Your pension information states the gross pension – less arrives in your account. Health and long-term care insurance are deducted directly, plus income tax depending on the amount. Here we explain all calculation steps transparently – they are exactly the factors our net pension calculator works with.
Compulsorily insured retirees pay half of the general contribution rate of 14.6% – i.e. 7.3% – plus half of their health insurer's supplementary contribution. The German Pension Insurance covers the other half: "With a health insurance contribution of 14.6 percent, we therefore pay a subsidy of 7.3 percent of your gross pension" (source: deutsche-rentenversicherung.de, translated). For 2026, the GKV umbrella association's fact sheet lists the "average supplementary contribution rate 2.9%" (source: gkv-spitzenverband.de, translated) – your own health insurance share thus averages 7.3% + 1.45% = 8.75% of the gross pension.
Retirees bear the care contribution alone: 3.6% of the gross pension; childless retirees pay 4.2% (0.6% surcharge). Deductions from the second child under 25 reduce the rate.
The pension is taxed downstream. Decisive is the taxable share under Section 22 of the Income Tax Act (EStG), staggered by the "year of pension commencement" (source: gesetze-im-internet.de, translated): for pensions starting in 2026, 84% of the pension is taxable; the remainder stays tax-free for life as a fixed allowance. From the taxable part, the work-related expenses allowance (102 €), the special expenses allowance (36 €) and the health/care contributions are deducted. If taxable income is below the basic allowance (2026: 12,348 € for singles), no tax is due; above it, the income tax scale under Section 32a EStG applies.
**Net pension = gross pension − health contribution (8.75% avg.) − care contribution (3.6%/4.2%) − income tax ÷ 12**
Health: 157.50 € · Care: 64.80 € · Taxable share: 84% of 21,600 € = 18,144 €; after deducting allowances and provident expenses, taxable income is above the basic allowance – a moderate income tax in the low double-digit monthly range applies. Around 1,540–1,560 € remain net. You'll soon be able to run exactly such scenarios with our net pension calculator.
Inputs: monthly gross pension, year of pension commencement, childless yes/no, insurer's supplementary contribution (default 2.9%). Calculation: taxable share by commencement year, health = (14.6% + supplementary contribution) ÷ 2, care = 3.6%/4.2%, income tax via the Section 32a EStG scale formula with basic allowance. The full technical specification for implementation is included in the file rechner-spezifikation.md.
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On average, around 12.35% goes to health and long-term care insurance in 2026 (8.75% health + 3.6% care); depending on pension amount and start year, taxes are added. With average pensions, 80–88% usually remains net.
Yes, if your taxable income exceeds the basic allowance. Many retirees whose pensions started in the 2020s are affected because the taxable share is high.
Yes, but pension increases are fully taxable, as the allowance is frozen as a fixed euro amount. So somewhat less arrives net than the gross increase.
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Sources: Deutsche Rentenversicherung – Health and long-term care insurance for retirees · GKV-Spitzenverband – Fact sheet on calculation figures and contribution law 2026 (PDF) · Section 22 EStG – Types of other income (taxable share), gesetze-im-internet.de · Updated: 2026
