Active Pension 2026
Since 1 January 2026, retirees at the German statutory retirement age can earn up to €2,000 a month tax-free. The Aktivrentengesetz applies to regular employment, not self-employment, civil service, parliamentary work, or Minijobs.
By Checkalle · Last updated: · Deutsche Version · Türkçe
Key Takeaways
- €2,000 a month tax-free on top of your statutory old-age pension, capped at €24,000 per year.
- Only employees who have reached the Regelaltersgrenze (statutory retirement age, 67 with transitional cohorts) qualify. Early retirees and disability pensioners do not.
- Self-employed, civil servants (Beamte), parliamentarians, and Minijob workers are explicitly excluded under § 3 Nr 21 EStG.
- Health and long-term care insurance contributions still apply. The Aktivrente is a tax exemption, not a social security one.
- No application is needed. Your employer applies the allowance through payroll.
€2,000
a month, tax-free
€24,000
a year, tax-free allowance
No
earnings cap on the pension itself
Compare private pension top-ups
How the Active Pension works
The legal anchor is § 3 Nr 21 of the German Income Tax Act (EStG). Once you reach the statutory retirement age and work as a regular employee, the first €2,000 of monthly wages stay outside your taxable income. The rest is taxed normally. Pension contributions and health insurance contributions are not affected.
1. Reach the Regelaltersgrenze
You need to be at the statutory retirement age (currently 67, with transitional cohorts up to 1963). Drawing the pension itself is not required, postponing it is fine too.
2. Take a regular job
Part-time or full-time, the only condition is that the role is subject to social insurance contributions (sozialversicherungspflichtig). Pure Minijobs do not qualify.
3. Use the tax-free allowance
The first €2,000 you earn in a month are exempt from income tax. Above that, your normal personal tax rate applies. The cap resets every month and unused amounts expire, so a quiet January cannot pay for a busy March.
4. Top up your pension (optional)
If you keep paying voluntary RV contributions while working, your statutory pension grows further. Your DRV Renteninformation will show the exact figure for your situation.
The cap is monthly, not yearly
This is where most people get it wrong. The €24,000 is not a yearly pot you can draw from whenever you like. Each month stands on its own. Earn €1,000 in January and the unused €1,000 is gone. It does not roll into March.
The Federal Ministry of Finance answers this directly in its Aktivrente FAQ: unused allowances cannot be carried forward or backward. The legislative reasoning goes further and states that the €2,000 monthly ceiling cannot be exceeded at year-end assessment either (BMF FAQ, Bundestag printed paper 21/2673).
Watch your holiday and Christmas pay. Urlaubsgeld, Weihnachtsgeld and bonuses count in the month they are paid. A €1,500 Christmas bonus on top of a €1,800 salary breaks the December ceiling, even if your yearly average sits well below it.
When do you reach the German statutory retirement age?
"67" only holds from the 1964 cohort onwards. If you were born earlier, your Regelaltersgrenze is lower, and your birth month matters too. The allowance then starts the month after you reach it.
| Year of birth | Statutory retirement age |
|---|---|
| 1959 | 66 years + 2 months |
| 1960 | 66 years + 4 months |
| 1961 | 66 years + 6 months |
| 1962 | 66 years + 8 months |
| 1963 | 66 years + 10 months |
| 1964 and later | 67 years |
Stepped increase under § 235 SGB VI. Your exact date is printed on your DRV pension statement.
How Aktivrente became law
15 October 2025 — Cabinet decision
The Federal Cabinet approved the bill for the Aktivrente (Bundesregierung press release).
5 December 2025 — Bundestag vote
The Bundestag passed the Aktivrentengesetz in second and third reading.
19 December 2025 — Bundesrat approval
The Bundesrat approved the law without calling the Mediation Committee.
1 January 2026 — In force
Wage payments from this date onward fall under the new tax-free allowance (BMF FAQ, DRV FAQ).
Who is excluded
The law is narrow on purpose, and the exclusions work through two conditions rather than a list of banned professions. § 3 Nr 21 EStG covers only wage income from employment (§ 19 EStG), and it requires your employer to pay pension contributions under § 168 SGB VI. Miss either condition and the allowance does not apply.
- Self-employed — their income is not wage income under § 19 EStG
- Civil servants (Beamte) — no § 168 SGB VI pension contributions are paid for them
- Parliamentarians (Abgeordnete) — their allowance is taxed as other income under § 22 Nr 4 EStG, not as salary
- Minijob workers (up to €603 a month in 2026) — no § 168 contributions in a Minijob
- Midijob is the way in. Move from a Minijob into the transition band (€603.01 to €2,000) and the contributions start, which makes you eligible
- Early retirees and disability pensioners — separate Hinzuverdienst rules apply
If you fall into one of these groups and someone tells you the €2,000 allowance is for you, double-check with the Deutsche Rentenversicherung before signing anything. Different rules can sound similar but produce very different tax bills.
Aktivrente for expats and foreign retirees
Citizenship is not the test. What matters is whether you are entitled to the German statutory old-age pension (Regelaltersrente) and whether your job in Germany is subject to social insurance. EU and non-EU retirees who built up enough contribution years in the German pension system qualify on the same terms as German nationals.
Two practical points if you are an expat:
- If you live in Germany. Your wage is taxed in Germany, the Aktivrente allowance applies through your employer, no extra paperwork.
- If you live abroad. Cross-border income may be covered by a double-tax treaty. Run your specific case past the DRV abroad office and a tax advisor before relying on the €2,000 allowance.
For broader expat coverage of pension topics, see our pension guide for foreigners in Germany, or the English-language report by IamExpat.
Example: a retiree with a side job
Starting point
- Net pension€1,400/month
- Side-job gross wage€1,800/month
- Tax-free under Aktivrente€1,800
Result
Net side-job figure is after KV/PV contributions. Your real number depends on your statutory health fund rate and personal factors.
What you pay, what you keep
| Item | Up to €2,000/month wage | Above €2,000 |
|---|---|---|
| Income tax (Lohnsteuer) | 0% | Personal tax rate on the surplus |
| Health insurance (KV) | Standard contribution applies | Standard contribution applies |
| Long-term care (PV) | Standard contribution applies | Standard contribution applies |
| Pension contribution (RV) | Optional, raises your future pension | Optional, raises your future pension |
| Solidarity surcharge / church tax | Not applied on the tax-free part | Applied on the surplus |
| Effect on your tax rate (Progressionsvorbehalt) | None. The exempt amount does not push the rate on your other income upward | |
Specific KV/PV rates change every year. For 2026 figures, check our pensioner health contribution overview and the 2026 contribution ceiling.
Aktivrente vs Hinzuverdienst vs Flexi-Rente
Three rules sound alike and people mix them up. They are different.
| Merkmal | Active Pension (Aktivrente) | Early-retirement Hinzuverdienst | Flexi-Rente |
|---|---|---|---|
| Who | Retirees at the statutory age | Early or disability pensioners | Anyone moving in or out of retirement gradually |
| What it does | €2,000/month income tax exemption | Caps how much you can earn while drawing the pension | Combines partial pension with continued work + RV contributions |
| Legal basis | § 3 Nr 21 EStG (since 2026) | SGB VI (older rules) | Flexirentengesetz 2017 |
| Application needed | No | Reported via DRV | Yes, with DRV |
Mixing these up is the most common Aktivrente mistake we see. If a calculator promises you €2,000 tax-free as an early retiree, treat it with suspicion.
Frequently asked questions
When did the Active Pension take effect in Germany?
The Aktivrente has been in force since 1 January 2026. The Bundestag passed the Aktivrentengesetz on 5 December 2025, and the Bundesrat approved it on 19 December 2025.
Who can use the Active Pension?
Two conditions have to be met. You have reached the statutory retirement age (Regelaltersgrenze: 67 from the 1964 cohort, lower for 1959 to 1963), and your employer pays pension contributions under § 168 SGB VI for the job. The allowance then starts the month after you reach that age. Self-employed people, civil servants, parliamentarians and Minijob workers fall outside it.
How much can I earn tax-free as a retiree in Germany in 2026?
Up to €2,000 a month, which comes to €24,000 over a full year, is exempt from income tax. Anything above €2,000 in a given month is taxed at your personal rate. The cap is strictly monthly: an unused allowance in one month cannot be carried into another, and that applies to holiday pay, Christmas pay and bonuses as well.
Do I have to apply for the Active Pension?
No. Your employer applies the tax-free allowance automatically through payroll. There is no separate form to fill in.
Do social security contributions still apply?
Yes. The Active Pension is an income tax exemption, not a social security exemption. Health insurance (KV) and long-term care insurance (PV) contributions are still due on the wage.
Will my pension increase if I keep working past retirement?
It can, if you choose to continue paying voluntary pension insurance (RV) contributions while working. The exact increase depends on your contribution level and the current pension value (Aktueller Rentenwert) at the time you stop. For your personal figure, check your DRV pension forecast (Renteninformation).
Can foreigners and expats benefit from the Aktivrente?
Yes, if you are entitled to the German statutory old-age pension (Regelaltersrente) and work as a regular employee in Germany. Citizenship is not the criterion. Eligibility runs through the German pension system, so EU and non-EU residents qualify on the same terms as German nationals.
What happens to early retirees and disability pensioners?
They are not covered by the Active Pension. Different rules apply for them under the Deutsche Rentenversicherung (Hinzuverdienstgrenzen for early or reduced-earning-capacity pensions), and these have nothing to do with the new Aktivrentengesetz.
Other 2026 changes that may affect you
The Aktivrente sits inside a wider set of 2026 reforms that touch retirees and workers in Germany. A few that often come up alongside it:
- • Pensioner health contribution 2026, the Zusatzbeitrag rules that determine what your KV deduction looks like.
- • 2026 contribution ceiling (Beitragsbemessungsgrenze), the wage threshold above which social insurance percentages stop applying.
- • 2026 reforms overview, the broader summary of legal changes affecting income, tax, and benefits.
- • Riester reform 2027, the next major change to the private pension landscape.
- • Frühstart-Rente 2026, the planned 10 euros per month from the state for every child aged 6 to 18.
Sources and further reading
- • § 3 EStG, current statutory text — the wording of no. 21 that governs the allowance.
- • Federal Ministry of Finance, Aktivrente FAQ — the ministry notes this is guidance, not a binding administrative instruction.
- • Deutsche Rentenversicherung, Aktivrente FAQ — eligibility and pension-side questions.
- • German Bundestag — record of the 5 December 2025 vote.
Last reviewed 9 August 2026. This page explains the rules in general terms and is not tax advice. For your own situation, check with your Finanzamt or a Steuerberater. Advertising notice: this page contains affiliate links to Tarifcheck and CHECK24, and we earn a commission when a comparison leads to a contract. That does not change what the comparison shows you.