profile

GermanPedia

More money in 2025 - Child allowance, tax-free allowance, and more

Published about 2 years ago • 5 min read

New here? Check out GermanPedia​
Did someone forward you this? Subscribe to this newsletter.

Your unfair advantage in Germany

​

You can expect more money in 2025

The German government has reacted to the high inflation by increasing allowances and subsidies in different areas.

Here is an overview

Child benefits (Kindergeld)

  • The child benefits (Kindergeld) will increase by 5€ per month to 255€* in 2025. So, parents of minor children can expect 60€ more per annum per child in 2025.

Child allowance (Kinderfreibetrag)

  • The child allowance (Kinderfreibetrag) will increase to 9600€* for married couples in 2025. It is 9312 € in 2024.
  • The government is also planning to increase the child allowance to 9540€* (married couples) retroactively for 2024.

Tax-Free allowance

  • The tax-free allowance will increase by 300€ to 12,084€* in 2025.
  • The German government is also planning to increase the 2024 tax-free allowance retroactively. The proposal is to increase the sum by 180€ to 11,784€*. It's currently 11,600€. If the proposal is accepted, you'll recieve a higher salary in Dec. 2024. It'll include the tax refund for all the previous months of 2024.

*The increases have been planned but have not yet been approved.

Visualization of the week

Based on our recent survey, 22% of the 2600 participants left or are thinking of leaving Germany due to the language. For 14%, integration is the biggest reason to leave Germany.

Settling into a new country with a different language is tough. As an expat myself, I can relate to the challenges many face. This is why we created GermanPedia - to offer expats access to all the tools and knowledge in English that the locals have.

What are we working on in GermanPedia?

We are on a journey to offer expats access to all the tools and knowledge that the locals have in English. It's a long path and a lot to cover.

Here are the highlights of the new projects we are currently working on.

Public health insurance cost calculator

This tool will help you calculate the cost of your current public health insurance and compare it with the cheapest health insurance providers in Germany.

Here are some screenshots of the tool (not yet live)

Ebooks and video courses

Another project that we are actively working on is creating ebooks and video courses covering various topics, such as insurance, tax, rent, culture, etc. We are partnering with experts in various fields to offer the best information to expats.

New on GermanPedia

Dos and Don'ts in Germany

Every country has its cultural norms. Knowing them can make integrating with the locals less painful. Moreover, just knowing them can be fun. So, we gathered all the dos and don'ts in Germany.

Benefits that only private health insurance offers

Germany offers two types of health insurance. Which health insurance is better for whom is an emotional topic and a complex one to answer. However, for those who seek the best medical coverage, private health insurance is the only answer.
​

Freebies

Check out our shop to download freebies like rental contracts, checklists, books, etc. We created several free products to make settling in Germany easy for you.

​
​
​

Disclaimer

The information provided here is based on our own experience and in-depth research. The content might be inaccurate. It should not be considered financial, insurance, tax, legal, or any kind of advice.

We are not certified brokers or consultants. Always do your research and contact certified professionals before making any decision. GermanPedia disclaims any and all liability for damages or losses arising from the use of this document.

We finance our extensive work via affiliate links. Thus, some or all of the links in the post might be affiliate links.

We get money if you click on such a link or conclude a contract with the provider without costing you a cent extra.

Investment involves risk of losing money.

All links marked with the "*" are affiliate links.

​

GermanPedia

Wikipedia for expats to succeed in Germany

Learn something new about Germany every day. We cover every aspect of life in Germany: insurance, tax, real estate, schooling, scams, etc.

Read more from GermanPedia

New here? Check out GermanPediaDid someone forward you this? Subscribe to this newsletter. Your unfair advantage in Germany Essentials Rights : Utility suppliers can cut off your (tenants') electricity, gas, or water if your landlord fails to pay the bill. It doesn't matter if you (as a tenant) paid rent and utility costs on time. If you face a utility cutoff, do the following. Demand payment from the landlord in writing Ask the local housing authority (Wohnungsaufsicht) to intervene. Once...

2 days ago • 7 min read

New here? Check out GermanPediaDid someone forward you this? Subscribe to this newsletter. Your unfair advantage in Germany Essentials Law : Germany's cabinet approved the Startchancen- und Qualitätsentwicklungsgesetz. It will enforce nationwide quality standards for Kitas. By age four, every child's language and development status must be assessed. Kitas must offer targeted support where language gaps are found. Kitas will also receive extra funding to support this initiative. The federal...

9 days ago • 6 min read

New here? Check out GermanPediaDid someone forward you this? Subscribe to this newsletter. Your unfair advantage in Germany Essentials Tax : German cabinet approved the Einkommensteuerreformgesetz 2027 on 2 September. The Bundestag and Bundesrat still have to approve it. The basic tax-free allowance rises from 12,348 € to 12,564 € in 2027 and to 12,900 € in 2028. Kindergeld rises from 259 € to 267 € per child per month in 2027, and then to 272 € per child per month. The...

16 days ago • 6 min read