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) 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)
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)
- 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)
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)
- Expected impact: Estimated 2.37 million people will benefit; total tax reduction projected at ~NT$8 billion. (mof.gov.tw)
Actionable advice for parents and households
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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)
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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.
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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.
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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.
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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.