Austria offers substantial tax benefits for families with children, recognizing the financial responsibilities of raising a family. Understanding these benefits can significantly reduce your tax burden and increase your disposable income.
Family Bonus Plus (Familienbonus Plus)
The Family Bonus Plus is Austria's primary tax credit for families and can provide substantial tax savings.
Key Features
- Amount: €2,000.16 per child per year for children under 18
- Older children: €700.08 per year for children 18+ while Familienbeihilfe is still paid (e.g. during education)
- Type: Tax credit (reduces tax liability directly)
How It Works
Unlike deductions that reduce taxable income, the Family Bonus Plus directly reduces your tax liability euro for euro:
- Example: If you owe €3,000 in taxes and have one child under 18, your tax liability reduces to about €1,000
- Not refundable: The Family Bonus Plus can reduce your tax to zero, but not below. Low earners may instead get the Kindermehrbetrag of up to €700 per child
- Both parents: Can be claimed entirely by one parent or split 50/50
Eligibility Requirements
- Family allowance: Familienbeihilfe must be paid for the child
- Residence: The child must live in Austria, the EU/EEA or Switzerland
Childcare Costs: No Longer Deductible
The former childcare cost deduction (Kinderbetreuungskosten, up to €2,300 per child under 10) was abolished in 2019 when the Family Bonus Plus was introduced. Childcare costs can no longer be claimed on your tax return.
Employers can still pay a tax-free childcare subsidy (Zuschuss zur Kinderbetreuung) for children under 14, under certain conditions.
Additional Family-Related Deductions
Extraordinary Expenses for Children
Certain child-related expenses may qualify as extraordinary expenses:
Medical Expenses
- Therapy costs: Speech therapy, occupational therapy, physiotherapy
- Medical equipment: Glasses, hearing aids, orthopedic devices
- Special treatments: Not covered by health insurance
- Psychological counseling: For children with special needs
Educational Expenses
- Private school fees: If public education is not available or suitable
- Special education: For children with learning disabilities
- Tutoring: If recommended by school or educational psychologist
Single Parent Benefits
Single parents receive additional consideration in the Austrian tax system:
Single Earner / Single Parent Credit (Alleinverdiener-/Alleinerzieherabsetzbetrag)
- Amount (2026): €612 per year for one child, €828 for two children, plus €273 for each further child
- Eligibility: Single parents, or couples with children where one partner earns no more than €7,411 per year (2026)
- How to claim: Through your employer with Form E 30, or on your tax return. It can be paid out as a refund even if you owe no tax
Child Allowance (Familienbeihilfe)
While not a tax benefit per se, child allowance affects your tax situation:
Monthly Amounts (2025–2027)
- Age 0-2: €138.40 per month
- Age 3-9: €148.00 per month
- Age 10-18: €171.80 per month
- Age 19+: €200.40 per month (if in education)
These amounts are frozen at the 2025 level for 2026 and 2027. A sibling supplement is added for families with two or more children.
Tax Treatment
- Not taxable: Child allowance is not considered taxable income
- Prerequisite: Required for claiming Family Bonus Plus
- Automatic payment: Paid monthly by the government
Planning Strategies for Families
1. Optimize Parent Allocation
- Enough tax to absorb it: The Family Bonus Plus can only reduce tax to zero, so it should go to the parent who pays enough income tax to use it fully
- Tax bracket doesn't matter: As a credit, it is worth the same in every bracket
- Splitting option: Can be split 50/50 between parents if both pay enough tax
2. Use Employer Childcare Subsidies
- Tax-free subsidy: Ask whether your employer offers a tax-free childcare subsidy
- Keep records: Keep invoices from the childcare provider
3. Consider Timing of Expenses
- Medical procedures: Time elective procedures to maximize extraordinary expense deductions
- Educational expenses: Plan major educational expenses strategically
- Equipment purchases: Time purchases of medical equipment or educational tools
Special Situations
Divorced or Separated Parents
- Primary residence: Child must live with claiming parent for more than 6 months
- Agreement required: Parents can agree on who claims benefits
- Court orders: May specify which parent claims tax benefits
- Documentation: Proper legal documentation required
Children with Disabilities
Additional benefits may be available:
Disability Deduction
- Amount: €262 per month as an extraordinary burden if increased Familienbeihilfe is paid for the child
- No deductible: These costs are deductible without a Selbstbehalt
Enhanced Deductions
- Medical expenses: Often exceed extraordinary expense thresholds
- Special equipment: Wheelchairs, communication devices, adaptive technology
- Therapy costs: Physical, occupational, and speech therapy
International Families
- EU citizens: Generally eligible for same benefits as Austrian citizens
- Third-country nationals: May have limited eligibility depending on residence status
- Cross-border workers: Special rules may apply for workers living in neighboring countries
Common Mistakes to Avoid
1. Missing Documentation
- Keep all receipts: For medical and disability-related expenses
- Maintain records: Of child's residence and support
2. Incorrect Allocation
- Double claiming: Both parents claiming same child
- Wrong parent: Not optimizing which parent claims benefits
- Timing errors: Missing deadlines for benefit claims
3. Overlooking Benefits
- Extraordinary expenses: Not claiming eligible medical or educational costs
- Single parent benefits: Missing additional allowances
- Disability benefits: Not claiming enhanced benefits for children with special needs
How to Claim Family Benefits
Annual Tax Return
- Form L1: For employee tax returns
- Supplement L 1k: For the Family Bonus Plus and other child-related claims
- Form E 30: To have the Family Bonus Plus and the single earner/single parent credit applied through payroll during the year
- Documentation: Attach required receipts and certificates
- Electronic filing: Use FinanzOnline for faster processing
Required Documents
- Birth certificates: For all children
- Medical certificates: For disability-related benefits
- School enrollment: For children over 18 in education
Conclusion
Austria's family tax benefits can provide substantial savings for families with children. By understanding and properly claiming all available benefits, families can significantly reduce their tax burden and improve their financial situation.
The combination of Family Bonus Plus, the single earner/single parent credit, and other family-related benefits can save families thousands of euros annually. Proper planning and documentation are key to maximizing these benefits.
Use our income tax calculator to see how family benefits affect your specific tax situation and potential refund.
This information is for educational purposes only. Tax laws can change, and individual circumstances vary. Consult with a qualified tax professional for advice specific to your family's situation.