The finance law for 2024 was published in the Official Journal, as required by the regulatory calendar, before the New Year. Over the course of 49.3 and back and forth between the Assembly and the Senate, the 2024 budget was somewhat modified compared to its version initial. An update on the main changes for your money.
Income tax: rising bar and variable impacts
The income tax scale is indexed to inflation – as provided for in the law – which leads to an increase in thresholds of 4.8%. Therefore, if your income has stagnated in 2023 compared to 2022, you will pay less tax in 2024. If it increases, your taxes will not rise too quickly.
| 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: how much less will you pay in 2024 with an inflation index scale?
Fuel bonus, a season 2 twists and turns
Fuel allowance, season 2. In episode 1 of this new season, it was to target the lowest 50% of workers, specified the Minister of the Economy Bruno Le Maire when detailing the 2024 budget at the end of September. In episode 2 of this season 2, following the first debates in the National Assembly, the government agreed to incorporate an amendment from the LIOT and Horizons groups, which extends this bonus to the 60% most modest households.
But in episode 3, the certainty of an additional fuel allowance faded: the 2024 fuel check will only exist if prices at the pump soar. For how much? Around 2 euros per liter according to the minister: Approaching 2 euros, maybe 1.95 euros. This is when people tell us that they can no longer go to work. The last time, we implemented it when fuel reached 1.95 euros, which seems to me a reasonable threshold, explained Bruno Le Maire in mid-December. The finance law allows this lever to be activated: it is up to the government to decide whether it activates it or not by issuing the implementing decree.
Fuel bonus of 100 euros: you will only be able to receive it in the event of a price explosion
Real estate credit: the PTZ extended… but eliminated in new individual properties
The zero rate loan (PTZ) was also one of the series of the 2024 budget. In the end, the PTZ is indeed disappearing for households building an individual house. But Bercy announced a significant expansion of the range of households having access to this assisted loan, which will allow you to finance in certain cases up to half of your project without loan interest. Thus, new towns are classified as extended zones (to benefit from a PTZ when purchasing a new apartment) and the eligibility thresholds are widened for households.
PTZ: when will you be able to take advantage of the new zero-rate loan in 2024?
Airbnb rental: a hiccup and an ambitious overhaul sent back later
An ambitious overhaul of the waiting room and a quack to top it all off. The very ambitious overhaul of rental property taxation desired by MPs from all sides did not take place. The government, however, promises to tackle the problem of Airbnb, Abritel or other web platform rentals, which slows down access to long-term rentals, in 2025.
And in 2024? It is the solution outlined this summer which was retained: in summary 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.
But… a hiccup came to spice up this other series of the 2024 budget: the executive mistakenly maintained an article from the Snat reducing the reduction on the rental of tourist furniture to 30% (instead of 71%) in the zones who encounter difficulties accessing housing. A legislative twist which will have no impact: the article will be modified during a future legislative vector at the latest in the 2025 budget, a government source explained to AFP.
Real estate taxes: the government will simplify rental taxes in 2025
New tax advantage for the sale of building land
Do you have building land to sell, in 2024 or 2025? Good news: you can benefit from a 60% reduction on the capital gain, or even more under certain conditions. However, this tax reduction only concerns land located in extended zones (A bis) and intermediate zones (B1).
Real estate taxes: a new tax reduction for certain owners from 2024
Retirement savings plan: prohibited for under 18s
This was the surprise measure of the finance bill at the end of September, hidden behind the article creating the fiscal framework of the future climate savings plan (PEAC): the 2024 budget removes the possibility for minors to open a retirement savings plan (PER) in order to limit tax optimization behavior linked to the deductibility of voluntary payments from the income tax base.
Tax exemption: opening a PER for your children is (soon) over!
Donations to charities: ceiling maintained at 1000 euros for the 75% reduction
The ceiling for eligible donations was almost doubled during the health crisis, to reach 1000 euros, or potentially 750 euros in tax reduction. The new law raises the ceiling for eligible donations tax reduction of 75% 1000 euros until December 31, 2026. A new extension which resembles a new ceiling increasingly set in stone.
Tax reduction extended to donations to feminist associations
The 2024 budget extends to feminist associations a tax reduction of 66% for donations to charities. More precisely, the text extends this tax advantage to associations promoting equality between women and men. The government included it in the text adopted by the National Assembly.
Some unexpected boosts… and expected extensions
Electric car. To encourage individuals with an electric vehicle to install a charging station at home, the maximum amount of the tax credit increases to 500 euros in 2024, compared to 300 euros today. If this amount is not reached, it is equal to 75% of the invoice. An essential reinforcement given the observed cost of installing home terminal systems, estimated between 1000 and 2000 euros, according to the presentation of the amendment by Renaissance MP Mathieu Lefvre, who introduced this measure.
Auto insurance for electric cars. The total exemption from the special tax on insurance agreements (TSCA) is extended in 2024 by a partial exemption system of 75% which will apply for 24 months from the effective date of the insurance guarantees. insurance.
Extended electric bike bonus. Are you planning to buy an electric assistance bicycle, or VAE? Start by consulting the official website of the ecological bonus and the conversion bonus. Please also note that the 2024 budget involves a slight expansion of the system: the maximum amount of ecological aid for the purchase of an electric bicycle is stable (300 euros), but the reference tax income (RFR) retained has been raised by 14089 euros 22983 euros. And bicycles from reuse and repurposing are now eligible.
Advance renovation loan (PAR). For now, it’s a flop. However, this PAR allows – after having benefited from MaPrimeRnov’ or eco-PTZ – to pay only the interest at the start, the capital being repaid only at the time of the resale of the property or the inheritance. Problem: too complex, and not easily accessible enough. The 2024 budget facilitates access to the advance renovation loan by removing the resource conditions, considered very restrictive today, and by financing a counter-guarantee for these subsidized loans, in order to encourage banks to offer this advance renovation loan to their customers. borrowers.
Tax-free tips. As has been the case since 2022, tips will still be exempt from tax in 2024. As a reminder, this tax boost concerns tips in cash but also the amounts included in the bill for the service, it is – say those paid by bank card.
Madelin tax reduction, or IR-PME. The tax incentive system for investing in SMEs is once again increased to 25%, for 2 years, until 2025, compared to 18% in normal times. But be careful, like every year, this decision must be validated by the European Commission. In the meantime, the classic rate of 18% applies for investments made at the start of the year.
Sofica tax reduction. Unsurprisingly, this tax incentive to invest in support funds for the 7th art and the audiovisual industry is extended for 3 years.
Energy check, taxes, new bonus… These unexpected advantages for your budget in 2024
More distant changes
Collection at source. For couples, the individualized rate will be the default choice from September 1, 2025. To date, it is the household’s personalized rate which applies by default. Couples can claim an individualized rate (proportional to the income for each member of the couple) but you must complete the procedure on impots.gouv.fr.
Pinel device. It was announced, it is confirmed: the tax incentive system for rental investment in new or similar properties, says Pinel, will end on December 31, 2024. Investments made within this framework in 2024 will, however, allow you to benefit from tax reduction for several years.
Kilometer scale. One problem: the scale allowing income tax to be reduced by deducting mileage costs does not present any incentive to moderate kilometers or vehicle power. An objective: to determine new methods for calculating mileage compensation based on criteria that would depend on the vehicle’s greenhouse gas emissions in a way that favors, through higher reimbursement, the least polluting vehicles, to use the terms of the amendment. retained during the 1st of 49.3, the National Assembly. To what extent? An overhaul of the mileage scale, eventually, without further details.