What does the tax increase mean?

What does the tax increase mean?

Off to retirement: Pensions are rising significantly, but due to the higher basic tax-free allowance, more are exempt from taxation.
Image: Jens Gyarmaty

Pensions will rise sharply on July 1st. Unlike in previous years, the plus does not mean a significantly higher tax burden for all retirees at the same time. An overview.

Dhe pensions will be raised on July 1st. While last year’s increase of 5.35 percent for the west and 6.12 percent for the east was described by some experts as historic, the increase in the current year is also impressive. As of July 1, there are 4.39 percent more in the west and 5.86 percent in the east. A decent plus in the two years – if it weren’t for inflation. Because the increase in pension cannot compensate for the price increases of the past two years.

In recent years, enthusiasm about pension increases has sometimes been limited because, for many, the plus means that they also have to pay more taxes. Or because of the pension increase, you were suddenly obliged to submit a tax return to your responsible tax office. But at least that will be different for many in 2022 and 2023.

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