The main exemptions, reductions and grants that apply are as follows:
10% Allowance on Pension Income
Despite some consideration being made by the government as to whether this tax break should remain in place, all pension income (including early retirement pensions) this year will benefit from a 10% allowance against income tax. The allowance is granted automatically, irrespective of the level or type of pension and it applies to the pension income of both spouses in a household.
You can read more at Tax Relief on Pension Income.
Fixed Sum Allowance
In addition to the 10% allowance, retirees over the age of 65 years are automatically granted a fixed sum allowance against their total income, subject to a test of resources. The maximum income to be eligible this year is €28,170. The allowance is doubled for couples aged 65+. The allowance is €1,398, provided the income is no greater than €28,170.
Social Charges
The social charge CSG (Contribution Sociale Généralisée) applies on pension income, but its amount varies according to income. Those on a low pension obtain complete exemption.
Moreover, those who are not affiliated to the French health system, either because they hold a S1 certificate of exemption from their home country, or they subscribe to a private health insurance policy, are exempt from social charges on pension income.
You can read more about these exemptions at Social Charges on Pension Income.
Taxe Foncière
The taxe foncière is the local rates paid by all property owners.
Retirees aged at least 75 years of age on a low income obtain an exemption from the tax, which is granted automatically by the tax office. However, the income test is tough; a single person would need to have an income less than €12,704, whilst for a couple it is €19,490.
You can read more at Taxe Foncière.
Home Adaptations
For seniors with a loss of autonomy who adapt their home, a 25% tax credit is available for work aimed at securing the home, such as the installation of ramps and handrails, or adapting bathrooms (floor-level showers, for example) etc.
The ceiling of the tax credit is €5,000 for a single person and up to €10,000 for a couple.
A test of resources applies, but it is relatively generous. Separately, there are also grants available.
You can read more at Home Adaptation Tax Credits & Grants.
Home Help Services
A tax credit of 50% is available for home help service, up to a maximum expenditure of €12,000 a year (€18,000 in some cases). The tax credit is under review, but the indications are that it will be retained for dependent persons.
You can read more at Home Help Tax Credit.
Residential Care
Residents in a nursing home can benefit from a 25% tax reduction on accommodation and dependency costs, with a ceiling of expenditure of €10,000 per year. This represents a maximum tax reduction of €2,500.
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