided strictly for general educational and informational purposes. They do not constitute formal financial, investment, legal, or tax advice. Financial regulations, caps, and limits change frequently. Always consult a qualified professional before making any financial decisions.
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