From September 2025the withholding tax will undergo a notable modification aimed at correcting certain tax inequalities within married or civil partnership couples. This reform, introduced in the 2024 finance law, will mainly impact couples with unequal incomeand could reduce the tax burden for many taxpayers, particularly women whose income is often lower than that of their spouse.
Current levy: a tax surcharge for less fortunate spouses
Currently, married or civil partnership couples are subject to a single levy rate based on their joint income, regardless of their individual salaries. In a household with unbalanced income, this system disadvantages the spouse earning less, by applying a higher overall rate than that to which he or she would be subject if taxed separately. For example, a woman earning less than her partner is subject to heavier taxes than if she were single.
Individualization of the rate is already possible, but remains optional and often underused. Due to the automatic application of the overall household rate, many taxpayers do not consider this option.
A reform for a fairer and more individualized rate
From September 2025, this situation will change with the introduction of a default individualized withdrawal rate for each spouse on their personal income, while the common household rate will only apply to shared income, such as rental income or other common investments. This reform will allow spouses earning less to keep a larger share of their income, thus helping them to reduce their annual taxes.
Couples can, however, choose to stay at their single household rate if they wish, but this must be a joint decision, and no longer individual.
Limits for certain types of income
The calculation of this individualized rate will include the personal income of each spouse, as well as half of the joint income and household expenses. This nevertheless raises questions for certain households: when one of the spouses receives income from own property, such as rent from personal property, or specific charges, such as alimony paid to a relative, the calculated rate could not be not accurately reflect their real situation.
Indeed, in such situations, individualization will not always be ideal: the calculated rate could be lower or higher than that which would be applied if the incomes were entirely distinct. The system will seek to balance these differences, but will not eliminate them completely.
Towards better tax fairness for couples
With this reform, the government aims to better take into account the economic realities of couples and to limit tax injustices which persist in certain homes. While this measure will benefit taxpayers with lower incomes, it will, however, lead to an increase for certain others, notably better-paid spouses.
This development marks progress towards a tax system more adapted to the financial realities of French households. It remains to be seen whether it will bring expected improvements for all taxpayers concerned from September 2025.
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