A decision still under discussion, but which could deeply upset the daily life of many households … and weaken an entire economic sector.
Popular but costly help for the state
Established to promote the declared work and support households in their daily life, the tax credit makes it possible to recover 50 % of the expenses incurred for the employment of an employee at home, up to the limit of certain ceilings. In 2023, more than 4.5 million tax households benefited, at an estimated cost of more than 6.5 billion euros per year for public finances.
In a context of strong budgetary tension and under the pressure of Brussels, the French government seeks to reduce tax expenditure. And this device is one of the targets identified. The Court of Auditors has also pointed it out on several occasions, believing that certain services covered, such as ironing or gardening, do not come from a social necessity.
A reform in the boxes for the 2026 budget
Nothing has yet been acted, but things are clarified behind the scenes, because the Ministry of the Economy is preparing the finance bill for 2026, which will be presented in the fall. Several concordant sources evoke a desire to “refocus” the tax credit on the most sensitive benefits: childcare, assistance to the elderly or with disabilities, aid for dependence.
Clearly, everything related to comfort (cleaning, DIY, gardening, private lessons, sports coaching, etc.) may no longer be eligible for a partial reimbursement by the State. Other options are also studied: drop in the reimbursement rate from 50 % to 40 %, decreased ceilings, or even more strict eligibility conditions.
The final decision should be arbitrated by mid-July, as part of the budget roadmap presented by Bercy.
A shock dreaded by individuals … and professionals
The announcement of a possible reduction in the system immediately aroused the concern of players in the sector. The Federation of Individuals Employers (FEPEM) alerts the risk of massive return to unsuccessful work. According to a survey commissioned by him, 77 % of individual employers could give up declaring their employee if the tax advantage disappeared.
On the side of personal service companies, there is a fear of loss of customers and therefore jobs. For many, this tax credit is not a simple bonus: this is what allows households to use these services without getting into financial difficulty. And it is often the middle classes that use it, those that do not benefit from allowances or municipal services.
For more than 20 years, France has been betting on this tax lever to professionalize the sector, guarantee rights to employees, and fight black work. Too brutal reform could stop this dynamic. If the disappearance of the tax credit is currently only envisaged in a partial manner, the signal sent remains strong: that of a refocusing of public spending, even at the cost of weakening a key sector.
For households concerned, nothing changes for the moment
The 50 % tax credit is still applicable in 2025, and the declarations made this year remain valid. But we will have to be attentive to Bercy’s announcements from mid-July. An amendment could be deposited upon the start of the school year to modify the rules from January 1, 2026. In the meantime, it is better not to initiate new expenses by thinking that they will be automatically covered tomorrow as they are today.
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