Parental support deducted from taxes: Maximum amount in 2026 and nursing home costs

Status: November 2026 · Attorney Helmer Tieben, Cologne

The mother can no longer support herself on her pension, or the father has to go to a nursing home, and the pension does not cover the own contribution. Many children then step in, either voluntarily or because the social welfare office is requiring them to support them. Such payments can reduce the taxable income as an extraordinary expense. The extent to which this happens depends primarily on what you are paying for.

Maintenance or care costs: Which rule applies?

The Income Tax Act treats alimony and medical or care costs under two different regulations with different requirements. Which one applies depends on the purpose of the payment; you do not have a choice.

Continuing livelihood falls under Section 33a, paragraph 1, of the EStG. These are payments that help you finance your parents’ rent, groceries, and everyday living expenses. This also includes living in a nursing home if you are elderly and on your own. There is a fixed maximum amount for this, but no personal contribution.

Expenses due to illness or need for care fall under § 33 EStG. This mainly concerns accommodation in a nursing home because the mother or father is in need of care. There is no maximum amount here. However, you must bear part of the cost yourself, the so-called reasonable burden.

The financial administration draws the same line: costs of hospitalization due to illness or care related to nursing home care are covered by § 33, while costs of purely age-related nursing home care are covered only by § 33a (BMF letter of 15.10.2025, p. 12). The path to ordinary maintenance is blocked by § 33.

How much maintenance can I deduct under § 33a EStG?

The maximum amount corresponds to the basic exemption. For 2026, this is 12,348 euros per supported person, up to 24,696 euros if you support both parents. If you contribute to the basic health and care insurance for your parents, the amount increases by these contributions.

If your parents live together as a married couple, the tax office calculates both together: their income and allowances are added up and compared with the double maximum amount and the double non-deductible amount. An example: If both have together countable income and allowances of 15,000 euros, 1,248 of them are exempt. The remaining 13,752 euros reduce the double maximum amount of 24,696 euros to 10,944 euros for both parents together.

The maximum amount is calculated based on the own income and wages of the supported parent, provided that they exceed 624 euros per year. Income includes, for example, the taxable part of the pension. „Wages“ are funds that are not taxed, such as the tax-free part of the pension. Only these wages are allowed to be deducted in a lump sum of 180 euros per year, unless higher expenses are proven; the income is subject to the applicable expenses or lump sums there provided.

Calculations are made on a monthly basis. You can only support your mother from October onwards; the calculation only counts three months, so a maximum of 3,087 euros. Therefore, a one-time payment in December for the entire year will only be taken into account from the month of payment onwards. A strict exception may apply if the first payment of support is proven to have cleared debts that the parent had previously incurred to support themselves in the same calendar year (BFH, judgment of 25 April 2018 – VI R 35/16).

Example: This is how it is calculated

Son S supports his mother M with 500 euros per month, or 6,000 euros per year, by transferring money to her account. After deducting the allowances, M has her own income and salary of 6,000 euros per year and no significant assets.

S can therefore deduct the full maintenance of 6,000 euros as an extraordinary expense. This requires that the victim threshold and the other deduction requirements are met in particular. The amount that can be deducted is not the tax savings: it reduces the taxable income. Assuming a personal tax rate of 30 percent, an income tax savings of around 1,800 euros would result, plus solidarity surcharge and church tax, if any. Had he paid 600 euros per month, only 6,972 euros of 7,200 euros would be deductible.

What requirements do I need to meet?

• Their parents are in need. Parents are legally obligated to support you (§ 1601 BGB). However, they may only have a modest amount of wealth. According to the income tax guidelines, wealth up to a value of 15,500 euros can generally be considered modest (R 33a.1, paragraph 2, EStR); the MFH letter of 15 October 2025 only speaks of „modest wealth“. This does not include a self-occupied, reasonably priced home.
• They are transferring the money. From the tax assessment period 2025 onwards, financial contributions must be made in principle by transferring them to an account held by the supported person. Cash payments are not eligible, not even with a receipt. Under certain conditions, the direct transfer to a third party can also be accepted if it demonstrably fulfils a liability of the recipient of the maintenance, for example the rent to the landlord (abbreviated payment method).
• They provide the tax ID when the parent is liable to pay taxes in Germany. If the supported parent is not subject to unlimited or limited income tax liability in Germany, you must provide their tax identification number in the attachment for maintenance. For parents who live abroad and are not subject to tax in Germany, a German tax ID is usually not required for this deduction.
• The payment fits your income. If the parent does not live with you in a social welfare group, the tax office examines the so-called victim threshold. It amounts to 1 percent of the full 500 euros of your net income, maximum 50 percent. This percentage decreases by 5 percent points for your spouse, possibly also for a divorced spouse, and for each child for whom you receive child benefit or tax-exempt allowances. All reductions together amount to a maximum of 25 percent points (BMF letter of 10/15/2025, item 23). The available net income as determined according to the tax administrative principles is decisive. Anything beyond that is no longer considered mandatory.

If your parents live abroad, additional rules apply: Depending on the country, the maximum amount is reduced (by country group classification), and the tax office requires a declaration of support and more stringent proof.

How do I pay for nursing home care for my parents?

If your father has to be placed in a nursing home because of his need for care and you are responsible for a portion of the costs, this is not ordinary maintenance. You can deduct these costs under § 33 of the German Income Tax Act. The necessary and reasonable costs you incur yourself, such as care, accommodation, and meals in the nursing home, are taken into account; these are necessary if you are unable to avoid them for legal, factual, or moral reasons. Deductible are:

1. Benefits of the care insurance and other places.
2. What your father himself can wear. His disposable income, such as his pension, and the assets he is legally required to use are the primary factors. Protected assets are not taken into account in this context. Only what you bear in addition to this is your burden.
3. Possibly a savings on the household budget. If the previous own household is dissolved due to home care, according to the tax administrative principles, a budgetary saving must be taken into account in principle. However, whether and to what extent the expenses must be reduced must be examined based on the specific income and burden situation. The Court of Appeal in Cologne has, in a judgment of 26 January 2017 (14 K 2643/16), rejected such a deduction in a case where the mother in need of care could support her general living expenses from her own income.
4. Their reasonable workload (see table).

The reasonable burden depends on your total income, your marital status and the number of your children (§ 33, paragraph 3, EStG). Since a decision by the Federal Finance Court, it is calculated in stages: the higher percentage applies only to the part of the income that exceeds the level (BFH, judgment of January 19, 2017 – VI R 75/14).

The social office does not pay the home costs directly; instead, it reimburses them and subsequently collects the money from you; this does not fundamentally change the classification. The Cologne Court of Finance has attributed such payments to the social office for home care related to nursing care in total § 33 EStG and has refused to treat a portion of them as maintenance under § 33a (judgment of 26.01.2017 – 14 K 2643/16). Subsequently, a reasonable burden was deducted from this; the payments therefore did not reduce the taxable income in full.

What happens if I have to take care of my parents myself?

If you care for your mother or father without being paid for it, you can claim the care allowance under § 33b, paragraph 6, EStG instead of individual costs. It amounts to 600 euros for care level 2, 1,100 euros for care level 3, and 1,800 euros per year for care level 4 or 5. The 1,800 euros also apply if the cared for parent is helpless within the meaning of the law (the „H“ sign). Additional requirements:

• They are carried out in person, in your home or in the home of a parent, either domestically or in another EU or European Economic Area country.
• You do not receive any income from caregiving. If the parent continues to send you their caregiving allowance, this may exclude the lump sum amount.
• You enter the tax ID of the parent who is responsible for the care in the tax return.

If siblings share the caregiving duties, the lump sum is divided up.

Do I have to pay parental support at all?

Since January 1, 2020, the social welfare office may only collect child support from parents if their total annual income exceeds 100,000 euros (§ 94, paragraph 1a, SGB XII, „Relief for Dependents Act“). Total income is the sum of the income within the meaning of the income tax law (§ 16 SGB IV). This includes, in addition to wage income after deducting expenses for employment, for example, income from rental and relevant capital gains. The income of the spouse is not included. The limit is assessed individually for each child. It generally concerns the consideration and transfer of maintenance claims under social welfare law. It does not mean that every civil law maintenance obligation is excluded below this limit. Those who earn less can still voluntarily pay and deduct the payments under § 33a if the other requirements are met.

How the Social Office determines whether you are capable of working is described in our article. Parental maintenance: When the social welfare provider claims the children of those in need of care.

Frequently asked questions

How much parental support can I deduct from the tax in 2026?

Up to 12,348 euros per parent per year, plus contributions paid to the basic health and care insurance. The parent's own income and salary over 624 euros per year reduce the amount. In addition, the remaining requirements must be met, especially transfer, low assets and the victim threshold.

Can I deduct the nursing home costs of my parents?

Yes, if the home care is provided due to dependency or illness. Then § 33 EStG applies without a maximum amount for the necessary and reasonable costs that you bear yourself and that are inevitably incurred; priority is given to the available income and the assets available to the parent. Benefits from the care insurance and your reasonable burden are deducted. If the parent’s household has been dissolved, a household savings is generally to be taken into account; whether and to what extent, depends on their income situation.

Can I deposit cash with my parents?

Not from 2025 onwards. Financial contributions must in principle be made by transfer to an account of the supported parent. Under certain conditions, the direct payment of a parent’s obligation to a third party is also recognized, such as the rent.

How much wealth can my parents have?

Only a small amount of wealth. According to the income tax guidelines, wealth up to a value of 15,500 euros is generally considered to be small. A reasonably priced, self-occupied house is not included.

Do I have to pay child support if I earn less than 100,000 euros per year?

The social welfare office generally cannot take you into account. Since 2020, maintenance claims can only be passed on to the social welfare provider if the total annual income of the respective child, that is, the sum of their income under the income tax law, exceeds 100,000 euros; the income of the spouse does not count. However, a civil law maintenance obligation is not excluded in every case below the limit.

Important Note: The content of this article has been prepared to the best of our knowledge and belief. However, due to the complexity and constant evolution of the subject matter, we must exclude liability and warranty. Important Notice: The content of this article has been created to the best of our knowledge and understanding. However, due to the complexity and constant changes in the subject matter, we must exclude any liability and warranty.