The finance law for 2025 provides for a small update of the income tax (IR) scale with an increase of 2 %. This is a helping hand to adjust tax brackets according to galloping inflation. Why is it important? Well, more than 50 % French people already escape this tax, and this figure is only increasing. The goal is simple: soften the effects of inflation and allow even more people to be exempt or have a reduction.
What is happening in the National Assembly?
At the moment, there is firm discussion in the National Assembly on this bill to 2025who wants to implement this revaluation from the January 1, 2025. Even if it may not seem like much, this change could well shake up the tax situation in France. This could free thousands of French people from the burden of income tax, thus reducing the bill for quite a few households.
These debates occur in a climate where taxation is often on everyone’s lips. Legislators therefore seek to take measures that reflect not only economic realities but also the expectations of taxpayers.
Income tax: how does it work?
To understand these changes, you need to understand how income tax is calculated here. We start by adding up all the income received in 2024 to obtain the tax base. Then, we deduct a whole bunch of things like allowances, deductible charges and property and professional deficits.
You should also take a look at the possible tax reductions or credits to which you are entitled. Family situation has a say since it directly influences the number of tax shares in the household: an adult is worth one share while a child represents a half share up to two children and a full share from the third child onwards. .
What are the new thresholds for 2025?
Pour 2025the tax thresholds have been readjusted to better comply with the new rules. For a tax share (often a single person), we are talking about a threshold set at 17 084 euros of annual taxable income. For two tax shares, typically a couple without children, it rose to 32 258 euros per year.
- If you are a couple with one child (2.5 shares), your annual taxable income must not exceed 38 018 euros,
- while for two children (3 shares), it rises to 43 778 euros per year.
- With three children (4 shares), the threshold rises to 55 298 euros per year.
Single-parent families are not forgotten: if you are single with a dependent child, your threshold is set at 22 844 eurosand with two children to support, it goes to 28 604 euros.
These adjustments aim not only to make the tax system more equitable but also to support households in the face of current economic challenges.
The growing number of non-taxable taxpayers shows that we are moving towards ever more exemption thanks to this new law. Even if the tax issue may seem complex and often a source of concern for many, these measures pave the way towards something positive by ensuring that the tax sticks to the economic and social realities of the country.
So there you have it, this revaluation is not just technical; it clearly demonstrates a clear political will to help each French household in their contribution to the national budget while protecting their purchasing power in the face of global economic fluctuations.
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