How can I reduce my church tax by claiming child benefit?
The amount of church tax depends on your place of residence. In Bavaria and Baden-Württemberg, church members pay 8 percent of the assessed income tax, while in other federal states it is 9 percent.
Please note: Church tax is also taken into account at the same rate for capital gains tax. For employees with child allowances in the electronic wage tax deduction features (ELStAM), church tax is calculated based on a so-called notional wage tax.
Church tax without child allowance: You live in Berlin and have a gross monthly salary of 3.000 Euro in tax class IV. Your monthly church tax is 29.63 Euro.
Church tax with two child allowances: You live in Berlin and have a gross monthly salary of 3.000 Euro in tax class IV. Your monthly church tax is now 11.21 Euro.
Important: Child allowances do not reduce the monthly income tax, but only reduce the monthly church tax and solidarity surcharge. This also applies if you receive child benefit at the same time.
Child allowances in the income tax return
In the income tax assessment, child allowances only reduce the taxable income if the tax advantage is greater than the child benefit received. However, for the calculation of church tax and the solidarity surcharge, the allowances are taken into account "notionally".
Advantage in case of mid-year change
Even if children are only to be considered for part of the year (e.g. in the case of birth or end of education), the full child allowance is always deducted for church tax and the solidarity surcharge.
