You can claim childcare costs as a special expense to reduce your tax burden. In your 2025 tax return, you can deduct 80% of your childcare costs. However, the tax office sets a maximum limit of €4,800 per child per year.
You must fulfil the following requirements to qualify for child care cost deductions.
- Your child is under 14.
- You have an invoice.
- You made the payment via bank transfer.
- Your child lives in the same household.
The Federal Fiscal Court (BFH) confirmed these requirements in its ruling from 27 Nov. 2025 (III R8/23).
What are childcare costs in Germany?
Childcare costs include payments for
- daycare (Kita),
- after-school care,
- childminders (Tagesmutter), babysitters, nannies,
- au pairs (pocket money, board, lodging),
- Reimbursements to caregivers, like travel expenses (e.g., 30 cents/km for grandparents) or free lodging if documented.
Childcare costs that are not considered for tax purposes
- Costs for meals
- Toys,
- Books,
- School trips,
- Sports clubs,
- Music lessons,
- Tutoring,
- Parents’ travel to drop off/pick up.
- Individual skill-building (e.g., piano, ballet) or pure educational activities
