Tax Credit: How Much Does It Actually Pay Out?

In 2023, French tax households received an average tax credit of 1,046 euros, according to statistics from the General Directorate of Public Finance (DGFiP). 

This tax credit is available to taxpayers who have incurred expenses for domestic employment, childcare for children under six years of age, or the payment of union dues.

In-home employment is the most common expense category for claiming a tax credit. Of the 8.1 million tax households that received a tax credit in 2023, 4.6 million reported expenses related to in-home employment, for an average tax benefit of 1,204 euros. Home-based employment services eligible for the tax credit include in-home childcare, assistance for the elderly or people with disabilities, and house and yard maintenance, among others. The tax credit can cover up to 50% of the expenses incurred, up to a limit of 12,000 euros per year, for a maximum tax credit of 6,000 euros.

Parents of children under the age of six are also eligible for a tax credit for out-of-home child care expenses, such as daycare centers and child care providers. In 2023, 1.9 million tax households received an average tax credit of 857 euros for child care. The tax credit can cover up to 50% of the expenses incurred, up to a limit of 2,300 euros per child per year, for a maximum tax credit of 1,150 euros per child per year.

Finally, union dues also qualify for a tax credit, although this credit is smaller than the two previous expense items. 

In 2023, 1.27 million tax households received an average tax credit of 113 euros for union dues. The tax credit is equal to 66% of the union dues paid, up to a limit of 1% of gross annual income.

In summary, French tax households received an average tax credit of 1,046 euros in 2023, primarily due to expenses related to domestic employment and child care. Union dues also allowed some taxpayers to receive a tax benefit, although this benefit was smaller. To claim these tax credits, it is important to report eligible expenses on your annual tax return.