Parents will be able to claim a higher share of their childcare costs as a tax deduction in the future.
What is changing
Until now, two thirds of childcare expenses, but no more than EUR 4,000 per child, can be claimed as special expenses.
The limit of two thirds of expenses is being raised to 80% of expenses, and the maximum amount to EUR 4,800.
Entry into force
This applies from the 2025 assessment period.
Child benefit: applications to be filed electronically wherever possible
Child benefit (Kindergeld) should, wherever possible, only be applied for electronically.
What is changing
The revised version of § 67 sentence 1 EStG takes into account that electronic applications are increasingly being filed and are to be encouraged.
As a result, electronic filing becomes the standard. Electronic filing is to be permitted only via the officially prescribed data set through the officially prescribed interface. A simple email will no longer suffice. However, filing an application in paper form is still permitted.
Entry into force
Applies to applications received after the date the law is promulgated.
Frequently asked questions
Frequently asked questions
What percentage of childcare costs is tax-deductible from 2025?
Starting with the 2025 assessment period, parents can claim 80% of their childcare costs as special expenses (Sonderausgaben). Previously, only two-thirds of the expenses were deductible. As a result, a higher share of the actual costs is recognized for tax purposes.
What is the maximum deductible amount for childcare costs from 2025 onwards?
Effective from the 2025 assessment period, the maximum deductible amount for childcare costs will be raised from EUR 4,000 to EUR 4,800 per child. This figure represents the upper limit for the special expenses deduction per child and year.
When do the new rules on the deduction of childcare costs apply?
The increase to 80% of expenses and the new maximum amount of EUR 4,800 per child apply for the first time from the 2025 assessment period. For earlier assessment periods, the two-thirds rule and the maximum amount of EUR 4,000 continue to apply.
Will child benefit (Kindergeld) have to be applied for electronically in the future?
Under the revised § 67 sentence 1 EStG, electronic application will become the standard. It must be submitted using the officially prescribed dataset via the officially prescribed interface; a simple email is no longer sufficient. However, paper applications remain permissible.
When does the new rule on electronic child benefit applications take effect?
The new rule applies to child benefit applications received after the date the law is promulgated. Applications submitted before that date remain subject to the previous rules.