What is the difference between the child tax allowance and Kindergeld?

Kindergeld (€259/month = €3,108/year in 2026) is paid out continuously. The child tax allowance (€9,756/year) is deducted from taxable income and reduces the tax burden. The tax office automatically checks in the so-called comparison test which variant is better for you for tax purposes (§ 31 EStG).

From what income is the child tax allowance worth it?

Under separate assessment, the child tax allowance becomes more favorable than Kindergeld alone from a taxable income of roughly €65,000–75,000. Under joint assessment with the splitting tariff, the crossover point shifts upward — usually only from a joint taxable income of around €90,000–100,000. At the top tax rate (42%), the allowance brings approx. €990 in extra savings per child per year.

What is the BEA allowance?

The BEA allowance (care, upbringing, training) has supplemented the basic child tax allowance since 2010. In 2026 it is an additional €2,928 per child per year (under joint assessment) or €1,464 (under separate assessment per parent). In total, therefore, a full allowance of €9,756 per child.

Who receives the single-parent relief amount?

Single parents who live in a household with at least one child for whom they receive Kindergeld, and who do not form a shared household with another adult. The amount is €4,260/year for the first child plus €240 for each additional child, and is automatically considered via tax class II.

Can I use the training allowance and the child tax allowance at the same time?

Yes. The training allowance (€1,200/year) is granted in addition to the child tax allowance, provided the child is of age, in vocational training or studies, and lives away from home (own flat at the place of study, a shared flat, a dormitory).

How do I transfer my child's disability lump sum to myself?

The transfer is done in the child annex (line 65) of the income tax return, stating the degree of disability (GdB) and submitting the disability card. Requirement: the child has no income of its own above the basic allowance (€12,096 in 2026).

Which allowance applies for children resident abroad?

For children resident abroad, tiered allowances apply according to the country groups set by the Finance Ministry. For EU/EEA states the full allowance is usually granted; for third countries it is reduced to 50, 75, or 100% (depending on the cost-of-living level).

Do I have to apply for the child tax allowance every year?

You must fill in the child annex (Anlage Kind) in every tax return with a child — that is the application. There is no "automatic" carryover from the previous year. State the child's tax ID, date of birth, and any special circumstances (residence abroad, disability, training).

How does the child tax allowance affect the solidarity surcharge and church tax?

The child tax allowance additionally reduces the assessment base for the solidarity surcharge and church tax — even when it is not applied for the income tax comparison test. That means: even if Kindergeld is more favorable, you still benefit from the allowance via the surcharge and church tax.

What happens if I have a child during the course of the year?

The child tax allowance is granted on a monthly basis — from the month of birth, 1/12 of €9,756 = €813 per month. For a birth in April, you therefore receive 9 × €813 = €7,317 of allowance for April–December. Kindergeld is likewise paid from the month of birth.

Tax Allowances for Children 2026 – All Tax Advantages at a Glance

Updated: May 2026. Families in Germany benefit from a multi-tier system of tax allowances: the child tax allowance, the BEA allowance, the single-parent relief amount, the training allowance, and the disability lump sum. Combine these correctly, and you can achieve several thousand euros in tax savings per child per year. This guide explains every allowance with calculation examples, the comparison test, and the typical mistakes.

At a glance (as of 2026)

Child tax allowance (Kinderfreibetrag): €6,828/year per child + BEA €2,928 = €9,756 total (§ 32 (6) EStG)
Single-parent relief amount: €4,260/year for the first child + €240 per additional child (§ 24b EStG)
Training allowance: €1,200/year for children in training who live away from home (§ 33a (2) EStG)
Disability lump sum: €384 (degree of disability 20) up to €7,400 (mark H/Bl) – transferable to parents
Comparison test: the tax office automatically compares Kindergeld (€3,108/year) against the tax saving from the allowance (§ 31 EStG)
Crossover point: from roughly €65,000–75,000 taxable income (separate assessment) the allowance becomes more favorable than Kindergeld alone
Last update: May 2026

1. The child tax allowance 2026 (§ 32 (6) EStG)

The Tax Development Act of 19.12.2024 raised the child tax allowance as of 1 January 2026:

Allowance	Per parent	Both parents (joint assessment)
Basic child tax allowance	€3,414	€6,828
BEA allowance (care, upbringing, training)	€1,464	€2,928
Total	€4,878	€9,756

The allowance is claimed in the child annex (Anlage Kind) of the income tax return and reduces taxable income. The actual tax saving results from the allowance amount × your personal marginal tax rate.

2. The comparison test (§ 31 EStG)

The tax office automatically checks whether Kindergeld (€3,108/year = €259 × 12) or the tax saving from the child tax allowance is more favorable for the family:

Marginal rate	Taxable-income range (separate)	Tax saving from allowance (€9,756)	Comparison to Kindergeld (€3,108)
14%	up to approx. €18,000	€1,366	Kindergeld more favorable (+€1,742)
24%	approx. €18,000 – 35,000	€2,341	Kindergeld more favorable (+€767)
32%	approx. €35,000 – 55,000	€3,122	allowance just more favorable (+€14)
42%	approx. €55,000 – 280,000	€4,098	allowance clearly more favorable (+€990)
45%	from approx. €280,000	€4,390	allowance clearly more favorable (+€1,282)

Important: you do not have to decide — the tax office automatically applies the more favorable variant for you. If you already receive Kindergeld monthly, you keep the payout; the tax saving is adjusted in the tax assessment by the Kindergeld already paid.

3. The single-parent relief amount (§ 24b EStG)

€4,260/year for the first child (since 2023)
€240/year for each additional child in the household
Automatically considered via tax class II
Requirement: genuinely living alone with the child, no shared household with another adult

Note: under tax class I (instead of II), the relief amount is only considered retroactively in the tax return. Single parents should therefore apply to the tax office in good time for a switch to tax class II.

4. The training allowance (§ 33a (2) EStG)

For adult children in vocational training or studies who live away from home:

€1,200/year per child
Applied for in the child annex of the income tax return
Granted in addition to the child tax allowance
Requirement: genuine accommodation away from home (own flat at the place of study, a shared-flat room, a dormitory)

5. The disability lump sum (§ 33b EStG)

For children with a disability, tiered by the degree of disability (Grad der Behinderung, GdB):

GdB	Annual lump sum
20	€384
30	€620
50	€1,140
70	€1,780
80	€2,120
90	€2,460
100	€2,840
Marks H, Bl, TBl	€7,400

The lump sum can be transferred to the parents if the child has no income of its own, or that income is below the basic allowance (€12,096 in 2026).

Case study 1 – the Schneider family (Cologne, 1 child, separate assessment, €80,000 taxable income)

Anna Schneider lives separated, has a 6-year-old child, and a taxable income of €80,000. Marginal rate: 42%.

Child tax allowance (half, separate assessment): €4,878
Tax saving: €4,878 × 0.42 = €2,049 + solidarity surcharge €113 = €2,162
Kindergeld: €3,108/year (already received monthly)
Result: Kindergeld is €946 more favorable. Anna keeps the Kindergeld; the tax assessment stays unchanged.

In addition, Anna receives the relief amount of €4,260 via tax class II, which at her marginal rate brings around €1,789 in tax savings per year.

Case study 2 – the Hoffmann couple (Munich, 2 children, joint assessment, €150,000 taxable income)

Maria and Stefan Hoffmann are married, have two children (aged 4 and 8), and a joint taxable income of €150,000. Marginal rate: 42%.

Child tax allowance (full amount under joint assessment): 2 × €9,756 = €19,512
Tax saving: €19,512 × 0.42 = €8,195 + solidarity surcharge approx. €451 = €8,646
Kindergeld: 2 × €3,108 = €6,216
Result: the child tax allowance is €2,430 more favorable. The tax office offsets the Kindergeld already paid, so the family receives an additional €2,430 in tax refund.

Case study 3 – the Yilmaz family (Berlin, single parent, 1 child aged 3, €35,000 taxable income)

Aylin Yilmaz lives alone with her 3-year-old daughter Mira, taxable income €35,000. Marginal rate: 24%.

Tax class II → relief amount €4,260 already considered monthly → approx. €1,022 less wage tax per year
Child tax allowance (half): €4,878
Tax saving from the allowance: €4,878 × 0.24 = €1,171
Kindergeld: €3,108
Result: Kindergeld is €1,937 more favorable than the allowance. Aylin keeps the Kindergeld + receives the relief amount → combined tax advantage approx. €4,130/year.

What happens if …

… my taxable income is above the table range? At taxable income > €280,000 (separate) or €560,000 (joint), the top tax rate of 45% applies. The child tax allowance is always more favorable here — up to €1,282 in extra savings per child per year compared with Kindergeld.
… I have a child only during the current year? The full allowance is available on a monthly basis — for each month from birth, 1/12 of €9,756 = €813. For a birth in April 2026, that is 9 × €813 = €7,317.
… my adult child earns a training wage? The child tax allowance stays unchanged as long as the child is under 25 and in initial training. Own income reduces neither the Kindergeld nor the allowance (since the income limit was abolished in 2012).
… I am assessed separately? Each parent gets half the allowance (€4,878). A transfer of the full allowance to one parent is possible if the other does not meet at least 75% of their maintenance obligations (application in the child annex, line 38).
… my child lives abroad? If the child has its residence abroad, tiered allowances by country group apply (the Finance Ministry's "country group" circular). For EU states often full, for third countries reduced to 50–75%.

Common mistakes and how to avoid them

Mistake	Consequence	How to avoid
Tax class I instead of II as a single parent	relief amount only considered in the tax return	apply for a tax class switch at the tax office right after separation
Child annex not filled in	the child tax allowance is not checked	attach the child annex to every tax return with a child
Forgetting the training allowance for students living away	€1,200 allowance forfeited	fill in line 51 of the child annex with the study-location address
Disability lump sum not transferred to parents	tax saving left unused	entry in the child annex, line 65, with a copy of the disability card
Double application by separately assessed parents	processing halt	agreement between the parents or a family court ruling

Reference to the calculator

Calculate your specific comparison test with our Kindergeld vs. child tax allowance calculator 2026 – it delivers the tax saving per variant based on your actual taxable income in seconds. For the monthly Kindergeld amount, use the Kindergeld calculator. For a holistic overview of all benefits, the family benefits check is the place to start.

Sources

§ 31 EStG – family benefit equalization, comparison test
§ 32 (6) EStG – child tax allowance + BEA allowance 2026
§ 24b EStG – single-parent relief amount
§ 33a (2) EStG – training allowance
§ 33b EStG – disability lump sum
Tax Development Act of 19.12.2024 (Federal Law Gazette I No. 449)
Finance Ministry circular on the country-group classification (children abroad)
BMFSFJ Familienportal – tax support for families

Note: This overview has been editorially reviewed but does not replace tax advice within the meaning of § 2 StBerG. For complex situations (children abroad, patchwork families, adoption, multiple disability lump sums), consult a tax adviser.

In practice: when is it worth applying to transfer the half allowance?

For separately assessed parents, each is generally entitled to half the child tax allowance (€4,878 per child, as of 2026). An application to transfer the full allowance to one parent (child annex, line 38) is worth it above all when the other parent meets less than 75% of their maintenance obligation, or lives permanently abroad and is not taxable there.

Example, the Wagner family: Petra Wagner from Düsseldorf is separated from her ex-partner Klaus, who has moved to Spain and has paid no maintenance for 18 months. Petra applies for the full child tax allowance (€9,756) to be transferred to her. At her marginal rate of 32%, the tax saving comes to around €3,122 – that is €1,561 more than under the half split. Add to that the full offset of Kindergeld against the allowance in the comparison test. Overall, Petra benefits by about €1,560 per year through the transfer application.

Key point: the application requires formal proof (e.g. reminders, enforcement orders, a written residence certificate for the other parent). When the maintenance-obligated parent frequently changes residence, it is advisable to reapply annually and gather the evidence over the course of the year.

Tax Allowances for Children in Germany 2026: All the Tax Advantages