The €175,000 Income Limit: What It Means for You

For children born from April 1, 2024, there's an income threshold: If your combined household income exceeded €175,000 in the calendar year before birth, you're not eligible for Elterngeld.

This is a change from before – previously there was no income limit for couples (only €300,000 for singles).

The Elterngeldstelle looks at your 'zu versteuerndes Einkommen' (taxable income) from your tax return. This is your gross income minus deductions like the Arbeitnehmer-Pauschbetrag.

If you're a couple (married or unmarried, living together), both incomes are added together. If you're single, only your income counts.

Let's say your baby is born in July 2024:

Couple earning €90,000 + €90,000 = €180,000 → Not eligible

Couple earning €100,000 + €70,000 = €170,000 → Eligible

Single parent earning €175,000 → Eligible (it's the limit, not over)

Single parent earning €180,000 → Not eligible

Some families consider strategies like maximizing deductions, making pension contributions, or changing tax classes. These can legitimately reduce your taxable income.

However, be careful: artificial arrangements just to get under the limit could backfire. The Elterngeldstelle looks at your actual economic situation.

If you're close to the threshold, consulting a tax advisor (Steuerberater) might be worthwhile.