How is the retirement bonus taxed?

Question to an expert

I received a retirement bonus in 2024, how will it be taxed?

Unlike retirement compensation, voluntary retirement or early retirement compensation is subject to social charges, the general social contribution (CSG), the contribution to the repayment of the social debt (CRDS) and income tax, unless it is paid as part of a job protection plan.

Voluntary retirement benefits are exceptional income. They can therefore benefit from the “quotient system”, whatever their amount.

Please note, this is not automatic: the taxpayer who wishes to benefit from it must request it in their annual declaration of income. This system makes it possible to attenuate the progressiveness of the income tax scale and to avoid changing tax brackets.

Two tax calculations

First, income tax is calculated on the basis of the person's ordinary income (salaries, property income, etc.). Afterwards, the same calculation is made by adding a quarter of the voluntary departure compensation.

The difference between the two results is multiplied by four, to obtain the amount of tax linked to the exceptional income. The total amount of tax is obtained by adding the tax relating to ordinary income and the retirement bonus.

On Impots.gouv.fr, the tax administration gives an example for a married person, without children, with taxable income from 2023 salaries of 50,000 euros and severance pay of 16,000 euros. Without the quotient system, income tax amounts to 4,392 euros, and to 4,049 euros with the option.