17 million taxpayers are wondering how much they will pay in taxes in 2025. Among them, many are retirees.
The political instability that has shaken France for several months has raised many questions, particularly regarding taxes. Will increase, will not increase? The 17 million French taxpayers who pay income tax each year are entitled to ask themselves the question. Among them, many retirees may wonder if their retirement pension received every month will be impacted.
Indeed, the censorship of Michel Barnier’s government led to the rejection of the finance bill by Parliament. However, this text notably provided for the indexation of the income tax scale to inflation. This mechanism consists of revaluing the tax brackets according to the increase in prices recorded during the previous year, in this case the year 2024. Thus, in 2025, the income tax scale would have could be revalued by 2%.
According to sources close to the new government of François Bayrou, the revaluation of the income tax scale could be reintroduced in the new finance bill for 2025 currently being developed. However, if this government were also to be censored, the scale applied in 2025 could remain identical to that of 2024. A situation which would prevent certain taxpayers, in particular retirees, from benefiting from a tax cut. Le Journal du Net therefore carried out a calculation taking into account two possible scenarios: maintaining the 2024 scale or increasing it by 2% in 2025.
Let’s take the example of a retiree receiving a monthly pension of 1,662 euros, i.e. the average amount of retirement pensions paid in France in 2024. Our retiree will therefore have to, in 2025, declare an income of 19,944 euros to the tax authorities. . Once the standard deduction of 10% is applied, his net taxable income will be 17,949 euros. Therefore, our calculations reveal significant differences depending on the scenario chosen. Without an increase in the scale, this retiree will have to pay 732 euros in taxes. On the other hand, with the 2% revaluation initially planned, the amount of its tax will be reduced to 707 euros, a saving of around 25 euros over the year.
The situation is even more pronounced for a retired couple whose net taxable income amounts to 31,500 euros per year. With the current scale, their total tax will be 2,736 euros. If the revaluation is applied in 2025, their tax will fall to 2,602 euros, a saving of around 134 euros. Note that our calculations do not take into account potential credits or tax reductions that retirees can benefit from.
The savings made are explained by the 2% increase in the tax thresholds of the income tax scale. The first tax bracket, that at 11%, would start at 11,520 euros, compared to 11,294 euros in 2024. The limit of the next bracket (30%) would increase from 28,797 to 29,373 euros. Entry into the higher tax bracket (41%) would increase from 82,342 to 83,988 euros. And finally, the threshold for the last tranche (45%) would also rise from 177,106 to 180,648 euros.
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