Taiwan plans to raise the amount of income shielded from tax for basic living costs, good news for families with children.

• The tax-free allowance for basic living expenses could rise to about NT$220,000 per person for 2026 income, up NT$7,000 from this year.
• The amount is fixed by law at 60% of the previous year's average take-home pay, which climbed 3% last year.
• Mostly families with kids benefit, since single people and childless couples already do better under the standard deductions.
• A family of four with two young children would see NT$28,000 more in deductions, saving between NT$1,400 and NT$5,600 depending on their tax rate.

Outlook: The finance ministry will confirm the exact figure at the end of this year, taking effect for taxes filed in 2027.