the new 2023 bar increased to counter inflation

Neutralize the effects of inflation on the level of household taxation: here is Bercy’s promise when it comes to unveiling the income tax scale via the finance bill for 2023. In fact, this scale is revalued each year – with some exceptions – at the rate of inflation. The thresholds increase by 5.4%, which will allow you to pay less tax if your income has not increased in 2022.

Indexing the tax scale to inflation is commonplace. The government says it itself in the explanatory memorandum for the 2023 budget: the thresholds of the scale are revalued at the rate of the consumer price index (CPI) excluding tobacco, as every year during the recent period. But this year the revaluation is much more important than the 1.4% of last year or the indexations flirting with the zero of the previous years. With galloping inflation, Bercy retained a forecast of 5.4%.

So here is the new barwhich will apply to income for the year 2022, for tax paid in 2023. Provided that the bill is adopted as it is by Parliament.

Income tax: how much less will you pay in 2023 thanks to the new scale?

This choice shows the government’s determination to protect taxpayers from any increase in tax pressure in the inflationary context, underlines Bercy in the explanatory memorandum. It represents a cost of around 6.2 billion euros for public finances compared to a decision not to index. For the record, you have to go back to 2012 and 2013 to find evidence of a freeze in the scale, which indirectly has the consequence of increasing taxes.

The ceiling of the family quotient is also revised upwards: it will go from 1592 euros today for each additional half-share to 1678 euros for the 2023 tax.