Tax deductions for childcare: How much money do you really save?

Did you know that since 2025 you can deduct up to 80% of your childcare costs from your taxes in Germany? Whether you regularly hire a babysitter or have your child cared for in daycare: Part of your expenses can reduce your income tax.

But what does that mean in concrete terms? Do you really get 80% of your costs back from the tax office? And how do you calculate how much money you actually save?

We'll explain how it works step by step – with a simple calculation example.

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How much childcare cost can you deduct from your taxes?

Since January 1, 2025, according to Section 10 Paragraph 1 Number 5 of the Income Tax Act (EStG), you can deduct 80% of your childcare costs, up to a maximum of €4,800 per child per year, as so-called "special expenses" from your taxes. "Special expenses" are certain private expenses that the tax office takes into account when calculating your income tax. They reduce the income on which you have to pay taxes.

However, this doesn't mean you'll get 80% of your childcare costs back. More on that later in our example calculation.

Deductible childcare costs and babysitting expenses include, for example:

• Occasional babysitting and regular childcare
• Childcare provided by a "Tagesmutter" or "Tagesvater"
  
• Daycare center, kindergarten or nursery
• After-school care, for example in after-school care centers or at home

Important: You can only deduct the actual childcare costs. Costs for tutoring, music lessons, sports courses, or your child's meals, for example, do not count.

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Example calculation: How much tax will you save on €3,000 in childcare expenses?

Let's assume you spend €3,000 a year on childcare and earn €65,000 gross per year.

Your initial calculation looks like this:

• Annual childcare costs: €3,000
• Of which 80% is tax deductible: €2,400
• Your taxable income will decrease by: €2,400

But how much money do you actually get back?

That depends on how high your income tax is.

In our example, as mentioned, you earn €65,000 gross per year. However, your gross salary is not automatically your taxable income: When calculating taxes, certain insurance contributions (e.g., for your health insurance) and professional expenses, the so-called "business expenses" (e.g., travel costs to work, work equipment such as a laptop, or costs for further training), are deducted from it.

Let's assume that after these deductions, €52,000 remains as taxable income .

Due to the deductible childcare costs of €2,400, this amount decreases further to €49,600. The tax office will therefore calculate your income tax based on €49,600 instead of €52,000.

How much tax will you save as a result?

According to the German income tax rates for 2026, the following calculation results for a single tax assessment:

• Income tax on €52,000: €11,257
• Income tax on €49,600: €10,408
• Your tax savings are the difference: €849

You would then have:

• Paid €3,000 for childcare.
• €2,400 tax deductible.
• €849 in income tax saved.
• After the tax savings, the actual cost of childcare was €2,151, not €3,000.

This example calculation is based on the 2026 income tax rates for single taxpayers. How much you actually save depends on your taxable income and your personal tax situation.

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What are the requirements for claiming childcare costs as a tax deduction?

In order for German tax offices ("Finanzamt") to recognize your childcare costs, the following conditions must be met:

• Child's age: Your child is under 14 years old. Exceptions apply for children with certain disabilities.
• Household: Your child belongs to your household.
• Proof of payment: You have an invoice or a corresponding childcare contract.
• Payment: You pay electronically to the account of the babysitter or provider, such as a marketplace. The tax office does not accept cash payments.

Good to know: You can also deduct occasional babysitting from your taxes! So you don't have to book regular childcare. Furthermore, you don't need to be employed.

At the Helferei You will receive a fee for each completed childcare service. An invoice will be generated automatically . Payment is made electronically via our platform and depends on the actual duration of your babysitting and childcare assignment .

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Why does your tax saving in Germany depend on your income?

In Germany, the general rule is: the higher your taxable income, the higher the tax rate on any additional income. In tax terminology, this is called " tax progression" .

Therefore, two families with the same childcare costs can save different amounts of tax. Whether you file your taxes individually or jointly with your spouse also plays a role. This also applies to registered civil partnerships in Germany.

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Where do you enter childcare costs in your tax return?

You declare your childcare costs in the " Child Supplement" section of your income tax return. There you enter the actual childcare costs paid. The tax office generally takes 80% of these costs into account, up to a maximum of €4,800 per child per year.

Keep your invoices and proof of payment in case the tax office asks for them. At Helferei,you will find your invoices in your profile under "Documents" two days after the order is completed. They will remain stored there. However, we recommend that you download your invoices for your tax records.

Want to learn more about our childcare services? On our childcare page, you'll find all the information you need about babysitting, booking, and payment, as well as answers to frequently asked questions about this service. Happy reading!

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Note: This article explains the general tax regulations based on publicly available sources and does not replace individual tax advice.