Child Allowance for 2026: €9,756 or Child Benefit of €259
The Family Benefits Office makes monthly payments. The tax office compares the figures in the tax assessment notice. In 2026, child benefits will amount to €259 per child per month, compared to a child allowance of €9,756 per set of parents. Two figures, one comparison—and in the end, only one of the two options applies.
In 2026, child benefit will be 259 euros per child per month (2025: 255 euros). The child allowance is 9,756 euros per parental couple, including the credit for care, upbringing, and education (2025: 9,600 euros). In the tax assessment, either the child benefit or the tax-free allowance applies; if tax-free allowances are deducted, the child benefit is added to the tax liability.
- Child benefit: €259 per child per month in 2026, €255 in 2025 (Section 66 of the Income Tax Act).
- Child allowance, including the childcare, child-rearing, and education tax credits: €9,756 per set of parents in 2026, €9,600 in 2025.
- The tax office compares tax exemptions and child tax credits; when the tax exemptions are deducted, the child tax credit is added to the tax liability (Section 31 of the Income Tax Act).
- Children over the age of 18 are eligible under certain conditions if they are enrolled in an educational program until the age of 25 (Section 32(4) of the Income Tax Act).
- In the case of separated parents, the parent with whom the child lives receives the child benefit. If a parent receives only half of the tax-free allowance, only half of the child benefit is added to their income.
How much will child benefit be in 2026?
In 2026, child benefit will amount to €259 per month for each child (Section 66(1) of the Income Tax Act (EStG)). In 2025, the amount was €255. Both amounts were established by the Tax Reform Act, which the Bundestag passed on December 19, 2024.
Those who are already receiving child benefit do not need to apply for the increase. The family benefits office will adjust the amount automatically. Child benefit is tied to the tax-free allowances: if they are raised, the benefit increases accordingly, rounded to the nearest whole euro for administrative purposes. On an annual basis, this amounts to €3,108 per child, or €259 per month.
Child Benefit 2026
259 € per month255 € in 2025. It is paid by the Family Benefits Office (Section 66 of the Income Tax Act).
Child allowance 2026
9,756 € per set of parents9,600 € in 2025. This amount includes the tax-exempt allowance for care, upbringing, and education (Section 32(6) of the Income Tax Act).
How much will the child allowance be in 2026?
In 2026, the child allowance will amount to €9,756 per set of parents. It consists of two parts: €6,828 for the child’s basic subsistence needs and €2,928 for the child’s care, upbringing, or education. The law specifies the amounts per parent: €3,414 and €1,464. For married couples who file a joint tax return, these amounts are doubled if the child is the legal child of both parents (Section 32(6) of the Income Tax Act (EStG)).
Those who are not taxed jointly receive the amounts per parent: €4,878 in 2026. A parent is entitled to double these amounts if the other parent has died or is not subject to unlimited income tax liability, if the parent has adopted the child alone, or if the child is in a foster care relationship with that parent only.
BEA Exemption Amount – The tax exemption for a child's care, upbringing, or education needs. It is already included in the total amount of €9,756 per set of parents.
Child Benefits and Child Allowance in 2025 and 2026
| 2025 | 2026 | |
|---|---|---|
| Child benefit per child per month | €255 | €259 |
| Child Benefit per Child per Year | €3,060 | €3,108 |
| Total child allowance per set of parents | €9,600 | €9,756 |
| Child Allowance per Parent (General Rule) | €4,800 | €4,878 |
The annual child benefit amounts are calculated as 12 months × the monthly amount; each parent receives half of the total amount. Sources: Section 66 and Section 32(6) of the Income Tax Act (EStG), Bundestag (Tax Development Act). As of October 2026.
How does the "more favorable" rule apply when comparing child benefit and the tax-free allowance?
Child benefits and tax-exempt allowances are intended to serve the same purpose: to exempt the child’s minimum subsistence level from taxation (Section 31 of the Income Tax Act (EStG)). Section 31 of the Income Tax Act (EStG) determines which approach ultimately applies: If the tax-free allowances have a greater effect than the child allowance, they are deducted, and the entitlement to child allowance is added to the tax calculated in this way. If the child allowance has a greater effect, it remains as is. Both cannot be claimed together.
The tax relief provided by the tax-free allowance depends on the personal tax rate applied to the last euros earned—the marginal tax rate. The higher the marginal tax rate, the greater the benefit from the same tax-free allowance.
The Most-Favored-Nation Treatment Test in Three Steps
Calculate taxes using tax exemptions
The tax office deducts the child allowance and the BEA tax credit from income and calculates the tax based on the applicable tax bracket.
Include child support
In addition to this tax, there is a claim to child allowance for the year 2026, amounting to €3,108 per child for twelve months (Section 31, Sentence 4, EStG).
Compare the two approaches
If the tax, including the additional amount, is lower than the tax without the tax credits, the tax credits apply. Otherwise, the child benefit remains unchanged.
Model Calculation: Tax Exemption vs. Child Tax Credit with Two Tax Rates
- Tax Year 2026, one child, parents assessed jointly
- The €9,756 tax-free allowance is assessed using a single marginal tax rate for simplicity's sake
- The solidarity surcharge and church tax are excluded; the assessment is calculated according to the tax rate specified in § 32a of the Income Tax Act (EStG)
| Child Benefit 2026: 12 × €259 | €3,108 |
| Tax-free allowance at a 30% marginal tax rate: 9,756 € × 30% | €2,926.80 |
| Tax-free allowance at a marginal tax rate of 42%: 9,756 € × 42% | €4,097.52 |
| Tie at a set of 3,108 € ÷ 9,756 € | about 31.9% |
| Results of the model calculation | 30%: Child benefits have a greater impact. 42%: The tax exemption has a greater impact. |
There is no fixed income threshold above which the tax exemption applies. In this simplified calculation, the threshold corresponds to a marginal tax rate of approximately 31.9 percent. The actual comparison is based on the tax calculation performed by the tax office.
Until when are child benefits and the child allowance available?
A child is considered a dependent until the age of 18 (Section 32(3) of the Income Tax Act). After that, it depends on the child’s living situation (Section 32(4) of the Income Tax Act):
Until the child reaches the age of 21, provided the child is not employed and is registered as a job seeker with a local employment agency in Germany.
Until the child reaches the age of 25, if the child is in training, is in a transitional period, is unable to begin training due to a lack of training positions, or is performing one of the types of volunteer service specified by law.
There is no age limit if the child is unable to support himself or herself due to a disability and the disability arose before the child reached the age of 25.
After completing initial vocational training or a first degree, the child is considered a dependent until age 25 only if he or she is not engaged in gainful employment. Working up to 20 hours per week, being in an apprenticeship, or holding a part-time job does not affect this status.
What are the rules for separated parents?
Child benefit is paid to only one eligible recipient for each child (Section 64(1) of the Income Tax Act (EStG)). If there are multiple eligible recipients, the person who has taken the child into their household receives the child benefit (Section 64(2) of the Income Tax Act). If the child lives in the parents’ shared household, they must agree among themselves who will receive the child benefit. If they fail to reach an agreement, another authority will make the determination.
As a general rule, each parent is entitled to half of the tax-free allowance; in 2026, this amounts to €4,878 per child. If the parents are not assessed jointly, the child benefit entitlement is calculated only up to the amount of the child allowance: Only half the child allowance is added to half the child allowance. Upon request, the child allowance may be transferred to one parent if that parent substantially fulfills their child support obligation and the other parent is not obligated to provide support, or is not obligated due to lack of financial means (Section 32(6), Sentence 6, EStG). For minor children, the BEA allowance may also be transferred upon request. The other parent may object if they bear child care costs or regularly provide a significant amount of care for the child.
What should be included in a tax return?
You apply for child benefit at the appropriate family benefits office, not at the tax office. The application is submitted electronically; however, the family benefits office may waive this requirement if you submit it in writing and sign it by hand. The tax credits apply as part of the income tax assessment. To claim them, you must list your children on your tax return using the “Anlage Kind” form.
Which of the two effects prevails is determined by the comparison provided for in § 31 of the Income Tax Act (EStG).
It won't work without an identification number, but it can be done retroactively
For a child to be included, they must be identified by their tax identification number. If the child is not subject to taxation, another suitable form of identification is sufficient. If the number is assigned later or the child is identified later, this applies retroactively to the months in which the other requirements were met. This applies, for example, to newborns and children who have moved here from abroad.
Child benefit and the tax-free allowance are not two separate payments
If the tax exemptions are deducted, the tax increases by the amount of the child tax credit. The benefit of the tax exemption is the difference, not the full amount.
Quick question, quick answer.
Do I need to file an application to have the child allowance taken into account?
You apply for child benefit at the family benefits office. The tax-free allowance is applied through your tax return; to claim it, you must list your children on the “Child” form. Comparing the two methods under Section 31 of the Income Tax Act (EStG) is part of the tax assessment process.
At what income level does the tax exemption become more advantageous than the child tax credit?
This depends on the marginal tax rate, not on a fixed income threshold. In the simplified model calculation for 2026, the break-even point is around 31.9% because €3,108 in child benefits per year is offset by a €9,756 tax exemption.
Am I eligible to receive both child benefits and the child allowance?
No. If the tax-exempt allowances are deducted, the tax increases by the amount of the child tax credit. The difference remains as a benefit.
Do I need to reapply for the child benefit increase in 2026?
No. If you are already receiving child benefit, you do not need to do anything. Child benefit is linked to the tax-free allowances: if they are raised, the benefit increases accordingly, rounded to the nearest whole euro for administrative purposes. The family benefits office will therefore automatically adjust the amount to €259.
Who receives child support when parents are separated?
Only one eligible person. According to Section 64(2) of the Income Tax Act (EStG), this is the person who has taken the child into their household. If the child lives in the parents’ shared household, the parents themselves decide who receives the child benefit.
Up to what age is child benefit paid for a child in school or training?
Until the child reaches the age of 25 (Section 32(4) of the Income Tax Act (EStG)). After completing initial vocational training or a first degree, only if the child is not engaged in gainful employment; up to 20 hours per week, an apprenticeship, or a mini-job do not affect eligibility.
Sources & Legal Basis
- Income Tax Act, Section 31 (Family Benefits Adjustment) – § 31 EStG (October 2026)
- Income Tax Act, Section 32 (Children, Tax Exemptions for Children) – § 32 Abs. 3, 4 und 6 EStG (Version effective January 1, 2026 (Tax Development Act, Federal Law Gazette 2024 I No. 449))
- Income Tax Act, Section 64 (Concurrence of Multiple Claims) – § 64 EStG (October 2026)
- Income Tax Act, Section 66 (Amount of Child Tax Credit) – § 66 Abs. 1 EStG (Effective January 1, 2026)
- German Bundestag: Bundestag Increases Child Benefits and Tax Deductions (Tax Reform Act) – Steuerfortentwicklungsgesetz, beschlossen 19.12.2024 (19.12.2024)
- Federal Employment Agency: Child Benefits to Increase in 2026 – Familienkasse (2026)
Change History
- October 8, 2026Post created (draft).
- October 9, 2026Technical review incorporated.
This article is intended to provide general information and does not constitute tax advice for specific cases. For binding information, please contact your local tax office.
Reviewed by expertsSven Schilling
Tax expert- Bachelor of Business Administration (University of Applied Sciences)
- Over 30 years of experience in accounting and tax firms
- Board Member of an Income Tax Assistance Association
Reviewed on October 9, 2026. If there are any changes to the law, this post will be reviewed again.
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