Two questions have occupied German retirees for years: is the statutory pension taxed twice? And may the state tax the one-off EUR 300 energy price allowance it paid out as relief? Recent tax court decisions address both – with a clear tendency, but not the final word.
Double taxation of pensions: structural only, not case by case
The Hessian Tax Court held in its judgment of 19 November 2025 (4 K 698/22) that unconstitutionality of the pension taxation system can only be considered in the case of structural double taxation. An individual review of whether contributions and pension payments are doubly burdened for one particular taxpayer does not take place (sec. 22 EStG; art. 3 (1), art. 100 (1) GG). The decision is provisionally not final.
What this means in practice: the much-discussed "individual double taxation calculation" – comparing your own contribution payments with the taxable share of your pension – does not currently succeed in court as a stand-alone argument. The Federal Fiscal Court has not ruled out arithmetical proof in principle, but the bar is high: the calculation must cover an entire lifetime, in nominal amounts, without the basic allowance or special expense deductions.
What you can do: check whether your assessment contains a provisional note on pension taxation. If it does, you automatically benefit from future decisions of the Federal Constitutional Court without filing an appeal yourself. If it does not, an appeal can keep your case open.
Energy price allowance for retirees: taxation is constitutional
The EUR 300 energy price allowance paid to retirees in December 2022 counts as taxable income under sec. 22 no. 1 sentence 3 letter c EStG. The Saxon Tax Court considers this rule compatible with the constitution; an appeal on points of law has been filed (published in EFG no. 10/2026, p. 671).
What this means in practice: anyone who appealed against the taxed allowance must remain patient – the case before the Federal Fiscal Court will settle the question. New appeals only make sense if your own assessment is not yet final. For many retirees the effect is small anyway: the allowance raises taxable income by EUR 300 and is taxed at the personal rate – roughly EUR 60 at a marginal rate of 20 per cent.
Why checking the assessment matters for retirees
Pension and tax assessments are error-prone: the pension allowance is determined from the first full year of receipt and then fixed, pension increases are fully taxable, and health and long-term care contributions are often recorded incompletely. On top of that, data transmitted electronically by pension providers may be corrected by the tax office later under sec. 175b AO – in your favour or against you, as the Münster Tax Court confirmed again for wage data in its judgment of 13 February 2026 (4 K 64/23 E, appeal pending at the BFH: IX R 3/26).
This is exactly where a Lohnsteuerhilfeverein comes in: we prepare the return, review the assessment and file an appeal where needed – all covered by the membership fee. More on our page for retirees.
Frequently asked questions
Do retirees have to file a tax return at all? Filing is mandatory if the taxable part of your income exceeds the basic allowance or the tax office asks you to file. Even without an obligation, filing can pay off – for medical expenses, tradesperson services or donations.
Is an appeal about double taxation worthwhile? Only to a limited extent. What matters first is whether your assessment was issued provisionally. We check this for members as part of the assessment review.
Will I get back the tax on the energy price allowance? Only if the Federal Fiscal Court objects to the rule and your assessment is still open. So far the tax courts consider the taxation lawful.
Legal basis and sources
- Hessian Tax Court, judgment of 19 November 2025 – 4 K 698/22 (provisionally not final)
- Saxon Tax Court on taxing the energy price allowance for retirees (sec. 22 no. 1 sentence 3 letter c EStG), EFG no. 10/2026, p. 671 – appeal filed
- Münster Tax Court, judgment of 13 February 2026 – 4 K 64/23 E, appeal: BFH IX R 3/26
- Sec. 22 EStG, sec. 175b AO, RentEPPG
- BVL – Bundesverband Lohnsteuerhilfevereine e.V., technical bulletin no. 6/2026
Note: This article is for general information purposes and was carefully prepared by the editorial team at lexo.tax. Personal tax advice can only be provided within the scope of membership at lexo.tax – and exclusively to the extent permitted by law under sec. 4 no. 11 StBerG (from 1 September 2026: sec. 4 StBerG as amended).