Defiscalization of Child Support Payments Advances in France's 2026 Budget

On October 20, 2025, the French National Assembly's Finance Committee approved an amendment to the 2026 budget to make child support payments non-taxable for the parent receiving them, addressing longstanding fiscal inequities in separated families. Proposed by Socialist MP Philippe Brun, this amendment exempts child support payments up to €4,000 per child annually, capped at €12,000 per year. This change affects over a million families, especially single-parent households, which are predominantly led by women and face higher poverty rates.

Currently, child support recipients must include these payments as taxable income, creating a financial disadvantage. Fathers, typically the paying parents, benefit from a tax deduction, while mothers often experience a 'double penalty'—taxation on received support alongside reduced social benefits. The new measure also offers paying parents a half tax share per child to address their dual taxation concerns.

To fund this defiscalization, the budget proposes a tobacco tax increase, with safeguards to prevent wealthy individuals from manipulating benefits. The average monthly child support payment is about €170, yet 30% of families confront unpaid support.

This is the eighth legislative attempt to resolve this issue, with prior initiatives hampered by political obstacles such as the use of the 49.3 procedure. Associations representing single-parent families, frequently hindered by recent reforms, are closely monitoring this evolution.

The amendment still requires approval by the full National Assembly, leaving final adoption uncertain amid ongoing political deliberations. Alongside this, the Finance Committee enacted other tax reforms in the 2026 budget, including adjustments to income tax brackets and measures targeting high earners and expatriates.