Tax Planning
Taiwan’s “Mariage & Child Relief”: How Parents Can Claim Bigger Deductions Starting 2027
Starting from the 2026 tax filing season, Taiwan has enacted sweeping amendments in its Income Tax Act designed to ease the burden on families—particularly those with children under 18. Here's what you need to know and how to plan ahead.
By NomadicTax Research Team • 5-8 min read • September 12, 2026
## What’s Changed?
On **11 September 2026**, Taiwan’s Ministry of Finance announced that the President promulgated amendments to **Articles 17 & 126** of the Income Tax Act. These changes take effect for filings in **May 2027** (covering the 2026 tax year) and aim to address low birth rates and support families. ([mof.gov.tw](https://www.mof.gov.tw/singlehtml/384fb3077bb349ea973e7fc6f13b6974?cntId=901f90d254454c568df85ec5e8128c83&utm_source=openai))
Key changes include:
- **Underage Child Exemption Raised**: The exemption amount for **minor children** (below 18, not yet adults) increases by **50%**, from **NT$101,000** to **NT$151,500** per child. ([mof.gov.tw](https://www.mof.gov.tw/singlehtml/384fb3077bb349ea973e7fc6f13b6974?cntId=901f90d254454c568df85ec5e8128c83&utm_source=openai))
- **Social Insurance Deductions**: Insurance costs tied to labor insurance, farmer’s health insurance, national pension, and military/public service insurance are no longer subject to the NT$24,000 cap—these can be **fully itemized** as deductions. ([mof.gov.tw](https://www.mof.gov.tw/singlehtml/384fb3077bb349ea973e7fc6f13b6974?cntId=901f90d254454c568df85ec5e8128c83&utm_source=openai))
## Who Benefits and How Much?
These amendments are expected to benefit approximately **2.37 million taxpayers** and result in **NT$8 billion** in reduced tax payments nationally. ([mof.gov.tw](https://www.mof.gov.tw/singlehtml/384fb3077bb349ea973e7fc6f13b6974?cntId=901f90d254454c568df85ec5e8128c83&utm_source=openai))
Example:
- A family with **two children** aged 10 and 15:
- Prior exemption per child: NT$101,000 × 2 = NT$202,000
- New exemption per child: NT$151,500 × 2 = NT$303,000
- Increase in exemption: NT$101,000, meaning lower taxable income
- Self‐employed or those with mandatory social insurance contributions (labor, military, etc.) will now be able to itemize the full amount—even if previously they'd hit the NT$24,000 cap and been limited. This **lowers taxable income** for middle income earners with significant social insurance costs.
## Actionable Tax Planning Tips
| What You Should Do | Why It Matters |
|---|---|
| Review if you’re supporting underage children | The increased exemption can shift your tax bracket or reduce tax payable significantly |
| Track social insurance contributions carefully | With the removal of the cap, accurate amounts matter more for deductions |
| Estimate taxes for May 2027 ahead of annual filing | Helps you project savings and consider investments or savings plans |
| Keep all documentation | Proof of dependency, insurance premiums paid—these will be needed for deductions |
| Consult a tax professional if self‐employed or with mixed income | There may be additional beneficial deductions or special filing routes |
## Comparative Insights: What Taiwan’s Doing vs. Other Jurisdictions
Taiwan’s enhanced child and exemption relief reflects a global trend encouraging fertility through tax incentives—Hong Kong, by contrast, has increased child and dependent allowances in its 2026‐27 Budget, but hasn’t changed underage exemption mechanics at this level. ([ird.gov.hk](https://www.ird.gov.hk/eng/faq/budget2026_27.htm?utm_source=openai))
Taiwan’s approach also broadens relief by fully allowing social insurance deductions—akin to some OECD models where mandatory insurances are recognized without tight caps.
## Bottom Line
If you're a parent or guardian in Taiwan with underage children or pay social insurance, these changes can lower your tax bill meaningfully from May 2027 onwards. It’s smart to plan ahead to take full advantage.