Tax Benefits for Families in France: What You Need to Know

If you have children or support family members financially, you may be eligible for various tax advantages in France. These benefits can significantly reduce your income tax through credits, deductions, or reductions, depending on your specific situation. Here’s a comprehensive guide to the main family-related tax reliefs available and the conditions for claiming them.

Overview of Family Tax Benefits

1. Childcare Tax Credit

You may qualify for a tax credit if you pay for childcare outside your home for a child under six years old.

Conditions

To be eligible:

• The child (or grandchild if the adult child is still part of your household) must be your dependent.

• They must be under age 6 on January 1 of the tax year.

• Care must be provided by a registered professional or approved facility (e.g., nursery, daycare, certified childminder).

Amount

• The credit is equal to 50% of eligible expenses, up to €3,500 per child, which means a maximum credit of €1,750.

• For shared custody, each parent can claim up to €1,750 in expenses, resulting in a credit of €875.

Eligible Expenses

Only direct childcare costs are considered (excluding meals). Any financial assistance from CAF or your employer must be deducted.

✅ Note: If the child is cared for at home, you’re instead eligible for the home employment tax credit.

Advance Payment

As part of the withholding tax system, 60% of the estimated tax credit is paid in January based on the previous year’s declaration. The balance is settled in the summer after your tax return is filed.

If the advance exceeds your actual entitlement, you’ll need to repay the excess in September.

Declaration

Report childcare expenses under the section “Frais de garde des enfants de moins de six ans” in your income tax return.

2. Schooling Tax Reduction

If your dependent child is enrolled in secondary or higher education, you may benefit from a tax reduction.

Conditions

Your child must:

• Be your dependent or attached to your household for tax purposes.

• Be enrolled in secondary school (collège, lycée) or higher education as of December 31 of the tax year.

• Not be employed or under a job contract (scholarship or internship compensation is allowed).

✅ Note: Courses taken remotely (e.g., through CNED) are eligible if part of an initial education program. The institution can be public or private, in France or abroad.

Amount

In shared custody cases, the amount is halved for each parent.

Declaration

Declare the number of children pursuing studies under “Nombre d’enfants à charge poursuivant leurs études” in your annual return.

3. Deducting Alimony and Family Support

You may deduct alimony payments made to a child, former spouse, or a dependent parent/grandparent if certain conditions are met.

Alimony to a Child

You can deduct financial support paid for a child not counted as your dependent, including both minors and adult children. The deduction amount varies based on the child’s age and whether the amount is court-ordered.

⚠️ Note: No deduction is allowed in joint custody cases since you’re already benefiting from increased tax shares.

Alimony to a Former Spouse

Deducting payments to a current or former spouse is possible if:

• You are legally separated or divorced.

• You file separately.

• Payments result from a court decision or mutual consent divorce agreement.

• Payments cover living expenses (e.g., housing, food).

Married but living apart? Contributions to marital expenses may be deductible if:

• Set by a judge.

• You and your spouse file separate returns.

Support for Ascendants

You can deduct payments made to a parent or grandparent in financial need, if:

• You’re legally obligated to support them.

• The support covers essential needs (food, shelter, healthcare).

• It’s proportional to your financial capacity.

If you host someone aged 75 or older in your home, a flat deduction of €4,039 may apply under certain conditions.

⚠️ Important: You cannot claim this deduction if you’re already benefiting from a tax credit for home care assistance for that same person.

4. Home Employment Tax Credit

Hiring help at home (e.g., nanny, cleaner, tutor) gives you access to a 50% tax credit on eligible expenses, regardless of your employment status.

Key Points:

• Annual spending cap: €12,000, with possible increases based on dependents or disabilities.

• Eligible services: childcare, home cleaning, academic tutoring, etc.

• Since 2022, the “instant advance” system allows for direct deduction at the time of payment.

What’s New in 2025?

As part of the 2025 Budget Law, deduction limits for alimony paid to adult children or dependent parents have been updated for income earned in 2024 and declared in 2025.