The Aktivrente (active pension) is a tax allowance on employment income in retirement age: if you have reached the statutory standard retirement age and keep working as an employee, you can receive up to EUR 2,000 of wages per month tax-free since 1 January 2026. The rule is set out in section 3 no. 21 of the Income Tax Act (EStG). The conditions matter, because not every kind of work in retirement age is covered.
In short: The Aktivrente exempts up to EUR 2,000 of wages per month from income tax since 1 January 2026 (section 3 no. 21 EStG). You must have reached the standard retirement age and work as an employee subject to social insurance. Self-employment income, civil servant pay and mini-jobs are not covered. Last updated: November 2026.
Key points
- The allowance is up to EUR 2,000 of wages per month and applies since 1 January 2026.
- Employees who have reached the statutory standard retirement age qualify. Whether you draw an old-age pension does not matter.
- Self-employment income, civil servant pay, parliamentary allowances and mini-jobs are not covered.
- Unused amounts lapse. You cannot carry them into other months, including for bonus payments.
- Social insurance remains unchanged. The allowance only affects income tax.
What is the Aktivrente and since when does it apply?
The Aktivrente is not a pension supplement but a monthly tax allowance on wages. It is set out in section 3 no. 21 EStG and applies since 1 January 2026. The aim is to make continued work in retirement age more attractive for tax purposes. Your gross pay does not change; what changes is the part on which wage tax is levied.
The information in this guide draws on the FAQ of the Berlin Senate Department for Finance. The department itself notes that the information is guidance without binding effect. In individual cases, your local tax office (Finanzamt) decides.
Who can use the Aktivrente?
Two conditions must be met together. You have reached the statutory standard retirement age, and you work as an employee subject to social insurance. You can use the allowance from the month following the month in which you reach that age. The standard retirement age depends on your year of birth. You can find your date in your pension information letter or from the German Pension Insurance (Deutsche Rentenversicherung).
For career starters and relatives this is mainly a planning question: parents or grandparents who stay employed beyond the retirement age, part-time or full-time, can use the allowance without having to claim a pension. The start of the pension and the start of the Aktivrente are independent of each other.
- You work as an employee and your job is subject to social insurance.
- You have reached the standard retirement age. This applies even if you have not yet drawn an old-age pension.
- Midijobs (the transition-zone jobs) can also benefit because they are subject to social insurance.
- Comparable pension insurance contributions from employment in the EU, the EEA or Switzerland can satisfy the conditions.
Who is not covered?
The Aktivrente applies to wages from employment. Anything outside that remains taxable as before. The table below shows the classification according to the Berlin FAQ.
| Type of income | Aktivrente possible? | Note |
|---|---|---|
| Wages from employment subject to social insurance | Yes | Up to EUR 2,000 per month tax-free |
| Midijob | Yes | It is subject to social insurance |
| Mini-job | No | Expressly not covered |
| Self-employment income | No | Freelancers and traders are not included |
| Civil servant pay | No | Not covered |
| Parliamentary allowances | No | Not covered |
| Severance payments | Generally no | Usually not tax-free |
How is the Aktivrente processed in payroll?
Your employer takes the allowance into account directly when withholding wage tax. You generally do not need to apply, but you should check that your payslip shows the allowance. If you have several employers, the allowance applies to only one employment, usually the first.
- Several employers: The allowance is granted only once.
- Tax class VI: Your employer needs your confirmation that you are not using the allowance elsewhere.
- Monthly basis: The allowance applies per calendar month. What you do not use in one month cannot be carried into another.
- Bonus payments: The monthly limit also applies to a Christmas bonus.
Worked example: how much of your pay stays tax-free?
Assumption: The allowance is EUR 2,000 per month and you meet all conditions. The table only shows which part of your pay stays tax-free. How much wage tax applies to the rest depends on your tax class and other factors. For a net pay calculation, use the contributions calculator of the Federal Ministry of Finance (bmf-steuerrechner.de).
| Monthly gross pay (assumption) | Tax-free under the Aktivrente | Still taxable |
|---|---|---|
| EUR 1,500 | EUR 1,500 | EUR 0 |
| EUR 2,000 | EUR 2,000 | EUR 0 |
| EUR 2,600 | EUR 2,000 | EUR 600 |
Over a year, the maximum is EUR 24,000 (12 times EUR 2,000, calculated). Because the allowance is monthly, you can only reach that figure if your pay is at least EUR 2,000 in every month. If you earn EUR 1,200 in one month and EUR 3,000 in December, EUR 800 of the allowance stays unused in the first month, and EUR 2,000 is tax-free in December. There is no offsetting.
What changes for social insurance and the tax return?
Social insurance remains unchanged. The Aktivrente is a tax rule and does not alter contributions in social insurance. In your tax return you usually do not need to deal with the allowance, because the employer reports the tax-free amounts in the electronic wage tax certificate. Exceptions apply, for example, if the employer did not apply the allowance or applied it only in part.
Costs connected with the tax-free wages cannot be deducted as income-related expenses or provision expenses. Mixed costs are apportioned. This matters for commuting costs, because part of your pay stays tax-free.
Frequently asked questions
Do I have to draw an old-age pension already?
No. Whether you draw an old-age pension does not matter. What counts is that you have reached the standard retirement age and work as an employee subject to social insurance.
Does the Aktivrente apply to self-employed people and civil servants?
No. Self-employment income and civil servant pay are not covered, nor are parliamentary allowances. Wages from employment subject to social insurance are covered.
Does it apply to a mini-job?
No, mini-jobs are expressly not covered. A midijob, by contrast, can benefit because it is subject to social insurance.
From when can I use the allowance?
From the month following the month in which you reach the standard retirement age. Your employer then takes the allowance into account in wage tax withholding.
Do unused amounts lapse?
Yes. The allowance is monthly, and unused amounts cannot be carried into other months. This also applies to bonus payments such as a Christmas bonus.
Do severance payments count under the Aktivrente?
Generally not. According to the Berlin FAQ, severance payments are usually not tax-free. Ask your tax office before signing an agreement, because the details matter.
Do I have to file a tax return because of the Aktivrente?
Usually not, because the employer reports the tax-free amounts electronically. It may be different if the allowance is missing from your payslip or was applied only in part. In that case, involve your tax office.
What to do now
- Check when you reach or reached the standard retirement age, for example through your pension information letter.
- Confirm with your employer that the allowance is applied in wage tax withholding. With several employers, you decide where it should apply.
- Check your first payslip after reaching the age and the wage tax certificate at year end.
- If anything is unclear, for example on tax class VI or mixed costs, contact your tax office or a tax adviser.
Related guides
- What changes in 2027 for taxes? The overview
- What changes in 2027 for pensions?
- Applying for a pension: when you need it (in German)
- Pension Insurance for Students in Germany: Rules
If you want to discuss personal retirement provision, you can do so in a consultation with Academycon. For tax questions, your tax office or a tax adviser is the right contact.
Sources: Berlin Senate Department for Finance, FAQ on the Aktivrente (in German) (page retrieved November 2026), Section 3 EStG, tax-exempt income (in German) (as of November 2026).
Last updated: November 2026. This guide is general information, not individual advice.
