Parents will have to share family tax bonus from 2027

Parents will face new limits on how they divide Austria’s Family Bonus Plus from 2027, with some families potentially losing up to 500 euros a year. ORF Kärnten reported that one parent will generally be able to claim no more than 75 percent of the tax bonus.

The bonus can be claimed for each child who qualifies for family allowance. Parents can claim up to 2,000 euros per year for a child under 18, and up to 700 euros for an older child.

For children who have reached the age of four, the standard split will be 50-50. Alternatively, one parent can claim 75 percent and the other 25 percent. A parent can still claim the full amount if the child is under four or qualifies for an increased family allowance.

The new allocation could leave families worse off if one parent has paid too little income tax to use their share. In an example cited by Diana Jusic, a tax law expert at the Carinthian Chamber of Labour, a mother working part time could be required to claim 25 percent but lose up to 500 euros because she has paid no, or too little, wage tax.

Parents must submit a new form to their employer to change how they split the bonus. Those already sharing it and single parents do not need to make changes; single parents retain sole entitlement.