What is the child allowance?
Child benefit and child allowance provide tax relief for parents to help offset the financial burdens of having a child. The entitlement to child benefit exists automatically from birth, but must be applied for in writing – usually at the family benefits office.
Important: The entitlement to child benefit or the child allowance is not for the child, but for the parents or guardians.
Child Benefit
Child benefit is paid monthly and is tax-free. The amount depends on the number of children. It is usually transferred by the family benefits office to the parents' account.
Child Allowance
The child allowance is not paid out but deducted from taxable income during income tax assessment. It thus reduces the tax burden.
Child benefit is considered an advance payment on the child allowance. The tax office automatically checks during the tax assessment which is more favourable for the parents – child benefit or allowance (→ favourable assessment).
Child allowances in 2025:
- 6.672 Euro for jointly assessed parents
- 3.336 Euro per parent for individual assessment
- 2.928 Euro BEA allowance (for care, education and training)
Duration of Entitlement
There is an entitlement to child benefit or child allowance:
- until the child's 18th birthday
- until the age of 25 if the child is in education, training or voluntary service
- Indefinitely if the child is disabled and cannot support themselves
