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Fiscal welfare (or social tax expenditures) is a policy instrument associated with Liberal welfare states that has been on the rise across many European welfare states. This book sheds light on the use and effects of fiscal welfare in France and Sweden. Focusing on the introduction of a 50% tax deduction on domiciliary care and household services, it explores the politics behind this scheme, its effects on care provision as well as on labour market dualisation, highlighting how fiscal welfare contributes to structuring both a social division of welfare and a social division of labour. This ground-breaking book opens a new field of research by exploring fiscal welfare, the political uses of this policy instrument, the patterns of inequalities it gives rise to and its policy feedback effects.