Germany to automate child benefit payments from 2027

The German parliament (Bundestag) has approved plans to automatically pay out child benefit (Kindergeld), rather than requiring parents to submit an application. Here’s what parents need to know:

Bundestag approves automatic Kindergeld

All parents in Germany are entitled to child benefit payments, which offset the cost of raising children. The Family Benefits Office (Familienkasse) at the Federal Employment Agency (Bundesagentur für Arbeit) provides parents with 259 euros per month, per child.

However, to claim the benefit, parents need to register with their tax ID, their child’s tax ID and their bank details on the Federal Employment Agency website. The government wants to simplify this process.

From January 1, 2027, child benefits will be paid automatically to parents if they have a second child. The government also plans to extend automatic payments to first-born children, though a rollout date has not been confirmed.

After a child is born and the parents notify the registry office (Standesamt), the Standesamt will notify the Federal Tax Office (Bundeszentralamt für Steuern), which will then notify the aforementioned Familienkasse. The new policy will now face a vote in the Bundesrat, which represents Germany’s 16 federal states.

Four hours less life admin for families

According to a recent study by the University of Würzburg, the Frankfurt School of Finance and Management, and Humboldt University Berlin, automating child benefit payments is likely to save families an average of four hours. 

Researchers added that there are many more opportunities for the government to reduce bureaucratic burdens for families, especially when it comes to filing annual tax returns.

Multiple federal states are currently running pilots based on digital processes used in Denmark, where tax authorities collate financial data in an online portal, and taxpayers simply need to correct any errors. Researchers estimate this can save taxpayers around 3,3 hours per year.

2026 marks the first year that Germany’s online tax office system, ELSTER, has partially auto-filled tax declaration forms for taxpayers. However, tax experts have warned that submitted auto-filled declarations may result in taxpayers receiving smaller refunds.