A decision still under discussion, but one that could profoundly disrupt the daily lives of many households... and weaken an entire economic sector.
Popular aid but costly for the State
Established to encourage declared work and support households in their daily lives, the tax credit allows for the recovery of 50% of expenses incurred for the employment of a home employee, within certain limits. In 2023, more than 4.5 million tax households benefited from it, at an estimated cost of more than €6.5 billion per year for public finances.
In a context of severe budgetary tension and under pressure from Brussels, the French government is seeking to reduce tax expenditures. And this scheme is one of the identified targets. The Court of Auditors has also pointed this out on several occasions, considering that certain covered services, such as ironing or gardening, are not a social necessity.
A reform in the pipeline for the 2026 budget
Nothing has been finalized yet, but things are taking shape behind the scenes, as the Ministry of the Economy prepares the draft finance bill for 2026, which will be presented in the fall. Several concordant sources mention a desire to "refocus" the tax credit on the most sensitive services: childcare, assistance for the elderly or disabled, and dependency assistance.
In short, anything related to comfort (cleaning, DIY, gardening, private lessons, sports coaching, etc.) may no longer be eligible for partial reimbursement by the State. Other options are also being considered: reducing the reimbursement rate from 50% to 40%, lower ceilings, or even stricter eligibility conditions.
The final decision should be made by mid-July, as part of the budgetary roadmap presented by Bercy.
A shock feared by individuals... and professionals
The announcement of a possible reduction in the system immediately raised concerns among industry players. The Federation of Private Employers (FEPEM) warns of the risk of a massive return to undeclared work. According to a survey commissioned by it, 77% of private employers could stop declaring their employees if the tax benefit disappeared.
For personal service companies, there is fear of a loss of customers and therefore jobs. For many, this tax credit is not just a bonus: it is what allows households to use these services without putting themselves in financial difficulty. And it is often the middle classes who resort to it, those who do not benefit from benefits or municipal services.
For more than 20 years, France has relied on this tax lever to professionalize the sector, guarantee rights to employees, and combat undeclared work. Too drastic a reform could halt this momentum. While the elimination of the tax credit is currently only partially envisaged, the signal sent remains strong: that of a refocusing of public spending, even at the cost of weakening a key sector.
For the 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 remain attentive to the announcements from Bercy from mid-July. An amendment could be tabled as soon as the school year starts to change the rules from January 1, 2026. In the meantime, it's best not to incur new expenses thinking that they will automatically be covered tomorrow as they are today.
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