Tax Planning
How Taiwan’s New Child-Related Income Tax Relief Impacts Parents in 2026
Taiwan has just increased tax breaks for families with children—this guide explores the recent changes, who benefits, and how to maximize deductions for your 2026 return.
By NomadicTax Research Team • 5-8 min read • September 15, 2026
## 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](https://www.mof.gov.tw/singlehtml/384fb3077bb349ea973e7fc6f13b6974?cntId=901f90d254454c568df85ec5e8128c83&utm_source=openai)) |
| **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](https://www.mof.gov.tw/singlehtml/384fb3077bb349ea973e7fc6f13b6974?cntId=901f90d254454c568df85ec5e8128c83&utm_source=openai)) |
## 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](https://www.mof.gov.tw/singlehtml/384fb3077bb349ea973e7fc6f13b6974?cntId=901f90d254454c568df85ec5e8128c83&utm_source=openai))
- 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
1. **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.
2. **Document all social insurance payments**: Keep official receipts or proof of premiums paid—without them you may miss out.
3. **Consider timing**: These changes apply starting tax year 2026; expenses paid in late Dec 2025 aren’t eligible.
4. **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.