Germany to increase Kindergeld child benefits from 2027

Germany is set to increase Kindergeld, the country's child benefit payments, starting in 2027. Monthly payments per child are scheduled to rise from the current 259 euros to 267 euros in 2027, and further to 272 euros in 2028.

This increase is part of a broader adjustment to the German tax system, which also includes updates to the Kinderfreibetrag, or child tax allowance. For families with multiple children, these adjustments will result in significant annual increases in total benefits.

During annual tax declarations, the Finanzamt automatically conducts a 'Günstigerprüfung' to determine whether Kindergeld or the tax allowance provides the most favorable benefit for the family.