Home employment: 50% tax credit (%) and ceilings

The tax credit for employing a home-based worker is equal to 50% of the expenses incurred during the year. These expenses are capped at a limit that varies depending on your situation: €12,000 in general (i.e., a maximum credit of €6,000), up to €15,000 with the applicable bonuses, €15,000 for the first year of direct employment (€18,000 with the applicable bonuses), and €20,000 in certain disability situations. The information sheet on service-public.gouv.fr, verified on April 15, 2026, shows the same limits for employment in 2025 and 2026.

This page deals with the interest rate and limits. It does not cover the list of eligible activities or the immediate advance: a dedicated page covers those. It also does not cover childcare outside the home, nor the specific cases of certain non-residents.

The principle: 50 % of expenses, within a limit

The tax credit applies to the employment of a home-based worker, whether directly or through an agency. Three official sources give the same rate: service-public.gouv.fr, economie.gouv.fr, and the BOFiP (BOI-IR-RICI-150-20). The BOFiP (§ 220) sets the tax benefit rate at 50% of eligible expenses within the specified limits.

According to the BOFiP, the spending limit is assessed per tax household, regardless of the number of employees.

Spending limits

The amounts of €6,000, €7,500 (first year), and €10,000 are those displayed on service-public.gouv.fr. The amounts of €7,500 (including surcharges) and €9,000 are the result of the calculation provided; the information sheet does not include them.

The €1,500 surcharge

The €12,000 limit is increased by €1,500 in the following cases:

• per dependent child (€750 in case of shared custody); ;
• per household member aged over 65; ;
• by an ascendant over 65 years of age. According to economie.gouv.fr, the ascendant must meet the conditions to benefit from the APA, and the services are provided at their home.

The surcharges cannot raise the ceiling beyond €15,000.

The first year of direct employment

The service-public.gouv.fr website specifies a spending limit of €15,000 for the first year you directly employ a home-based worker, resulting in a maximum credit of €7,500. Additional amounts are added to this limit, but cannot exceed €18,000 in total.

The BOFiP (Official Bulletin of Public Finances) links this ceiling to the direct employment of an employee. It maintains the standard limit when using an association, company, or registered organization.

Disability situations: €20,000

The limit is increased to €20,000 per year, meaning a maximum tax credit of €10,000. No additional increases are permitted. According to economie.gouv.fr, this applies particularly when a household member holds a disability card with a rating of at least 80 (%) or receives a third-category disability pension. The BOFiP (Official Bulletin of Public Finances) also applies to households with a child receiving the special education allowance supplement. The exact conditions should be checked on the information sheet before this limit is applied.

The false ceilings

Three activities have their own annual limit per tax household. They are included in the annual limit, not in addition to it.

The example from the service-public.gouv.fr website: home maintenance €2,500 and minor repairs €600. Repairs are limited to €500. The total amount claimed is €3,000, resulting in a credit of €1,500.

What goes into the database

• In direct employment : in particular net salaries and employee and employer contributions, according to the BOFiP.
• With an organism : the amounts invoiced, excluding goods.
• The aid received to finance employment are deducted from expenses. The BOFiP cites the APA, the CMG and employer assistance.
• The payment Only certain payment methods are accepted. A deposit paid is not considered payment. An invoice paid in cash is not accepted as proof of payment.

The basic conditions

• You must have your tax residence in France.
• The job is performed at your home (primary or secondary residence, or a residence for the elderly) or at the home of one of your ascendants (see the allowance for ascendants above). The BOFiP specifies that the residence must be located in France.
• You cannot benefit from the advantage when the employee is a member of your tax household.
• The BOFiP indicates that no age, income or activity requirements are imposed.

How the credit returns to you

The credit is applied against income tax. If it exceeds the tax due, the excess is refunded, according to the BOFiP (French Official Tax Bulletin).

According to economie.gouv.fr, expenses are declared in box 7DB of the annual tax return. The service-public.gouv.fr information sheet indicates that home employment expenses paid in 2026 must be declared in 2027. For employment in 2025, it states that expenses paid via Cesu or Pajemploi are pre-filled in the income tax return and should be verified.

An advance payment of 60 %, calculated based on the tax credit received the previous year, is paid in January 2026 (for employment in 2025), then in January 2027 (for employment in 2026). The balance is paid in the summer, based on actual expenses.

The link with the overall cap

The BOFiP BOI-IR-LIQ-20-20-10-10 classifies the tax credit granted for sums paid for employing a domestic worker (Article 199 sexdecies of the French General Tax Code) as a benefit subject to the overall cap of €10,000 per year. The calculation of this cap is not detailed here. It is verified if you combine several tax reductions and credits.

Numerical example (fictitious profile)

Situation. The Lemoine family (fictitious profile) has two fully dependent children (no shared custody; with shared custody, the supplement is €750 per child). They directly employ a home-based caregiver. Their annual expenses (net salary and social security contributions) amount to €17,000. No subsidies are deductible. No other household members or dependents over 65 are eligible for the supplement (assumptions of the fictitious profile).

Issue. What is the tax credit, depending on whether the year is the first year of direct employment or a subsequent year?

Strategy. Calculate the applicable ceiling in each case, retain the expense within this limit, apply 50 %.

• Subsequent years: €12,000 + 2 x €1,500 = €15,000, which is the maximum of the increases.
• First year: €15,000 + 2 x €1,500 = €18,000, which is the maximum for this year.

Result.

In this hypothetical scenario, the first year grants €1,000 more in credit than the following year. The figures illustrate the calculation. They do not reflect your individual circumstances.

What changes depending on your situation

• Instructions for use : direct employment or organization, which determines access to the ceiling for the first year.
• Household composition : dependent children, shared custody, household members or ascendants over 65 years of age.
• A situation of disability, which sets the ceiling at €20,000 without any increase.
• The nature of the services, which can affect a false ceiling.
• The aid received, deduced from the base.
• The other benefits you accumulate, with regard to the overall cap.

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