Tax rate cut for millions in France
An income tax reduction benefiting around 17 million households starts on January 1.
A childless couple earning €4,600/month will pay €886 less in total in 2020, while a single person declaring €2,100 will pay €527 less, the Finance Ministry says. Average savings will be about €300/year. Homes which do not pay tax are unaffected.
The savings result from the first tax band rate dropping from 14% to 11%; however the thresholds for higher bands are being adjusted so that those who fall into the third taxable band at 41% (income of €72,644-plus a year per family quotient part) do not benefit.
You can check your entitlement at tinyurl.com/y3sptrsp.
You will need your revenu imposable (annual assessable income) and number of parts, which are on your last avis d’imposition tax statement.
Also new in 2020 is that those who did not have to make any changes to their tax declaration in 2019 will not need to make a declaration if they have the same, known, incomes, such as salaries or French pensions.
The 2020 Finance Law also includes a new right to a daily payment for people who make use of the congé de proche aidant to stop work to look after a relative who is ill.
