The new IRS withholding tables for pensions once again change the net value of the pension that many pensioners take home, and 2026 is no exception, especially for those close to the exemption brackets. As pensions are not deducted from Social Security, the impact of these tables is essentially felt in the portion of IRS withheld every month.
With the tables published on January 6th, it is now possible to calculate what could change this year, bringing together two factors: the update of the gross pension value and the withholding tax applicable to each family situation. For some pensions, the difference may be short; in others, retention can “eat” part of the increase, according to Doctor Finance.
Why net pension could change in 2026
Contrary to what happens with salaries, there are no Social Security deductions for pensions. In practice, when talking about “net pension”, what varies is the IRS withheld at source, according to the tables in force and the type of household (for example, married with one or two pensioners).
This is why two people with the same gross pension can have different net values, depending on the framework, and it is also why exemptions make such a difference at the lowest levels.
Exemption up to 920 euros and special rules for disabilities
With the new tables, pensions up to 920 euros are exempt from withholding tax, aligning this level with the logic applied to lower incomes. In the case of disabled pensioners, with permanent disability equal to or greater than 60%, the exemption increases to 1,816 euros or 2,257 euros, depending on the number of people receiving income in the aggregate, according to the same source.
Annual update of the gross value of pensions
To realize the final value in 2026, it’s not enough to look at retention. It is necessary to add the update of the gross value, which for this year is indicated as follows: 2.8% for pensions up to 1,074.26 euros, with a minimum increase of 9.29 euros.
For pensions above 1,074.26 euros and up to 3,222.78 euros, the update is 2.27%, with a minimum increase of 30.08 euros. For pensions above 3,222.78 euros and up to 6,444.56 euros, the increase is 2.02%, with a minimum of 73.16 euros. Pensions above 6,444.56 euros remain frozen.
Simple simulations: pensions of 670 and 800 euros
Anyone who has a gross pension of 670 euros in 2026 receives the same net amount, as it is exempt from withholding. In this scenario, the pension increases by 18 euros compared to 2025, when it was 652 euros, after applying the 2.8% increase.
In pensions of 800 euros, the logic is the same: they are also at the exemption level, so the net value coincides with the gross. Before the 2026 update, this pension was 778 euros, which represents an increase of 22 euros, according to the previously cited source.
Below are the values presented for different situations, gathered in lists to facilitate reading.
Pension of 1,000 euros (gross in 2026)
- Gross pension in 2025: 973€
- Gross pension in 2026: 1.000€
- Not married/Married two holders: net in 2025: 968€; net in 2026: 979€difference: +11€
- Married, sole proprietor: net in 2025: 987€; net in 2026: 999€; difference: +12€
- Not married/Married two holders (with disabilities): net in 2025: 973€; net in 2026; 1.000€; difference: +27€
- Married, sole proprietor (with disability): net in 2025: 973€net in 2026: 1.000€; difference: +27€.
Pension of 1,200 euros (gross in 2026)
- Gross pension in 2025: 1.173€
- Gross pension in 2026: 1.200€
- Not married/Married two holders: net in 2025: 1.097€; net in 2026: 1.120€; difference: +23€
- Married, sole proprietor: net in 2025: 1.124€; net in 2026: 1.147€; difference: +23€
- Not married/Married two holders (with disabilities): net in 2025: 1.173€; net in 2026: 1.200€; difference: +27€
Pension of 1,500 euros (gross in 2026)
- Gross pension in 2025: 1.467€
- Gross pension in 2026: 1.500€
- Not married/Married two holders: net in 2025: 1.320€net 2026: 1.349€; difference: +29€
- Married, sole proprietor: net in 2025: 1.371€; net in 2026: 1.400€; difference: +29€
- Not married/Married two holders (with disabilities): net in 2025: 1.467€; net in 2026: 1.500€; difference: +33€.
How to use these values in your case
The quickest way to do the math, according to , is to start from your gross value, confirm which annual increase bracket the pension falls into and then apply the withholding provided for your family situation.
Anyone close to the exemption levels should pay extra attention, because small differences in the gross can completely change the retention and, consequently, the monthly net value.
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