The number of shares from which you benefited in 2023 is, in principle, pre-filled on the income declaration for 2024. These tax shares take into account your marital status as well as the number of dependents or attached people in year N -1 , knowing that the number of children or those in alternate custody do not give the same number of tax shares in the household.
What is a tax share?
For the administration, “a tax share is a representative unit of the people making up a household“, explains the Public Service. This is an essential element, because it influences the amount of the family quotient. Indeed, fixed according to the personal and family situation of the taxpayer and the number of dependents, the family quotient is used to define the income which serves as a reference to establish the amount of income tax.
How to calculate your number of tax shares?
To calculate the number of tax shares, you must first define your tax household, according to the following rule:
- a single or divorced person represents a tax household
- a couple in a civil partnership or civil partnership represents a tax household*
- a cohabiting couple makes up two tax households (each person being considered alone by the administration since no legal link binds them)
* The website impots.gouv.fr precise : on an irrevocable option and only for the year of marriage or civil partnership, spouses or partners can opt for separate taxation of their income: they then file a declaration per person including the income they each had during the whole year.
The number of tax shares according to your household
- a single or divorced person who lives alone is a tax household comprising one person, i.e. one tax share
- a married or civil partnership couple represents a tax household comprising two people, i.e. two tax shares
- a cohabiting couple represents two separate households, each household has a tax share
Take into account dependent children
Each dependent minor child and each attached adult child provides you with additional half-shares: a half-share for the first and second, and one share for the third and subsequent ones.
Married or civil partnership couple
- a married or civil partnership + 1 dependent child = 2.5 tax shares
- a married or civil partnership couple + 2 dependent children = 3 tax shares
- a married or civil partnership couple + 3 dependent children = 4 tax shares
- a married or civil partnership + 4 dependent children = 5 tax shares
- from 5 children = 1 share per additional child
Please note that if you are a widow or widower, whether you live alone or not and you have dependent or attached children (or you have taken in a disabled person under your roof), you benefit from the same number of shares as ‘a married or civil partnership couple.
Single or divorced person
- a single or divorced person + 1 dependent child = 1.5 tax shares
- a single or divorced person + 2 dependent children = 2 tax shares
- a single or divorced person + 3 dependent children = 3 tax shares
- a single or divorced person + 4 dependent children = 4 tax shares
- from 5 children = 1 share per additional child
If you are a single parent, the first child counts for 1 share, the second for 0.5 share, the third and subsequent children for 1 share each. To be considered a single parent, on January 1 of the tax year, or where applicable on December 31 of the year (the year of divorce or separation), you must live alone with your dependent children. .
The number of tax shares in the event of joint custody of children
For a married couple, in a civil partnership or a widowed person who welcomes one or more children into the home in a shared custody situation, the number of tax shares in the household is as follows:
- a married couple, in a civil partnership or a widowed person + 1 child in alternating custody within the household: 2.25 tax shares in the household
- a married couple, in a civil partnership or a widowed person + 2 children in alternating custody within the household: 2.5 tax shares in the household
- a married couple, in a civil partnership or a widowed person + 3 children in alternating custody within the household: 3 tax shares in the household
- a married couple, in a civil partnership or a widowed person + 4 children in alternating custody within the household: 3.5 tax shares in the household
For a single, divorced or separated person who welcomes one or more children into the home in a shared custody situation, the number of tax shares is as follows:
- one person + 1 child in alternate residence within the household: 1.25 tax share in the household
- one person + 2 children in alternate residence within the household: 1.5 tax share in the household
- one person + 3 children in alternate residence within the household: 2 tax shares in the household
- one person + 4 children in alternate residence within the household: 2.5 tax shares in the household
Focus on exceptional situations
Certain dependents or personal situations entitle you to an additional tax share or half-share. For example :
- a person holding a disability card benefits from an additional half-tax share for the household, under certain conditions
- a person holding a war victim card, a military pension or a veteran has an additional half-share for the tax household, under certain conditions
- a person aged over 74 on December 31, 2016 can add an additional half-tax share for the household, under certain disability conditions
How is the family quotient calculated?
The family quotient is calculated by the tax administration based on two parameters: taxable income of year N-1 and the number of tax shares of your home. So, to calculate it, you must divide the amount of your taxable income by your number of family quotient shares. The calculation formula is therefore as follows:
Family quotient = Net taxable income / number of tax shares.
The result thus obtained is then submitted to progressive income tax scale and multiplied by the number of shares in your tax household to obtain the amount of income tax due.
Sources:
“Family quotient and income tax: how does it work?“- Public service