The death of a spouse is associated with tremendous shock, significant stress, and a serious emotional blow. Nothing can replace that loss; however, the German state, in this difficult period of mourning, seeks to support its citizens and offers survivors’ pension benefits (for widows or widowers). These benefits can help cope with the financial changes ahead and secure a livelihood. The subject of widow’s pensions is quite complex, so in today’s article the more complicated issues surrounding the receipt of additional funds after the death of a partner are explained in more detail.
Taxation of old-age pension and widow’s pension – who is entitled?
The right to a widow’s pension is granted to persons whose deceased spouse was insured under the pension insurance scheme for at least five years. This period is referred to as the minimum insurance period if the partner had previously satisfied the qualifying period or was already receiving a pension. The second condition is being married to the partner until the time of death (it does not matter whether the couple lived together or separately), and the third is that the marriage must have lasted at least one year. A widow’s pension is not available in the following cases:
- lawful divorce,
- annulment of the marriage,
- the parties had previously only been engaged.
Taxation of widow’s pension – old and new law
In the German pension system, the old widow’s pension rule (Witwenrente) applies where the marriage was concluded before 2002 and at least one spouse was born before 2 January 1962. In that case, the small pension can be payable without time limit, and the large pension amounts to 60%, not 55%.
In addition, the so-called durability test for the marriage does not apply – even if the marriage lasted less than one year, the benefit may be granted, without suspicion that the marriage was entered into solely in order to obtain a pension. The date of death of the insured person is not of key significance here – decisive are the date of marriage and the age of the insured person.
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Tax – widow’s pension and the amount of the benefit
The amount of the widow’s pension depends primarily on whether the entitled person is eligible for the small or the large pension. To make it easier for the widow or widower to adjust to the changed financial situation, the widow’s pension is paid at the full amount of the insured person’s pension for the three calendar months following the month of death. These three months are often also referred to as the “quarter of death” – during this period the widow’s pension is paid in full, regardless of other income.
With a widow’s pension, do not focus only on the gross amount of the benefit, because in the end what matters is how much remains after tax, contributions, and own income are taken into account. The most common mistake is assuming that the widow’s pension will always be paid in full – in reality, an own old-age pension, employment, or private benefits may reduce it. Before submitting documents or deciding on a pension split, all income should be collected and the options should be checked using actual figures, because with German benefits the details really make a difference.
Tax on widow’s pension – small widow’s pension
The small widow’s pension may be received if the age of 47 has not yet been reached, the conditions for the large widow’s pension are not met, there is incapacity for work or a child is not being raised. Before it is granted, the German pension insurance checks what pension entitlements the deceased partner would have had at the time of death. After this procedure, 25% of that amount is paid. However, if the spouse died before reaching the age of 65, a deduction must be taken into account. Importantly— the small widow’s pension is limited to 24 calendar months from the death of the spouse, unless the old rules still apply; in that case, an unlimited small widow’s pension will be paid.
Taxation of widow’s pension – large widow’s pension
The large widow’s pension is granted if the widow/widower:
- has reached the required age (gradually increased from 45 to 47 years, ultimately 47 years from 2029), or
- is incapable of work, or
- is raising their own child or the deceased spouse’s child who has not yet reached the age of 18.
The amount of the large widow’s pension also depends on what pension entitlements would have been due to the deceased spouse. German pension insurance may also take into account the amount of the pension already being received. In the end, 55% of the insured person’s pension will be due. However, if the spouse dies before reaching the age of 65, the large widow’s pension will be reduced by a deduction.
Taxation of widow’s pension and remarriage
Upon remarriage, both the small and the large widow’s pension cease at the end of the calendar month in which the marriage was concluded – a one-time compensation benefit may be possible. In the case of a subsequent marriage, however, there is the possibility of applying for so-called pension settlement. In the case of the large widow’s pension, the pension settlement corresponds to two annual amounts of widow’s pension that were received on average over the last twelve calendar months. What determines the calculation is the amount of the pension after deduction of income, but before deduction of health insurance and long-term care insurance contributions. The quarter of the year in which death occurred is not taken into account in these calculations.
Taxation of widow’s pension and deduction of income
If, in addition to the survivor’s pension, there is also other income, for example from a private pension, then it will be counted toward the widow’s pension above the tax-free amount, up to 40%. German pension insurance calculates net income on the basis of gross earnings — if it exceeds the tax-free amount, 40% of the remaining net income is deducted from the pension. The deduction depends primarily on the exact amount of income. Each case is assessed individually. It should be noted that the widow’s pension is a so-called derivative benefit from the deceased’s pension insurance, which means that it is paid from the deceased person’s insurance. This means that if, for example, an old-age pension from an own insurance scheme is also received in addition to the widow’s pension, it will count as income and will be deducted from the survivor’s pension.
Taxation of widow’s pension and pension splitting
An alternative to the widow’s pension in Germany is the so-called pension splitting – the entitlements connected with it from the period of the marriage are divided equally between both parties. This solution is particularly advantageous for the partner with lower pension entitlements. Once pension splitting is chosen, it is not possible to return to the widow’s pension. All information on pension splitting can be found in the brochure “Pension Splitting – Splitting in Partnership” of the German Pension Insurance.
Before choosing pension splitting, however, both options should be carefully calculated, as the decision is binding and may affect the amount of future benefits. This solution is not always more favorable than the widow’s pension – especially where the deceased spouse had significantly higher pension entitlements. The safest course is to compare the expected amount of both benefits before submitting an application, so that no entitlement to the more favorable form of protection is lost.
Do you have to pay tax on the widow’s pension?
As a rule, the widow’s pension in Germany is subject to taxation like other benefits from the statutory pension insurance scheme. This does not, however, mean that every person will automatically pay tax. In 2026, for new benefits, 84% of the first full annual gross pension is taxable, and 16% remains the individual pension tax-free allowance. The final tax depends on the total income, contributions, costs, and the tax situation of the widow or widower.
With a widow’s pension, a distinction must be made between tax and the deduction of own income. If, in addition to the widow’s pension, an own old-age pension, salary, private pension, or other income is received, these may reduce the amount of the benefit. Until 30 June 2026, the monthly deduction-free amount is EUR 1,076.86, and from 1 July 2026 it increases to EUR 1,122.53. Only the excess above this limit is taken into account in the calculation, and 40% of that excess may reduce the widow’s pension.
FAQ
Is widow’s pension in Germany subject to taxation?
Yes, widow’s pension in Germany is generally subject to taxation, like other benefits from the statutory pension insurance scheme. However, this does not automatically mean that tax has to be paid, as the decisive factor is total income, deductible expenses, contributions, and the individual situation of the taxpayer.
How much of the widow’s pension is taxable in 2026?
For new benefits commencing in 2026, 84% of the first full annual gross pension is subject to taxation. The remaining 16% constitutes an individual tax-free amount for pension purposes and is determined as a fixed amount.
Does tax always have to be paid on widow’s pension?
Not always. Tax arises only when taxable income results after taking into account total income and deductions. In 2026, the German Grundfreibetrag, i.e. basic tax-free allowance, amounts to 12,348 euros for a single person.
Does one’s own pension reduce widow’s pension in Germany?
Yes, one’s own pension may be treated as income and affect the amount of widow’s pension. This does not always mean a loss of entitlement, but any amount exceeding the applicable limit may reduce the pension.
How much additional income may be earned alongside widow’s pension in Germany in 2026?
Until 30 June 2026, the monthly exemption amount for deductions is 1,076.86 euros. From 1 July 2026, it increases to 1,122.53 euros. Only income above this limit may be partially taken into account when calculating widow’s pension.
Does work in Germany affect widow’s pension?
Yes, employment income may affect the amount of widow’s pension if it exceeds the deductible allowance. Deutsche Rentenversicherung takes net income into account and may reduce the benefit by 40% of the amount exceeding the limit.
In the first months after the spouse’s death, does income reduce widow’s pension?
No, during the so-called quarter of death, widow’s pension is paid in full for three calendar months following the month of the spouse’s death. During this period, the widow’s or widower’s own income is not taken into account when reducing the benefit.
Is widow’s pension from Germany taxed in Poland?
This depends on tax residency, the type of benefit, and the double taxation treaty. In practice, persons residing in Poland should check whether the benefit is settled in Germany or requires additional declaration in Poland.
Which authority handles tax on a German pension if living outside Germany?
For many persons living outside Germany, the competent authority is Finanzamt Neubrandenburg, the office handling German pensions paid abroad. However, this does not apply to every case, so the competent tax office should be checked before submitting documents.
Does remarriage result in loss of widow’s pension?
Yes, after remarriage both the small and large widow’s pension expire at the end of the month in which the new marriage was concluded. In some cases, however, a one-time pension settlement payment may be claimed.
Maciej Szewczyk
He gained experience as a consultant on IT projects for many international companies. In 2017, he founded the startup taxando GmbH, where he developed the innovative tax app Taxando, which simplifies the filing of annual tax returns.
Maciej Szewczyk combines technological expertise with in-depth knowledge of tax regulations, making him an expert in his field. In his private life, he is a happy husband and father and lives with his family in Berlin.
