Millions of taxable French people will benefit from an exemption following the adoption of the 2025 finance law. In fact, the new tax thresholds have been revealed.
Statistics revealed by the DGFiP show that almost half of French people pay income tax and this proportion is falling each year. In view of the recent 2025 finance law providing for an increase in the IR scale, we can expect that the rate of taxpayers decreases further. The revaluation of the scale will take place on 1is January and compared to last year, the rate will be higher. This increase will lead to a mechanical increase in the income threshold which makes a taxable household.
Tax threshold: a rate that follows inflation
Forecasts for the 2025 finance bill
Currently, the 2025 finance bill is being debated in the National Assembly. He predicts an increase in tax thresholds of income tax from 1is January next year. The setting of the new rate follows the rhythm ofinflation and should be 2%. At first glance, it seems minimal, but for 50% of French people, it will be enough to fall below the threshold from which they must pay taxes. On the other hand, the other half will almost maintain their tax level within a few euros. You therefore understand the need to know the new thresholds.
What is your situation?
To determine whether you will be taxable in 2025, many parameters must be taken into account. First of all, you need to add up your annual resources received in 2024 and reduce all allowances, deductible expensesprofessional and land deficits. You can also estimate the tax credits or reductions to which you will be entitled. Next, evaluate your family situation to reduce the number of parts fiscales of your home. To do this, follow the following principle: an adult is equal to one share and a child is equal to half a share for up to two children. Adding a third child is a full share.
What are the new thresholds?
In 2025, the tax thresholds for a tax share will be €17,084 of annual taxable resources. For a couple without children, it could reach €32,258/year. A couple with one child will be taxable at €38,018, two tax shares €43,778 and three children €55,298. It is important to clarify that tax levels vary for single-parent families and amount to €22,844 for one dependent child and €28,604 for two. Furthermore, a single person with three dependent children will be exempt from paying tax 2025, if his income is less than €40,124/year, underlines How it works.
Tax threshold: a strong recovery of public finances
A worrying public deficit
The State wants at all costs to restore public finances and ideas are abounding, notably the possibility of reinstating an old tax that has been abolished for years. Indeed, the country's deficit is worrying and according to statistics, it should reach 6.1% of the gross domestic product this year increased to 7% in 2025.
A specific class targeted
In order to restore finances, the government intends to penalize the wealthiest households. The 2025 finance bill proposes to establish an average rate of 20% for households subject to a specific contribution on high incomes. The said text also plans to increase the tax on capital gains paid by Airbnb furnished owners, the increase in VAT on heaters running on gas and the reduction of benefits in kind for company vehicles.
A measure that almost failed
Initially, the government planned a freeze on progressive tax scale. The objective of this measure was to replenish the coffers by saving nearly 3.7 billion euros in 2025. This should encourage a tax increase for all tax households, regardless of tax rate, and bring more than 500,000 non-taxable households into the system. Impossible to close this section without talking about the big changes that await individuals next year. If you are in a relationship, check if you are affected.
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