After an increase this year of 5.4%, tax bands next year will increase by around 4.8%.
The increases over the past two years have been unprecedented, as the income bands have normally risen between 0% and 2% a year. By a sleight of hand these increases have generally been below the official rate of inflation.
A formal announcement of the increase will not occur until the winter, on passage of the finance bill for 2024.
However, in a press statement, Bruno Le Maire, the Minister of Economy and Finance stated recently that,
“It is out of the question that employees and French people pay more income tax with inflation”,
On that basis, the following table shows the provisional bands for 2024, compared to those for this year. The bands for 2024 will apply for income earned in 2023.
As can be seen no tax would be payable on net taxable income under €11,294 and thereafter taxed on a sliced basis, using the 'parts' system of household size.
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2023
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2024
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0%
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€10,777
There has yet to be an announcement about social charges, but pension income thresholds will also increase. There are no plans for changes to the rates.
In addition, capital income will continue be taxed on the basis of the flat tax of 30%, or by band rates by option.
<li><a href="https://www.french-property.com/guides/france/finance-taxation/taxation"><span style="font-weight: bold;">Guide to Taxes in France</span></a></li>
<li><a href="https://france-insider.com/archive"><span style="font-weight: bold">France Insider News</span></a></li>
