China Raises Child and Parent Tax Breaks to Ease Family Burdens

China is increasing personal income tax deductions for child care, parental care and children’s education spending, the latest measures to try to address the country’s rapidly changing demographics and boost household consumption.

Effective from January 2023, the tax reduction for taking care of children under three and for children’s education will each be doubled from 1,000 to 2,000 yuan ($274) per month, the State Council said in a statement Thursday. The deduction to offset the costs of taking care of elderly parents will rise 50% to 3,000 yuan per month.

Chinese policymakers have been trying to address both a falling ...