Dependency care expenses in institutions: the 25% tax reduction (%), capped at €10,000 per resident

The tax credit amounts to 25% of expenses incurred, up to an annual limit of €10,000 per person accommodated. Therefore, the maximum credit is €2,500 per person accommodated. It applies to dependency and accommodation expenses paid in a care facility, after deduction of any subsidies received. There is no age limit.

This page covers the calculation, conditions, and payment schedule. It does not cover nursing home rates, social assistance accommodation ceilings, or the box numbers on the declaration form, which can be found on the form for the year.

The principle in a table

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

Who can benefit from it?

Official sources stipulate the following conditions, among others.

• To be welcomed into an establishment. The information sheet on service-public.gouv.fr concerns nursing homes and long-term care facilities. The BOFiP (Official Bulletin of Public Finances) describes social and medico-social establishments and services that accommodate elderly people.
• To be a tax resident in France. The service-public.gouv.fr website sets out this condition. The situation of a non-resident taxpayer must be verified with the source.
• The location of the establishment. An establishment located in France is the usual case. For an establishment located outside of France, the rule should be verified with the source before any decision is made.
• To support dependency expenses. According to the BOFiP, a taxpayer who only bears accommodation expenses cannot benefit from the reduction.

What goes into the database

The basis consists of two categories of expenses, minus subsidies.

A nursing home charges a fee for accommodation and a fee for dependency care, which is the responsibility of the elderly resident. The medical care fee is covered by health insurance. To understand how your bill is broken down, the residency contract and the supporting documents from the facility are the key documents.

The subsidies are deducted.

Benefits and allowances related to dependency or accommodation must be deducted from the taxable base. The BOFiP (Official Bulletin of Public Finances) specifically mentions the personalized autonomy allowance (APA), departmental social assistance, and housing allowance. The list is introduced by "notably": it is not exhaustive. The tax return therefore concerns the amount of expenses after these benefits have been received.

In nursing homes, three forms of assistance are available to help pay for accommodation and care costs: the APA (Personalized Autonomy Allowance), housing assistance, and social assistance for accommodation (the latter only available in certain nursing homes). These assistance programs can be combined. Details can be found on the page "Nursing Homes: Rates and Financial Assistance.".

Two useful rules about the ceiling

• No pro rata. The BOFiP (Official Bulletin of Public Finances) states: "The ceiling is not subject to any pro rata reduction," including when expenses were incurred for only part of the year. Therefore, entering a care facility during the year does not reduce the €10,000 ceiling.
• Excluding the overall cap. The reduction is excluded from the overall cap on tax benefits. It does not use up this cap.

How and when is the benefit paid?

The statement

Expenses are declared under the heading "Expenses for care in a facility for dependent persons" on the income tax return, both online and on the paper form. The information sheet on service-public.gouv.fr indicates that the 2027 tax return (for income earned in 2026) will begin in April 2027. Therefore, expenses paid in 2026 must be declared in 2027, as the year of payment is the relevant year.

The boxes to be filled in have numbers specific to each year of the form. Read them on the form for that year.

The January deposit and the summer balance

• In January : "An advance payment of 60 % is paid to you in January", 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 advance payment received in January was too large, the overpayment must be refunded in September.

The processing of the advance payment and the balance for a household with no tax to pay should be checked with the source before relying on a payment.

Supporting documents

Keep the supporting documents for 3 years in case the tax authorities request them. The BOFiP (Official Bulletin of Public Finances) specifies that taxpayers must be able to justify the amount of expenses for each member of the tax household being housed.

Numerical example (fictitious profile)

Situation. Mrs. Delorme, 86 years old, is a tax resident of France and resides in a nursing home (EHPAD) located in France. She incurs expenses related to dependency and accommodation. She is subject to income tax, with a tax liability at least equal to the calculated tax reduction. In 2026, she paid €33,000 in accommodation fees and €4,200 in dependency care fees. She received €7,200 in benefits (APA and housing allowance). These figures are hypothetical.

Issue. What is the tax reduction calculated in this scenario, and does the cap apply?

Strategy. Add together the dependency and accommodation expenses, deduct the aid, retain the smaller of the two amounts between the net base and €10,000, then apply 25 %.

Result.

The ceiling applies: €20,000 of net spending beyond €10,000 does not produce any additional reduction.

Alternative scenario: Mr. Garnier is a French tax resident and entered a nursing home (EHPAD) in France in November 2026. He incurs dependency and accommodation expenses. He is taxable, with the tax due at least equal to the calculated tax reduction. In 2026, he paid two months of expenses: €5,600 for accommodation and €700 for dependency care, totaling €6,300, without receiving any assistance at this stage. These figures are hypothetical. His tax base is €6,300, which is less than €10,000. His calculated tax reduction is €1,575. The €10,000 threshold is not reduced proportionally.

These profiles are fictitious. The spending and aid amounts are hypothetical and do not reflect any actual facility rates. The figures illustrate the calculation and do not guarantee any outcome for your specific situation.

What changes depending on your situation

• The location and type of establishment. An establishment located outside of France should be verified with the source.
• Your tax residence. The service-public.gouv.fr website specifies the requirement of tax residency in France. Non-resident status should be verified with the source.
• Who pays?. The reduction applies to expenses incurred. In the case of expenses paid for another person being accommodated, verification with the source is required before any declaration.
• The aid received. They reduce the base: their amount determines the effect of the ceiling.
• The household's tax situation. Taxable or not: the treatment of the advance payment for a household with no tax to pay is checked with the source.
• The entry date. Expenses are counted in the year they are paid.

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