Taiwan is cutting taxes for parents, a clear win for families with young kids and a small hit to government revenue.

• Lawmakers raised the tax exemption for each minor child by 50%, starting this year.
• The change should help 2.37 million people and save them about NT$8 billion in taxes.
• Parents of kids under 6 can stack the bigger exemption on top of the existing preschool deduction, roughly doubling the break for a second child.
• The cap on deducting labor, farmer, pension, and public-sector insurance premiums was scrapped entirely.
• The savings only show up when people file their 2026 returns in 2027.

Outlook: Tax offices will rewrite forms and push public outreach ahead of the 2027 filing season, with the aim of nudging Taiwan's low birth rate higher.