Child allowance vs. child benefit
In Germany parents receive either child benefit (Kindergeld) or the child tax allowance (Kinderfreibetrag) – the tax office automatically checks which is more favourable.
Child benefit 2025:
• €255 per child per month (the same for all children)
• = €3,060 per year
• Paid monthly by the Familienkasse (family benefits office)
• Independent of income – EVERY family gets it
Child tax allowance 2026:
• €6,828 child allowance + €2,928 allowance for care/upbringing
• = €9,756 per child (total, for joint assessment)
• Deducted from taxable income
When is the allowance worthwhile?
• Married couples: from approx. €75,000–80,000 gross annual income
• Single people: from approx. €40,000 gross annual income
• Below that: child benefit is more favourable
The best part: you don't have to choose! The tax office carries out the more-favourable-option check automatically and always grants the better variant.
Applying for child benefit: at the Familienkasse of the Federal Employment Agency. Online via familienkasse.de. Paid up to age 25 (during training/studies).
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