If you are self-employed in Belgium and have children, they can be considered tax dependents. This increases your tax-free allowance, reducing the income tax you owe. However, there are clear conditions that must be met. This guide explains exactly how the system works for income year 2026 (assessment year 2027).
What does “tax dependent child” mean?
A child is considered tax dependent if:
- they are part of your household on January
- they do not have too much of their own income
- they do not receive salaries from a company in which you have decisive control
The tax authorities automatically assign the child to the parent with the highest taxable income when parents are jointly assessed.
➡️ Note: this is completely separate from the child benefit (Groeipakket). A child can continue receiving the child benefit but no longer be tax dependent.
How does the tax-free allowance work?
Every taxpayer is entitled to a tax-free allowance. This is the portion of your income on which no personal income tax is due.
For income year 2026, the basic tax-free allowance is €11,200.
If you have dependent children, the tax-free allowance is increased. The more children you have, the higher the increase. From four children onward, you can receive a supplement of nearly €18,500.
Increase per number of children
| Number of children | Tax-free allowance increase |
|---|---|
| 1 child | €1,960 |
| 2 children | €5,060 |
| 3 children | €11,310 |
| 4 children | €18,480 |
| Each child beyond 4 | €7,060 |
Additional supplements
Child under 3 years old
For each child under 3 years old, you receive an additional €740, provided you did not apply the childcare tax deduction.
Child with a recognized disability
A child with a recognized disability is considered as two children for the purposes of calculating the supplement. A family with one child with a disability therefore receives the same increase as a family with two children, which is €5,060.
How much tax benefit does this actually provide?
The increase in the tax-free allowance is applied at your highest tax rate (marginal rate).
For example, if you fall into the 45% bracket and lose the supplement for one child of €1,960:
1,960 × 45% = €882 extra tax
If you are in the 25% bracket, the difference is approximately €490. The actual benefit therefore depends on your total income.
When is a child no longer tax dependent?
A child must not have too much of their own income. The tax authorities look at so-called net means of subsistence.
For income year 2026, a child may have a maximum of €7,550 in net means to remain tax dependent on a parent assessed jointly. Higher limits apply to single parents.
What are net means of subsistence?
These are not simply gross earnings. The tax authorities consider:
• professional income • maintenance payments received • certain allowances
Child benefits are not included. Study grants usually are not included either.
Certain exemptions and standard deductions can also be applied, meaning the effective gross income limit is often higher than €7,550.
Student work in 2026: two separate systems
Two separate rules exist, which operate independently:
- The 600-hour rule, which determines whether the student pays reduced social security contributions and whether the child benefit remains.
- The net means rule, which determines whether the child remains tax dependent.
1️⃣ The 600-hour student work rule
In 2026, a student may work a maximum of 600 hours under the student status.
If the student remains within this limit:
• they pay reduced social security contributions • the right to the child benefit is preserved
If more than 600 hours are worked, regular social contributions apply and the child benefit may be suspended for certain months.
Important: this hours rule has no direct influence on remaining tax dependent.
2️⃣ The fiscal rule: net means
For personal income tax, the tax authorities look at the child’s net means.
For income year 2026:
- A specific exemption of €3,370 for income from student work
- A standard deduction of 20% on the remaining amount
- A maximum limit of €7,550 in net means
This means:
The first €3,370 from student work is not counted. On the remaining amount, 20% is deducted. The resulting figure must not exceed €7,550. If it remains below, the child stays tax dependent.
A student can stay within 600 hours and still not be tax dependent if the income is too high. Conversely, a student can work more than 600 hours and pay normal social contributions, but remain tax dependent as long as net means remain below the limit.
Example: is my child tax dependent?
Suppose your child earns €10,500 gross as a student in 2026.
Step 1: student exemption 3,370 € is exempted. If the child works as a regular employee, this exemption does not apply.
10,500 − 3,370 = 7,130 €
Step 2: standard deduction of 20% 7,130 × 20% = 1,426 € 7,130 − 1,426 = 5,704 € net means
✅ This is below the €7,550 limit. The child remains tax dependent.
How much may a student earn without losing the child benefit?
For the child benefit, the income is not considered; only hours worked matter. In Flanders, the child benefit is paid via organizations like FONS or Parentia.
In 2026, a student may work a maximum of 600 hours per calendar year. Staying within this limit preserves the basic child benefit. Exceeding 600 hours may result in suspension for months with excess hours.
➡️ Important: a student may retain the child benefit but no longer be tax dependent, or vice versa. Hours are counted for child benefits; income is counted for tax dependency.
What if the limit is exceeded?
If net means exceed €7,550, the parent loses the supplement on the tax-free allowance. This can have a noticeable effect. At 45% tax, losing the €1,960 supplement for one child adds roughly €880 extra tax.
Carefully monitoring student income is therefore worthwhile.
Conclusion
Having children as tax dependents can significantly reduce the tax bill for self-employed parents. The benefit rises quickly from three children onward.
Once a child has income, it is crucial to ensure the net means limit is not exceeded. Even a small excess can cost hundreds of euros in additional tax.
If uncertain about a specific situation, running a simulation or seeking advice before closing the income year is recommended.
