Tax decreaseEndedIncome taxNational

Home employee: ceiling of the tax reduction raised to €12,000 with €1,500 increases per child or elderly person

Article 87 of the 2005 Finance Act amends Article 199 sexdecies of the General Tax Code. For spending from 1 January 2005, the ceiling of spending eligible for the tax reduction for employing a home worker rises from €10,000 to €12,000, plus €1,500 per dependent child and per household member over 65, up to €15,000. The ceiling for households with a disabled member rises from €13,800 to €20,000. The reduction remains 50% of eligible spending.

Measure originators

InitiatorGVT

Dominique Bussereau

Gouvernement

InitiatorGVT

Nicolas Sarkozy

Gouvernement

Amount

€12,000/year

Impact on public finances

Costs €52m/yr2006 estimate · State

Source of the estimate: Sénat, rapport général n° 74 (2004-2005), tome III, examen des articles de la seconde partie (article 63) (Official figure)

A positive amount is revenue or savings for public finances; a negative amount is a cost or lost revenue.

Effective date

1 January 2005

Measure impact

A couple with two children employing a home helper can deduct up to €7,500 of tax per year (50% of €15,000) instead of €5,000; the increase benefits taxpaying households whose spending exceeded €10,000.