Overview of Taiwan’s Recent Tax Changes for Families
On September 11, 2026, Taiwan’s President promulgated amendments to the Income Tax Act (Articles 17 & 126) aimed at easing tax burdens on families with children, as part of the “Marriage & Childbearing Family Further Tax Relief” measures. Key changes include:
| Change | From (Application Period) | Who Benefits |
|---|---|---|
| Increase in Minor Dependent Exemption | From January 1, 2026 (applicable when filing 2026 income tax in May 2027 for 2026 income) | Taxpayers supporting under-age children: exemption per child raised 50%, from NT$101,000 to NT$151,500 (mof.gov.tw) |
| Full deductibility of certain social insurance contributions | Same income year (2026) | Employment insurance, farmers’ health insurance, national pension insurance, and military / public school / teacher insurance—all now deductible without previous cap (same as health insurance) (mof.gov.tw) |
Who Gains and What It Means
- ~2.37 million taxpayers with children benefit from raised minor child exemptions, with estimated tax savings of about NT$8 billion overall. (mof.gov.tw)
- The removal of caps on social insurance contribution deductions helps workers whose insurance contributions were sizable—particularly in farming and social security sectors—gain more tax deductions.
Practical Tips for Taking Advantage
- Double-check your dependent details: If you support a minor (under 18), ensure that child is properly listed in your tax return to benefit from the increased exemption.
- Document all social insurance payments: Keep official receipts or proof of premiums paid—without them you may miss out.
- Consider timing: These changes apply starting tax year 2026; expenses paid in late Dec 2025 aren’t eligible.
- Plan for inflation adjustments: As standards change every few years, check deductible amounts in future tax years.
Example
Suppose 張小姐 supports two children and has previously claimed NT$101,000 per child (NT$202,000 total). Under the new regime, she claims NT$151,500 × 2 = NT$303,000, reducing her taxable income by NT$101,000 more. If her marginal rate is 20%, that’s an extra 約 NT$20,200 in tax savings.
Beyond the Numbers: Policy Goals & Implications
These changes are part of Taiwan’s broader strategy to combat declining birth rates and support family welfare. As tax policies shift, parents gain more incentive—to the government’s hoped-for effect—towards choosing Taiwan as a place to settle and raise family.
Action Steps Before Filing 2026
- Review your eligibility and ensure you include updated deduction structures.
- Use tax agency resources to verify documentation required.
- If self-filing, use updated forms released by NTBT.MOF.
Bottom line: If you’re a parent in Taiwan, these 2026 tax changes bring meaningful relief. Be sure to claim what you’re entitled to—and get your paperwork in order.