Benefits & credits
Tax credits (Absetzbeträge) and flat allowances (Pauschbeträge) target specific life circumstances: Familienbonus for children, Pendlerpauschale plus Pendlereuro for the commute, AVAB/AEAB for single-earners and single-parents. Unlike Sonderausgaben (which only reduce the tax base), Absetzbeträge are subtracted directly from the tariff tax, €1 credit equals €1 less tax.
Key figures 2026
What changed 2026
Terms in this topic
- Church contribution
Sonderausgabe, capped at €600/yr, saving at the marginal rate (not euro for euro).
- Disability Allowance
§ 35 EStG flat allowance by certified disability grade, eight tiers from 25 % to 95 %+.
- Familienbonus Plus
Per-child tax credit, €166.68/mo under 18, €58.34 once 18+, subtracted directly from the tariff.
- Maintenance Tax Credit
Tax credit for parents paying child support, staffel per child, counted monthly.
- Multi-Child Supplement (§ 9 FLAG)
€24.40/mo per child from the third onward, income-tested (up to €55,000 family income).
- Pendlerpauschale & Pendlereuro
§ 16 EStG flat allowance plus § 33 tax credit, what really reduces commuters' bottom line.
- Pensioner Tax Credit (Pensionistenabsetzbetrag)
Credit against the wage tax on a pension, § 33 Abs 6 EStG, phased out, increased for married pensioners with a low partner income.
- Single-Earner Tax Credit (AVAB)
Tax credit for families with only one earned income, § 33 Abs 4 Z 1 EStG, staffel by number of children.
- Single-Parent Tax Credit (AEAB)
Tax credit for single parents, identical staffel as AVAB, mutually exclusive.
- Union contribution
Werbungskosten, fully deductible without cap, saving at marginal rate.
Related terms
- Einkommensteuertarif (§ 33 EStG)Steuer
Credits work differently from flat allowances: they reduce the calculated tariff tax €1-for-€1, while flat allowances reduce the tax base (effect = marginal rate × amount).
- Sonderbezüge (13th & 14th salary)Steuer
The §67 preferential rate for special payments is effectively the "largest tax break" in the system, but works structurally differently (its own staffel rates on the 13th/14th salary).