Taiwan's legislature passed an income tax change that gives families with young children a bigger tax break, good news for parents and a small hit to government revenue.

• The tax-free allowance for each minor child rises 50%, to about NT$151,500.
• The change takes effect at the start of 2026 and applies to tax filings next May.
• The government expects around 2.37 million families to benefit, at a cost of roughly NT$8 billion in lost tax revenue.
• Labor, farmer, national pension, and military/civil servant insurance premiums can now be deducted without the previous NT$24,000 yearly cap.
• Lawmakers also asked the finance ministry to study easing the tax load on salary earners by the end of 2026.

Outlook: Families will see the benefit when they file next spring, and pressure is building for broader relief on wage income.