The property tax will increase in 2024, but less than in 2023. The income tax rate is increasing significantly to avoid the perverse effects of inflation and salary increases. The Macron bonus sees its exemption disappear. Here are 3 new tax features for 2024… which should not overshadow extensions and other adjustments to the margin.
The years follow each other and are not alike in the tax department. Without being a very big vintage of tax reform, compared for example to 2013, 2018 or 2019, the year 2023 brought several major upheavals, starting with the removal of the TV license fee. The past year was also that of the transformation of the housing tax into a local tax focused on second homes. Without forgetting a series of tax boosts, such as the increase in the childcare tax credit.
And in 2024? No major tax reform in sight. But notable developments start with the impacts of inflation on tax scales and bases.
1 – Land tax: +3.9% minimum (except municipal exception)
Are you the owner? Your property tax has very likely increased by more than 7% in 2023, as in nearly 9 out of 10 municipalities. Because the tax bases increased by 7.1% last year, the cadastral rental values being revalued each year following an inflation indicator, the harmonized consumer price index (HICP).
We already know the next revaluation of the bases for calculating property taxes: +3.9%, like the HICP of November 2023. Please note: this does not mean that all property taxes increase uniformly. If your city or intermunicipality does not change its tax rate, then your property tax will increase by almost 4%. There would need to be a clear reduction (roughly equivalent to 4%) in the local rate for your property tax to remain stable.
2 – Income tax: the scale follows inflation (to avoid too high an increase)
The income tax rate also follows inflation. Last September, Bercy expected 4.8%, which is quite close to reality since INSEE ultimately estimates annual inflation at 4.9%.
Income tax: here is the new bar for 2024
Consequently, the thresholds of the income tax scale all increase, uniformly, by 4.8%, compared to 5.4% last year. Good or bad news for your tax? Good! This allows you to avoid a significant increase.
Illustration: as the threshold for the first tranche increases from 10,777 to 11,294 euros, the portion of your income taxed at 0% is greater. Mechanically, with the increase in thresholds, your tax falls if your salaries, pensions or other resources do not increase.
| Income bracket by tax share | Rate applicable for the tranche |
|---|---|
| Up to 11294 | 0% |
| From 11295 28797 | 11% |
| From 28798 82341 | 30% |
| From 82342 177106 | 41% |
| More than 177106 | 45% |
Barme included in the finance law for 2024.
Taxes, RSA, retirement, salary… These increases that await you in 2024 with inflation almost 5%
3 – Macron bonus: no more tax exemption
If your employer wanted to benefit from the value sharing bonus (PPV) version without taxes or charges, you had to grant you a Macron bonus at the end of the year 2023. Until now the Macron bonus was an exceptional bonus, a legacy of health crises and yellow vests.
After the milestone of January 1, 2024, the PPV definitively moves into take-up mode. It is integrated alongside profit-sharing or participation among the levers for sharing profits within the company. You can now choose to allocate your Macron bonus to an employee savings plan.
What is the point of placing your bonus on a PEE? As with an incentive bonus, this will allow you to avoid income tax. Because the full tax exemption is ending. Please note, however: she will remain totally tax free until 2026 for employees of small businesses (less than 50 employees) if their remuneration is less than 3 SMIC.
A sustainable Macron bonus, a new bonus… New features of the value sharing law
And also… Extensions and adaptations
Housing tax on second homes. The increase may go up to 60% of the THRS in municipalities which have decided so before the end of October 2023.
Tax niches. The 2024 budget did not include any major tax reform, apart from the confirmation of the program extinction of the Pinel system, but the finance law extends several existing systems: IR-SME tax reduction 25%device Malrauxthe reduction Sofia, notably. As well as the extension until 2026 of the 1000 euro ceiling for Coluche donations entitling you to a 75% reduction. Just like the tips tax exempt, for the year 2024.
Airbnb Rental. The big overhaul of rental property taxation will wait. The short-term solution in 2024? In short, a alignment of the reduction rate applied to classified tourist furniture (71%) with that of classic furniture rental (50%) and a reduction in the income ceiling to benefit from it. The 71% reduction will still remain for the rental of premises classified as furnished tourist accommodation located in geographical areas not characterized by a significant imbalance between supply and demand for housing. Clearly in a rural area.