Compliance
Taiwan’s New Tax Law Boosts Relief for Parents & Children — What You Must Know
Taiwan has passed legislation increasing child-related exemptions and deductions sharply from January 1, 2026, easing financial burdens on families with children under age six.
By NomadicTax Research Team • 5-8 min read • September 10, 2026
## New Changes in Taiwan’s 2026 Tax Law for Families
Taiwan’s legislature on **August 21, 2026** approved amendments to the Income Tax Law (Articles 17 and 126), under the initiative “婚育家庭再減稅” (tax relief for childrearing families). These amendments take effect for **income earned from January 1, 2026**, and will apply when filing in **May 2027** for the 2026 tax year. ([mof.gov.tw](https://www.mof.gov.tw/%20/singlehtml/384fb3077bb349ea973e7fc6f13b6974?cntId=8b12f394a64e40959fd1f8e805ecf853&utm_source=openai))
Key measures include:
- **Child Exemption Increase**: The exemption for each minor child is raised from NT$101,000 to **NT$151,500** per child. Families with multiple children benefit especially. ([mof.gov.tw](https://www.mof.gov.tw/%20/singlehtml/384fb3077bb349ea973e7fc6f13b6974?cntId=8b12f394a64e40959fd1f8e805ecf853&utm_source=openai))
- **Stacking with Preschool Deduction**: For children **aged under 6**, parents can stack this increased exemption with the “preschool special deduction”. For the first child under 6: **deduction NT$150,000**; for the second and beyond: **NT$225,000** per child. Combined with the exemption, this can effectively double or more the total deduction. ([mof.gov.tw](https://www.mof.gov.tw/%20/singlehtml/384fb3077bb349ea973e7fc6f13b6974?cntId=8b12f394a64e40959fd1f8e805ecf853&utm_source=openai))
- **Insurance Premium Claims Expanded**: Taiwan’s reforms also remove the previous cap (NT$24,000) on deductions for certain mandatory social insurance premiums, allowing full deduction for labor insurance, health insurance for farmers, national pension, military/teacher/public insurance, and more. ([mof.gov.tw](https://www.mof.gov.tw/%20/singlehtml/384fb3077bb349ea973e7fc6f13b6974?cntId=8b12f394a64e40959fd1f8e805ecf853&utm_source=openai))
## Implications & Compliance Steps
- If you support minor children or have kids under **6 years old**, plan to optimize exemptions + deductions when preparing your May 2027 filing.
- For **insurance premiums**, ensure your payments and proof of mandatory plans are well documented and include them appropriately—no longer limited by the old cap.
- Check your income tax rate—some deductions or exemptions may be subject to conditions such as your tax bracket. Double-check limits and stacking rules.
## Example Illustration
Say Parent A has:
- Two children: one aged 4, another aged 2
- Paid requisite social insurance premiums throughout 2026
They’d receive:
- Child exemptions: **2 × NT$151,500 = NT$303,000**
- Preschool special deductions: **first child NT$150,000 + second child NT$225,000 = NT$375,000**
- If insurance premiums tally NT$30,000, now fully deductible (versus previously capped).
Total deductions & exemptions = **NT$678,000** before other standard/itemized deductions. That can materially reduce taxable liability.
## Planning Tips
1. Hold all receipts and proof for preschool expenses and social insurance contributions.
2. If possible, defer income into 2026 if you’ve not yet earned much—or accelerate expenses/premiums so they land in 2026 to maximize deductions.
3. Coordinate with spouse or partner regarding dependent claims and exemption stacking.
By understanding and leveraging Taiwan’s new tax adjustments, families can secure meaningful relief. If your financial or family situation is changing, consult a tax professional to incorporate these upgrades into your 2026 tax strategy.