In Belgium, families with young dependents receive tax reliefs depending on the type of care used. In this paper weanalyze the Federal government policy that allows families using formalchildcare to deduct their expenses out of their taxable income. For familiesusing parental and informal care, a tax credit is grantedfor each child under three years old. We find that tax deduction ofchildcare expenses is a progressive tax policy among the users of formal daycare. On the contrary, when considering all families with young dependentsthe tax policies for childcare are regressive.
