Ministry of Finance index-links child supplement for 2027 and drastically lowers threshold amount for 2026

The Federal Ministry of Finance has redefined the indexation of the child supplement for the year 2027 by decree, and in doing so, has also redefined the threshold amount for income tax assessments for the calendar year 2026. The decree was promulgated on November 13, 2026, in the Federal Law Gazette for the Republic of Austria, Part II, under number BGBl. II No. 327/2026. It is titled Child Supplement Indexation Decree – KiZuValVO 2027.

The legal basis is § 104 Para. 4 of the Income Tax Act 1988 – EStG 1988, BGBl. No. 400/1988, most recently amended by a federal law from 2026. The determination of the amounts is carried out according to the scale of § 108f of the General Social Insurance Act – ASVG, BGBl. No. 189/1955, as mentioned in the text of the decree. The text comprises only two paragraphs and is signed by Marterbauer.

Two paragraphs, two very different movements

§ 1 of the decree concerns the threshold amount according to § 104 Para. 2 EStG 1988 for income tax assessments for the calendar year 2026. § 2 regulates the amount according to § 104 Para. 3 EStG 1988 for the calendar year 2027. Both values are explicitly formulated in the official text as replacements for previous amounts:

• Threshold amount 2026: instead of 26,419.6 euros, now 317.9 euros
• Amount 2027: instead of 61.6 euros, now 63.7 euros

A threshold amount of unusual magnitude

The threshold amount determined for 2026, at 317.9 euros, is approximately 26,100 euros below the initial value of 26,419.6 euros mentioned in the text of the decree, which corresponds to a decrease of about 98.8 percent. The decree itself contains no justification, no explanation, and no transitional provision regarding this value; it contrasts the two figures without further elaboration. Since the threshold amount according to § 104 Para. 2 EStG 1988 marks the income threshold for eligibility for the child supplement, its level has a direct impact on the number of eligible families.

Increase of the amount for 2027 by 3.4 percent

The amount according to § 104 Para. 3 EStG 1988 increases for 2027 from 61.6 euros to 63.7 euros, an increase of 2.1 euros or approximately 3.4 percent. This increase follows the indexation according to § 108f ASVG cited in the text of the decree. For the calendar year 2027, a value applies that maintains the previous order of magnitude, while the threshold amount for 2026 deviates by several powers of ten within the same legal act.

Affected parties and enforcement

The regulation affects all families entitled to the child supplement as well as the tax administration, which must apply the threshold amount when preparing the income tax assessments for the year 2026. The determination of the threshold amount is retroactive to assessments of the current calendar year, and those of the amount for 2027 to the coming assessment year. The concise text of the regulation contains no further information regarding its entry into force, application period, or cost implications.

For readers entitled to the child supplement, the regulation is doubly relevant: the amount for 2027 increases slightly, while the threshold amount applicable for 2026 is stated as 317.9 euros in the official wording. Given the magnitude of this value, it is advisable to check the assessment or make an inquiry with the tax office before calculating one’s own entitlement.

Source: Federal Law Gazette for the Republic of Austria, Part II, No. 327 of November 13, 2026, Regulation: Child Supplement Valorization Regulation (official reference: BGBl. II No. 327/2026).