The adoption of France’s 2025 budget will have multiple consequences for citizens. And one of them will be positive, because many taxpayers will see their tax drop this year.
After months of political battles, the finance bill (PLF) for 2025 of France was finally adopted in the National Assembly. The country is therefore finally endowed with a budget for the year with already many consequences. And if certain decisions have immediately aroused strong reactions-like the change of VAT regime for micro-entrepreneurs, immediately suspended-, a measure that will benefit all taxpayers.
Indeed, as every year, the vote of the national budget is an opportunity to revalue the entry thresholds into the different sections of the progressive scale of income tax. Adjusted on the level of inflation, more specifically on the evolution of the consumer price index excluding tobacco, this annual revaluation allows the tax scale to follow the price level of the rest of the economy. But with the blocking of the budget vote, she had so far not been able to be voted.
But it is now done with the adoption of the PLF 2025, and the amounts of all the tax sets will therefore be well revalued by 1.8 % for the calculation of the 2025 tax on the revenues of 2024. In the Detail, the new tax rates will be as follows: 0 % up to € 11,497; 11 % from € 11,498 to € 29,315; 30 % from € 29,316 to € 83,823; 41 % from € 83,824 to € 180,294; and 45 % beyond € 180,295. These new slices are those that will apply for the income declaration campaign that will start in the spring of 2025.
The good news is that for all people whose income did not increase between 2023 and 2024, the tax to be paid will therefore mechanically drop. For example, for a bachelor without children winning € 36,000 per year, income tax after reduction amounted to € 3,006 in 2024: he will drop to € 2,885 in 2025 with the new scale, for the same income . And for a couple with two children and € 60,000 in income, the tax will drop from € 2,212 in 2024 to € 2,145 in 2025.
In addition, even people whose revenues increased slightly between 2023 and 2024 will benefit from the revaluation of the progressive scale: if their backtracks increased by 1.8 % to the maximum, their tax will remain stable in 2025, while He would have increased without the revision. And for those who were just under the tax threshold, the revision of the scale may allow them to remain non-taxable in 2025. Good news for all citizens, whatever their situation.