Tax Planning
Taiwan’s New Tax Law Cuts for Child-rearing Households: What Parents Should Do in 2026
Taiwan recently increased tax benefits for families—raising child exemption by 50% and allowing full deduction of social insurance costs—here’s what parents should know before next year’s tax filings.
By NomadicTax Research Team • 5-8 min read • September 13, 2026
## Key changes under Taiwan’s “婚育家庭再減稅” initiative
On September 11, 2026, Taiwan’s Ministry of Finance published amendments to **Article 17** and **Article 126** of the Income Tax Act to ease the burden on *child-rearing households*. ([mof.gov.tw](https://www.mof.gov.tw/singlehtml/384fb3077bb349ea973e7fc6f13b6974?cntId=901f90d254454c568df85ec5e8128c83&utm_source=openai)) The changes, effective for tax returns filed in **May 2027**, will apply for **income over calendar year 2026** (i.e. Fiscal Year 115). ([mof.gov.tw](https://www.mof.gov.tw/singlehtml/384fb3077bb349ea973e7fc6f13b6974?cntId=901f90d254454c568df85ec5e8128c83&utm_source=openai))
Main revisions:
- The **exemption for minor children** has been increased 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 premiums** (such as labor insurance, farmers’ health insurance, national pension, military/public school insurance) will now be **fully deductible** in the “itemized deductions” category—matching how national health insurance is treated. Previously, only part could be deducted due to caps. ([mof.gov.tw](https://www.mof.gov.tw/singlehtml/384fb3077bb349ea973e7fc6f13b6974?cntId=901f90d254454c568df85ec5e8128c83&utm_source=openai))
## Who will benefit most—and when
- **Age**: If you have children under 18 years old as dependent minors, expect higher exemption per child.
- **Income type**: Social insurance participants, whether via employment or self-employment, will now see full deduction of those premiums (labor insurance etc.).
- **Timeline**: For returns filed in **May 2027**, covering **calendar year 2026 (FY 115)**; so any incomes/social insurance paid in 2026 will be in scope. ([mof.gov.tw](https://www.mof.gov.tw/singlehtml/384fb3077bb349ea973e7fc6f13b6974?cntId=901f90d254454c568df85ec5e8128c83&utm_source=openai))
- **Expected impact**: Estimated 2.37 million people will benefit; total tax reduction projected at ~NT$8 billion. ([mof.gov.tw](https://www.mof.gov.tw/singlehtml/384fb3077bb349ea973e7fc6f13b6974?cntId=901f90d254454c568df85ec5e8128c83&utm_source=openai))
## Actionable advice for parents and households
1. **Track total social insurance premiums paid in 2026**: Save receipts/statements for all qualifying insurances to ensure full deduction. Includes labor, farmer’s health, national pension, etc. ([mof.gov.tw](https://www.mof.gov.tw/singlehtml/384fb3077bb349ea973e7fc6f13b6974?cntId=901f90d254454c568df85ec5e8128c83&utm_source=openai))
2. **Dependents list review**: Make sure minor children under 18 are correctly claimed. If you have children born in 2026, you’ll now claim higher exemption.
3. **Tax return strategy**: Thanks to the exemption increase, your taxable income drops—check whether this moves you into a lower marginal bracket or affects other deduction thresholds.
4. **Employer communication**: If social insurance payments are withheld or managed via employer, ensure proper documentation flows for your filings. If self-employed, ensure statements align with government records.
5. **Budget for filing in May 2027**: Keep records throughout 2026 for insurance premiums and dependent status. Consider using tax preparation software or services to estimate liability with new law.
## Comparison: HK vs Taiwan child-related reliefs
| Feature | Hong Kong | Taiwan |
|---|---|---|
| Child allowance amount per child | HK$140,000 from 2026/27 | NT$151,500 per minor child under 18 |
| Claim period for newborn additional allowance | Extended to 2 years | Full deduction of social insurance; child exemption increase |
| Dependent parent/grandparent relief | Increased allowances in HK; different regime in Taiwan | Not directly affected by this law amendment |
This law provides meaningful relief for Taiwan’s families—especially for lower- and middle-income households. Ensuring full documentation and planning for FY 2026 will help you maximise the benefits.