Nursing homes and dependency: 25% tax reduction (%), which expenses count and what is the limit?

The tax credit is 25% of expenses incurred for a person residing in a nursing home (EHPAD), up to a limit of €10,000 in expenses per year per person. Therefore, the maximum credit is €2,500. Accommodation costs alone are not sufficient; dependency-related expenses must also be considered. Medical care costs are excluded. Any benefits received (APA, social assistance for accommodation, housing allowance) are deducted before the calculation.

This page answers a specific question: which expense categories are included in the calculation, and at what amount the tax reduction ends. It does not cover facility rates, dependency level (GIR), or in-home care. For information on the schedule and supporting documents, please refer to the page on the website entitled "Dependency Expenses in Facilities: Tax Reduction.".

The principle in a table

Sources: economie.gouv.fr (fact sheet written on 24/04/2026), service-public.gouv.fr (fact sheet verified on 15/04/2026) and BOFiP, BOI-IR-RICI-140.

Who can ask for it?

Three conditions emerge from the official documents.

• To be a tax resident in France. The information sheet on economie.gouv.fr sets out the conditions. According to the BOFiP (§ 20), non-residents taxed solely on their French-source income are not eligible for the reduction. The BOFiP makes an exception for "Schumacker non-residents," as defined by the case law of the Court of Justice of the European Union, who can benefit from it provided all other conditions are met.
• To be admitted to a nursing home or long-term care facility. These are the two types of establishment mentioned in the fact sheet on economie.gouv.fr.
• An establishment located in France or in another State of the European Economic Area (EEA), except Liechtenstein. This is the wording used by service-public.gouv.fr; the BOFiP (§ 70) also excludes Liechtenstein. According to the BOFiP, the taxpayer must, upon request from the tax authorities, prove that the establishment provides services of a nature and quality comparable to those of French establishments.

What goes into the database, line by line

A stay in a nursing home involves three categories of expenses. The BOFiP (Official Bulletin of Public Finances) and the economie.gouv.fr fact sheet treat them differently.

Accommodation alone is excluded

The information sheet on economie.gouv.fr is straightforward: "If you only pay for accommodation, you are not eligible for the tax reduction." The BOFiP (Official Bulletin of Public Finances) says the same thing: taxpayers "who only incur accommodation expenses" cannot benefit from it.

According to the BOFiP, accommodation is included in the base provided that dependency expenses are added to it.

The subsidies are deductible

The tax base is the actual expenses incurred. The information sheet on economie.gouv.fr instructs taxpayers to deduct any subsidies received from the declared amount, specifically mentioning the personalized autonomy allowance (APA), the social assistance for accommodation (ASH), and the housing allowance. The BOFiP (Official Bulletin of Public Finances) states that the reduction "applies only to the expenses actually incurred by the individuals being cared for." The declared figure is therefore net of subsidies.

Three rules about the ceiling

• The limit is per person accommodated., not per household: «10,000 euros per person accommodated» according to the economie.gouv.fr fact sheet.
• No pro rata. The BOFiP (Official Bulletin of Public Finances) states: "The ceiling is not subject to any pro rata reduction." Starting work during the year does not reduce the €10,000 limit.
• Excluding the overall cap. The BOFiP (Official Bulletin of Public Finances) states that the reduction "is excluded from the scope of the overall cap on tax benefits." It is not included in the calculation of this overall cap.

Declare, then be paid

The statement

Expenses are declared under "Accommodation expenses in a facility for dependent persons," in the "Tax reductions – Tax credits" section of the online tax return. The information sheet on economie.gouv.fr (written on April 24, 2026) refers to boxes 7CD and 7CE, located on form 2042 RICI for paper returns. Refer to the box number on the form for the year of your return.

The service-public.gouv.fr website states that "the 2027 tax return for 2026 income will begin in April 2027." The BOFiP (Official Bulletin of Public Finances) specifies that the tax reduction applies to the year in which the expenses are paid. By comparing these two sources, expenses paid in 2026 should be declared at that time: this is our interpretation, to be confirmed by the service-public.gouv.fr website.

The deposit, the balance, the possible refund

• In January : an advance payment of 60 %, "depending on the amount of the tax reduction received the previous year".
• In the summer "The balance will be paid to you in the summer, based on your actual expenses."«
• In September : if the deposit was too high, "you will have to repay the overpayment in September".

If the reduction exceeds the tax

The information sheet on economie.gouv.fr (written on April 24, 2026) states that if the tax reduction exceeds the tax due, "no refund is possible" and the tax liability is reduced to zero euros. For households with little or no tax liability, check this information sheet before expecting a refund.

Supporting documents

Both forms require that supporting documents be kept for 3 years, in case the administration requests them.

Numerical example (fictitious profile)

Situation. Mr. Aubry, 84 years old, is a tax resident of France and resides in a nursing home (EHPAD) located in France. It is assumed that he pays his own expenses and that his tax liability is at least equal to the tax reduction. In 2026, he paid €31,200 in accommodation fees and €3,900 in dependency care fees. He received €2,400 in APA (Personalized Autonomy Allowance) and €3,600 in housing allowance for the same year. These amounts are hypothetical.

Issue. What is the reduction, and does the ceiling apply?

Strategy. Add dependency and accommodation, deduct aid, retain the smaller amount between the net base and €10,000, then apply 25 %.

Result.

The ceiling applies: €19,100 of net spending beyond €10,000 does not produce any additional reduction.

Additional assumption: Mr. Aubry received a €2,500 discount the previous year. The January advance payment is therefore €1,500 (60 % of €2,500).

Alternative scenario: Ms. Lefèvre entered the facility mid-year. It is assumed that she paid her own expenses, which were paid in the same year. She paid €4,800 for accommodation and €2,100 for dependency care, totaling €6,900. She received €900 in subsidies for the same year. Her net expenses are €6,000, less than €10,000. Her reduction is €1,500. The maximum benefit is not reduced proportionally to the length of stay.

These profiles are fictitious. Expenses and subsidies are hypothetical and do not reflect any actual facility fees. The figures illustrate the calculation and do not guarantee the outcome of your application.

What changes depending on your situation

• The type and location of the establishment. Nursing homes or long-term care facilities, in France or in the EEA (excluding Liechtenstein).
• Your tax residence. The reduction requires a tax residence in France (BOFiP exception for "Schumacker non-residents").
• The nature of the expenses. Without dependency expenses, accommodation alone provides nothing.
• The aid received. They reduce the base: their amount determines the effect of the ceiling.
• Your tax bracket. See above what the economie.gouv.fr fact sheet says if the reduction exceeds the tax.
• Who pays?. A family paying for a parent's expenses should check who receives the discount: this page does not resolve this point.

The rule depends on your situation. No results are guaranteed.