Record income tax, but still very far from VAT, perfectly stable real estate wealth tax or increase in social security contributions on savings and gift and inheritance taxes… Here are 5 figures taken from 2023 tax revenues revealed mid -March by the General Directorate of Public Finances (DGFiP).
Income tax: new record 112 billion euros
From 2013 to 2018, gross income tax revenue was still around 75 billion euros overall. After a clear increase in revenue during the Covid-19 health crisis, the milestone of 100 billion was exceeded in 2022, 109.8 billion euroscompared to 99.8 billion euros in 2021. This year, the record is once again broken: 112 billion euros.
However, the state has neither increased taxes nor frozen the scale, this increase in revenue is therefore probably due to inflation and increases in the income of the French. In parallel, the amount of reimbursements and other reliefs paid by the DGFiP to households has increased very sharply since 2020, reaching 23.5 billion euros in 2023.
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IFI: 2.3 billion euros
The IFI, or real estate wealth tax, successor to the ISF refocused on real estate properties at the start of Emmanuel Macron’s first five-year term, logically saw its revenue plunge from 2017 to 2018, the time of the transition of the ISF the IFI. Of more than 5 billion euros gains for public finances in 2017the tax revenue from this tax weighing on the wealthiest has fallen 1.9 billion euros in 2018. Since then, the gains have increased slowly, reaching 2.4 billion euros in 2022. The gain for the state is unchanged in 2023, 2.4 billion euros.
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VAT: 173 billion euros, more than income tax
This is not a new thing but, every year, these statistics remind us: the income tax which attracts all eyes is not the main source of tax revenue for the Public Treasury. The value added tax reaches 172.8 billion euros in 2023, a very slight increase over one year but still far from the record for the year 2018, 212 billion euros.
Gift taxes: twice as much in 6 years!
Another consequent effect of the confinements of the Covid-19 health crisis? Since 2020-2021, the money collected by the state for free inter vivos transfers, or in common parlance, donations, has exploded. The milestone of 2 billion euros collected by the Public Treasury via donation duties was only exceeded in 2017. Then the milestone of 3 billion was exceeded, and by a large margin, in 2021, and the milestone of 4 billion euros in donation taxes was crossed in 2023.
Obviously, inflation plays a role, at this level it cannot be the only explanation for such an explosion in gift taxes. This probably means that the French give more money to their loved ones, especially as tax relief (read the link below) already make it possible to give a lot without paying tax, if it involves giving children or grandchildren.
Inheritance taxes, or gratuitous transfers by death, and therefore the taxes levied on inheritances, are increasing. But in a less exponential way. They increased from 13.5 billion euros in 2018 to 15 billion euros in 2022 and 16.6 billion euros in 2023.
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Your savings: +14% on your social security contributions
If the deductions made on the earnings from your savings increase, this is generally good news: social security contributions being levied at a fixed rate, 17.2%, any increase necessarily corresponds to an increase in the financial gains of the French… The increase is more than notable in 2023: +14% compared to 2022, with the 10 billion euros mark crossed for social deductions and social contributions on investment products. We have to go back to 2018, before the Covid-19 health crisis, to see such a collection rate.