As a parent, you probably know how exhausting taking care of a child can be. Sleepless nights and sore muscles are a common occurrence. Additionally, there are financial considerations that can make childcare very expensive. Fortunately, the German tax system offers the opportunity to claim certain tax deductions related to child-rearing. Can the kindergarten fee be stated in the tax return? Or perhaps the childcare allowance? Discover the most important information and check how you can claim childcare costs as tax-deductible in Germany.
Claim childcare costs are deductible in Germany
In 2012, a change in law proved helpful for parents raising children in Germany. The legislator simplified the deductibility of childcare costs simplified. What does that mean in practice?
Since 2025, parents can claim 80% of childcare costs as tax-deductible, with the maximum deduction per child and year being €4,800.
Refund of childcare costs in the tax return – Legal conditions
The tax deductibility of childcare is not available to all parents, however. The conditions determining who can claim the deduction are legally regulated (§ 10 Abs. 1 Nr. 5 Income Tax Act). Consequently, the deduction is possible if:
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- the child is your own child or a stepchild; the costs for the care of grandchildren are not deductible.● the child must belong to your household; for separated parents, it is decisive where the child is mainly registered.,
- the child must not be older than 14 years
If the child has a disability, the age limit does not matter – provided the disability occurred before the age of 25.
If all conditions are met, you can apply for a tax refund for childcare costs in Germany. However, if you do not wish to wait for a refund for ongoing expenses, you can apply for an allowance at the tax office. In this case, the employer should withhold taxes from your salary, so that the monthly net payment is higher.
Which childcare costs can I deduct?
The deductibility of childcare costs is possible for expenses related to childcare:
- with the placement of a child in a kindergarten, nursery, or after-school care,
- with a boarding school,
- with employing a caregiver,
- with childcare in your own home by a household help or an au pair,
- with services for caregivers (travel costs, accommodation, meals).
Important: If the au pair supports you both in managing the household and caring for the children, the incurred costs must be split equally. In practice, this means that only half of the expenses directly related to childcare are deductible.Costs can be deducted.
Which childcare costs can I deduct?
From the tax office’s perspective not all activities are related to childcare, so they cannot be treated as special expenses and deducted from taxes. What can you indicate as childcare costs in your tax return in Germany? (Childcare costs) These include expenses for:
- Tutoring,
- School fees,
- Sports and leisure activities,
- Music lessons,
- School trips,
- Camps.
Parents can claim 30% of school fees as a special expense for tax purposes, up to a maximum of €5,000 per year. But important: Expenses for accommodation and meals are excluded from deductibility.
Proof of childcare costs – what do you need to present to the office?
How do you get a tax refund for the childcare costs in Germany? The basis for this is submitting a tax return. In addition to the tax return, the tax office often requires additional forms to prove that you incurred these expenses. If you are claiming a tax deduction, please keep this on hand for precaution:
- Invoices from a service provider, e.g., a kindergarten,
- Bank statements (proof of payments to the accounts of the service providers),
- an employment contract if you are/were the employer of the person caring for your children in a mini-job or a regular employment relationship.
Childcare in Germany by relatives – how is this handled tax-wise?
You can hire your family to take care of your child. If the care is paid, you can deduct the costs under certain conditions from your taxes – just like other caregivers, namely ⅔ of the total amount. However, it is very importantto have evidence, it is advisable to make an agreement with your relative on the care of your child. It is also necessary to transfer the money to an account. Is the care free? You can still deduct travel expenses.
In addition to the tax deductibility of childcare costs, parents should also check whether they are eligible for other government benefits. This includes, among others, the Child Bonus 2025, which is paid as additional financial support for families with children. This one-time payment can significantly relieve the family budget.
Do you need help with your tax return from Germany? Try the Taxando app and enjoy safe, fast, and high-quality tax refunds directly to your account. Don’t worry about formalities and administrative procedures, but take advantage of the PREMIUM package and the help of an experienced tax advisor.
Maciej Szewczyk
He gained experience as a consultant on IT projects for many international companies. In 2017, he founded the startup taxando GmbH, where he developed the innovative tax app Taxando, which simplifies the filing of annual tax returns.
Maciej Szewczyk combines technological expertise with in-depth knowledge of tax regulations, making him an expert in his field. In his private life, he is a happy husband and father and lives with his family in Berlin.
