Families can look forward to a further increase in child benefit: the benefit will not only rise by five euros next year, but will total 259 euros per child from 2026.
Child benefit is set to rise by a further four euros to 259 euros in 2026. This is stated in a letter amending the draft bill for the 2025 federal budget, which the German Press Agency has received. The newspaper “Welt” was the first to report on this.
“With effect from January 1, 2026, child benefit will be increased by a further four euros from EUR 255 to EUR 259 per month for each child,” says a document on the cabinet’s draft of the federal budget. So far, only the already publicly announced increase in child benefit from January 1, 2025 from EUR 250 to EUR 255 per month had been noted in the draft law.
Significant increase in child benefit since 2022
Child benefit was last increased significantly on January 1, 2023. Previously, families had only received 219 euros each for the first and second child. Compared to 2022, this means an increase of 40 euros for the first two children from 2026.
According to dpa information, the increase in child benefit is to be implemented in the second annual tax law, which is to be passed by the cabinet in July. This also stipulates the gradual increase in the child allowance from 6,612 euros this year to 6,672 euros next year and then to 6,828 euros in 2026. If the separate allowance for the care and education needs of children is added, this results in an increase in the allowance to a total of 9,600 euros in 2025 and then to 9,756 euros in 2026.
The increase in the child allowance, like the increase in child benefit, is part of the federal government’s budget agreement, which the cabinet formally approved this Wednesday. The aim is to increase child benefit and the allowance at the same time from 2026.
Child allowance and child benefit relevant for tax burden
The child allowance is relevant because it can provide tax relief for the expenses that families incur because of children. It is deducted from the parents’ taxable income. If it increases, the income on which taxes are due decreases – and consequently the parents’ tax burden. It should be noted that child benefit and the child allowance are linked and it is only possible to claim one of the two for tax purposes. The tax office automatically checks which is ultimately more advantageous for the parents.
Source: Stern
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