Which schemes fall under the tax incentive cap?

The main schemes covered are: home employment (50% tax credit), childcare outside the home, Pinel rental investment, FCPI and FIP, donation-related reductions (partially), energy transition expenses, SME investment (IR-PME), and forestry investments. The total of these benefits is capped at 10,000 euros per year.

Which tax benefits are excluded from the cap?

Certain benefits are not subject to the 10,000 euro cap: PER contribution deductions (these are income deductions, not tax reductions), charitable donations (within specific limits), the Malraux scheme (heritage restoration), historic monuments, and overseas investment reductions (specific 18,000 euro cap). The PER is therefore fully stackable with the tax incentive cap.

Does the PER fall under the tax incentive cap?

No, PER contributions are not subject to the tax incentive cap. The reason is that the PER operates through an income deduction (not a tax reduction). This is a fundamental legal distinction: the tax incentive cap only covers tax reductions and credits. You can therefore benefit from the PER deduction on top of the 10,000 euro cap.

How does the home employment tax credit work?

Home employment (cleaning, childcare, gardening, tutoring, elderly care) entitles you to a tax credit equal to 50% of expenses incurred, up to a limit of 12,000 euros in expenses per year (i.e. a maximum 6,000 euro tax credit). This ceiling is increased by 1,500 euros per dependent child. The resulting tax credit counts towards the global tax incentive cap.

Is the Pinel reduction subject to the cap?

Yes, the Pinel tax reduction falls within the global 10,000 euro annual cap. If your annual Pinel reduction is 4,000 euros, you have 6,000 euros of headroom left for other schemes (home employment, FCPI, etc.). In case of excess, the surplus is lost and cannot be carried forward to subsequent years. This is why it is essential to check the total of your tax benefits before each investment.

Mis à jour mai 2026

ByMottalib Radif

Tax Incentive Cap Checker

Check whether your tax reductions and credits stay within the global 10,000 euro annual cap. Add up your various tax incentives to see your remaining allowance.

Your tax reductions and credits

Scheme

Amount

€

Total reductions

5 000 €

2 scheme(s) declared

Annual cap

10 000 €

Global tax incentive ceiling

Remaining allowance

5 000 €

Remaining tax-saving capacity

Cap usage5 000 € / 10 000 €

0 €50% used10,000 €

Good news! You have 5 000 € of headroom before reaching the cap. You can still benefit from additional tax incentives (home employment, childcare, Pinel, FCPI/FIP, etc.).

Breakdown by scheme

Home employment3 000 €

Pinel2 000 €

Total5 000 €

What is the tax incentive cap?

The global tax incentive cap (plafonnement global des niches fiscales) is set at 10,000 euros per year per tax household. It limits the total amount of tax benefits a taxpayer can claim against their income tax. This cap applies to most tax reductions and credits linked to expenses or investments made by the taxpayer.

This mechanism was introduced to prevent high-income taxpayers from completely escaping income tax by stacking numerous tax relief schemes. It applies to the amount of the reduction or credit, not the amount of the expenditure. For example, if you employ someone at home for 10,000 euros per year, the tax credit is 5,000 euros (50%), and it is this 5,000 euro amount that counts towards the cap.

Certain schemes benefit from an increased cap of 18,000 euros per year: this applies to overseas investments (Girardin) and Sofica (cinema investments). This increased cap is not cumulative with the standard cap: it is a single global cap of 18,000 euros that includes the standard 10,000 euros.

Questions fréquentes

Sources and references

[1]General Tax Code - Article 200-0 A (global cap)
[2]BOFiP - BOI-IR-LIQ-20-20-10 (cap mechanism)
[3]General Directorate of Public Finances (DGFIP) - Notice 2042 C

Disclaimer: This checker provides an indicative estimate. Certain schemes have specific rules (increased overseas cap, sub-caps by category). The exact calculation depends on your complete tax situation. Consult a tax adviser for a personalised analysis.

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