What do families gain from the increase in child allowances and raised tax exemptions in Germany?

The increase in child allowances and tax exemptions is one of the most important forms of financial support relied upon by thousands of Arab communities living in Germany.

With the anticipated changes in 2026, families are increasingly asking what will actually change and how they can make the most of these adjustments.

What is meant by the increase in child allowances in Germany?

The increase in child allowances in Germany refers to raising the monthly financial support known as Kindergeld, which families receive for each child residing in Germany.

The purpose of this increase is to help families cope with rising living costs, particularly in areas such as housing, education, and children’s daily needs.

Does the increase apply to all Arab families in Germany?

Yes, the increase in child allowances in Germany applies to all families legally residing in the country, including the following:

• Arab families with legal residence permits.
• Recognized refugees.
• Families with work or study permits.

German authorities clarified that nationality is not a requirement for receiving the allowances, as long as all eligibility criteria are met.

How much is the expected increase in child allowances?

The increase ranges from 5% to 10% per child, directly affecting the family’s monthly income, amounting to approximately €255 to €259 per month for each child.

Although the exact increase varies depending on each family’s situation, it is intended to help with:

• Covering part of the school expenses.
• Contributing to daily childcare costs.
• Alleviating the financial burden on low-income families.

To find out the payment date, you can check the Bundesagentur für Arbeit website or your bank statements, as the date varies from family to family depending on the last digit of the child allowance file number.

What are the tax exemptions available for families?

Tax exemptions are portions of a family’s income that are not subject to national taxation. They complement child allowances and enhance their overall benefit.

With the implementation of Germany’s decision to raise these exemptions, families will receive several benefits, including the following:

• Reducing annual taxes.
• Increasing net income.
• Additional support for families with multiple children.

Is the tax exemption better than child allowances?

It cannot be definitively said whether the tax exemption is better than child allowances or vice versa, because in Germany it is calculated automatically based on the family’s situation, choosing whichever is more beneficial—whether the monthly child allowances or the annual tax exemption.

This system is considered the most convenient for families in Germany, especially those with limited tax knowledge, as they do not need to submit separate applications—the tax authorities automatically select the most beneficial option for them.

The basic exemption per child amounts to €6,828, with the addition of the fixed exemption for care, upbringing, and education, bringing the total exemptions to approximately €9,756 per child.

How Can Arab Families Fully Benefit from These Changes?

To ensure maximum benefit from Germany’s new decisions regarding increased child allowances or raised tax exemptions, families must meet a set of basic requirements, including the following:

• Updating children’s information with the Familienkasse (Child Allowance Office).
• Submitting the annual tax declaration on time.
• Keeping study or training documents for children over 18 years old.

Why Are Child Allowances and Tax Exemptions Particularly Important for Arab Communities?

Child allowances and tax exemptions are considered the primary support for financial stability for Arab communities in Germany.

This is because these communities often rely on a single income while facing high rents and overall living costs.

Therefore, any increase represents a genuine opportunity for Arab communities to improve their financial situation.

Frequently Asked Questions About the Increase in Child Allowances and Raised Tax Exemptions

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