Tax return deadlines have been revealed. Like every year, the income tax rate is increased. Here are the new thresholds to remember.
The income tax timetable is being clarified for the year 2024. The deadlines were confirmed last week by Bercy.
Since January 1, a new tax scale has come into force and it will be used in the next declaration to calculate your 2024 tax which will relate to your income for the year 2023. This scale is that of the tax payable in 2024, on the income of the previous year.
| 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.
For those most familiar with the tax scale, the reduction which moderates the tax for low-taxed households goes from 1378 euros to 1444 euros for a couple and from 833 to 873 euros for a single person.
Taxes: these 3 new features awaiting you in 2024
The new family quotient
The tax reduction linked to the family quotient was in 2023 limited to 1,678 euros for each additional half-share. This threshold will also be revalued, 1759 euros.
Same revaluation for the share granted to a single parent who raises one or more children alone, for the first dependent child: 4149 euros, compared to 3959 euros in 2023.
Taxes, PTZ, fuel premium, PER, electricity… What will change for your budget in 2024
How to read this bar?
The income tax rate is progressive. This means that no one is taxed 45% on all of their income: each bracket of income is taxed at the corresponding rate.
Thus a single person (i.e. 1 tax share) with a net taxable income of 50,000 euros is subject to a rate of 0% on 11,294 euros, 11% on the income bracket of 11,295 28,797 euros, and 30% on the amount above 28,797 euros.
What brackets apply to your income?
Why is the income tax rate increasing?
It’s counterintuitive: the scale increases but above all this prevents you from paying more taxes… The thresholds for the income tax scale increase at the rate of inflation, +4.8% for the bar this year. Last year, this revaluation of the scale was 5.4%.
More concretely, 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.
How much less tax thanks to the revaluation?
MoneyVox carried out simulations for five different profiles when the scale was revealed. Here is the impact for income that has not increased by a cent between 2022 and 2023…
| Tax household | Reported annual income | Tax 2023 | Tax 2024 | They save… |
|---|---|---|---|---|
| Manonsingle, no children 1383 per month | 16596 | |||
| Sabrinasingle, no children 2000 per month | 24000 | 897 | 774 * | – 123 |
| Johnsingle, no children 2963 per month | 35556 | 3194 | 2886 | – 308 |
| Amina and Gabrieltwo children about 2700 per month, each | 65000 | 2804 | 2490 * | – 314 |
| Elizabeth and Jacqueswithout dependent children about 4200 per month, each | 100000 | 14187 | 13572 | – 615 |
Source: official simulator on impots.gouv.fr for 2023 + MoneyVox simulations for the probable 2024 scale, with 4.8% revaluation.
* Estimate of the discount taking into account the revaluation of the applicable thresholds.
And the impact if their income increased by 4.8%, like the bar…
| Tax household | Reported annual income | Tax 2024 on 2023 income |
|---|---|---|
| Manonsingle, no children 1449 per month | 17393 | |
| Sabrinasingle, no children 2096 per month | 25152 | 940 * |
| Johnsingle, no children 3105 per month | 37263 | 3347 |
| Amina and Gabrieltwo children approximately 2840 per month, each | 68120 | 2938 * |
| Elizabeth and Jacqueswithout dependent children approximately 4370 per month, each | 104800 | 14868 |
Source: MoneyVox simulations for the probable 2024 bar, with 4.8% revaluation.
* With discount. Calculation taking into account the revaluation of thresholds and fixed discount amounts.
More details on the impact of the new tax scale? Read the following article.
Taxes: how much less will you pay in 2024 with an inflation index scale?
Is this the same scale for withholding at source?
For withholding tax, levied each month, the schedule is slightly different. The General Directorate of Public Finances (DGFiP) updates your rate each year in September following your spring declaration. In September 2023, your rate was thus updated on the basis of your 2022 income. This latest update was made on the basis of the scale currently in force, in other words the scale of the 2023 tax on 2022 income.
The bar above will serve as update your withholding tax rate in September 2024and therefore calculate your balance to be paid at the end of summer 2024.
Taxes: what is the minimum salary to be taxable?