How Do Child Benefit (Kindergeld) and Child Allowance (Kinderfreibetrag) Work?
In Germany, the state supports families with children in two ways: through a monthly cash payment called **Child Benefit (Kindergeld)**, or through a tax deduction called the **Child Tax Allowance (Kinderfreibetrag)**. You cannot get both benefits in full. Instead, the tax office (Finanzamt) automatically performs a **favorability test (Günstigerprüfung)** in your tax return.
For detailed calculations, you can use our free child benefit calculator.
Child Benefit (Kindergeld) in 2026
Since January 2025, Kindergeld is a flat **255 € per child, per month** (3,060 € per child, per year) regardless of the number of children. It is paid by the family benefits office (Familienkasse).
Child Tax Allowance (Kinderfreibetrag) in 2026
For 2026, the total annual allowance is **9,540 € per child** (for married couples filing jointly). It consists of:
- Child Allowance (sächliches Existenzminimum): 6,612 €
- Care, Education, and Training Allowance (BEA-Freibetrag): 2,928 €
How the Favorability Test (Günstigerprüfung) Works
When you file your tax return, the tax office calculates your tax liability in two scenarios:
- Scenario A: You keep the received Kindergeld, and no Child Allowance is applied.
- Scenario B: The Child Allowance is subtracted from your income, but your calculated tax is increased by the Kindergeld you already received.
If the tax savings in Scenario B are higher than the Kindergeld, the allowance is applied, and you receive the difference as a tax refund.
At What Income Level Does the Child Tax Allowance Become Advantageous?
The Child Allowance usually becomes more beneficial than Kindergeld for higher earners. Approximate thresholds for 2026:
| Filing Status | Number of Children | Annual Kindergeld | Advantageous from zvE* | Approx. Gross Salary |
|---|---|---|---|---|
| Single (Einzelveranlagung) | 1 Child | 3,060 € | approx. 73,000 € | approx. 85,000 € |
| Married Joint (Zusammenveranlagung) | 1 Child | 3,060 € | approx. 82,000 € | approx. 105,000 € |
* *zvE (zu versteuerndes Einkommen)* is your taxable income after all deductions, which is significantly lower than your gross income.
Sources: § 31, § 32 EStG, § 66 EStG, Federal Ministry of Finance guidelines, as of 2026.