Taiwan's government is expanding tax breaks for families with children and reviewing the next phase of its flagship first-time homebuyer mortgage program, the Taipei Times reported on June 16.

Taiwan has one of the world's lowest birth rates, and policymakers have rolled out a series of measures to ease the burden of raising children and encourage family formation.

Under the tax relief applying in 2026, the report said, a single-salary worker living in a rented unit would be exempt on yearly wages up to NT$664,000, while dual-wage families would be exempt up to NT$1,108,000 and couples with two children aged six or younger living in a rented unit up to NT$1,685,000.

The government also provides direct subsidies, including support for families with children aged zero to two, childcare allowances for those aged two to six, and a newly introduced growth allowance of NT$5,000 per child each month.

The opposition has its own proposal. The Taiwan People's Party and the Chinese Nationalist Party have suggested 'Taiwan Future Accounts,' under which the government would open accounts for children under 12 with an initial NT$50,000, increased by NT$10,000 each year, while parents could add up to NT$100,000 annually and receive tax incentives.

Some experts, however, are cautious, arguing that allowances and tax breaks alone cannot solve the birth-rate problem and that structural factors such as housing costs, work-family balance and education burdens must be addressed together.