Its best to use it for every method intended as an override, and Java 6+, every method intended as an implementation of an interface.
First, it catches misspellings like "hashcode()" instead of "hashCode()" at compile-time. It can be baffling to debug why the result of your method doesn't seem to match your code when the real cause is that your code is never invoked.
Also, if a superclass changes a method signature, overrides of the older signature can be "orphaned", left behind as confusing dead code. The @Override annotation will help you identify these orphans so that they can be modified to match the new signature.
