Is Au-Pair Stipendium Taxable? Taxes & Deductibility
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In short: In Germany, an au pair generally does not have to pay tax on their allowance—because it is not considered a regular salary, and the typical amounts usually stay within tax‑free limits. At the same time, the host family can often deduct a portion of the au‑pair costs from their taxes, for example as childcare expenses or as a household‑related service.
In this guide we look at both sides: what applies tax‑wise for the au pair and what the host family can deduct. Important note: this is a general orientation, not tax advice—the details depend on the individual case.
Does the au-pair have to pay tax on their allowance?
Usually not. The au-pair arrangement is designed as a cultural exchange, not as a traditional employment relationship. The pocket money — in Germany at least €280 per month — is legally not a wage in the strict sense, but a stipend for helping out with the household as part of this exchange.
Additionally, with an amount of this size the au-pair typically stays within the tax‑free allowances, so in practice no income tax is due. Someone who is an au-pair and has no other earnings in Germany generally does not have to file a tax return — although exceptions may apply depending on the individual situation.
Important note: This article provides general information and is not tax advice. Tax rules change, and individual cases may differ—such as with additional income, longer stays, or special agreements. When in doubt, a tax advisor or the relevant tax office can provide definitive assistance.
Can the host family deduct the au-pair costs?
Often yes — at least partially. In Germany there are two possible ways for host families, depending on what the au pair is used for:
- Childcare expenses (special expenses): As long as the au pair looks after children, this portion of the costs can be claimed as childcare expenses — usually up to two‑thirds and up to an annual maximum per child. Typically the children must not exceed a certain age.
- Household‑related services (tax reduction): As long as the au pair performs light household tasks, this portion can be counted as a household‑related service. Here there is a direct tax reduction of 20 % of the expenses up to an annual maximum.
Because an au pair typically does both — caring for children and helping around the house — the tax office often splits the costs. If there is no clear evidence of the split, it is often estimated roughly 50/50. You should check or have checked the exact maximum amounts and rates for the relevant tax year.
Au-Pair vs. Host Family: Tax Overview
| View | Tax-related | Practical tip |
|---|---|---|
| Au-Pair | Pocket money is generally not considered regular salary; with typical amounts, income tax usually does not apply (tax‑free thresholds). | Keep contracts and receipts — in case the tax authorities in your home or host country request them. |
| host family | Share for child care as child care expenses (generally two thirds, annual maximum amount); share for housework as a household-related service (approximately 20% discount). | Pay by bank transfer, never in cash — otherwise the tax office often does not recognize the expenses. |
What Matters to the Tax Office
In order for the host family to be able to deduct the costs, the tax office mainly looks at two things:
- Payment by bank transfer, not in cash: This is crucial. Cash payments are generally not recognized for household-related services and child‑care expenses. Transfer the pocket money to the Au‑Pair’s account each month—this automatically provides proof.
- Written contract: An Au‑Pair agreement that outlines the pocket money, duties, and duration serves as documentation. It also shows that the Au‑Pair provides child care—the basis for child‑care expense deductions.
With a contract and bank statements, the deductibility is well documented. Without the transfer proof, the tax benefit is quickly lost.
Practical tip: Set up a monthly standing order for the allowance. This way you pay on time, document the payments without gaps, and have all receipts together at the end of the year—a small step that makes the tax return much easier.