A tax reduction in elders will be greater this year.
This is an advantage from which many retirees benefit. Every year, when declaring their income, a large part of the elders sees the amount to pay to the taxman being reduced thanks to a special system: an automatic tax reduction linked to their income. Few really pay attention to it because it applies de facto according to the declared amounts.
However, in 2025, this reduction was increased and will once again allow a part of the taxpayers to make some savings on their tax note. This applies to retirees considered “modest” by the taxman. However, given the selected income levels, the majority of elders benefit from it.
When a retiree makes his income declaration, his pensions are, de factominored with 10%, for everyone. To this is therefore added a second allowance, “special” this time. This concerns retirees who are 65 years old, or more, as of December 31, 2024. To declared income will be deducted 1398 to 5592 euros, depending on the resources and the type of declaration (individual, PACS or marriage).
To benefit from this reduction, it is not necessary to exceed 28,170 euros in global net income. This amount does not correspond to that inscribed in box 1A of pensions, but to a calculation of the taxman. This concerns people who receive up to 2,737 euros of retirement per month, before direct debit.
This reduction is true relief for the retiree portfolio. Indeed, for those who receive 2,700 euros monthly retirement, this represents a saving of almost 300 euros in taxes. And also makes it possible to “amortize”, with the tax authorities, the revaluation of pensions.
Take an example. Jean-Luc is retired. He is 70 years old and lives alone. In 2023, he received, any regime combined, 1,700 euros of pension per month (taking into account the increase in Agirc-Arrco in November). In 2024, he therefore saw the penalty of revenue applied, on the purpose of his modest pension on his modest pension. In the end, he paid only 45 euros in the year.
That same year 2024, with the various increases, his pension was around 1790 euros per month. The increases in his pensions having been greater than the increase in the tax scale, he will therefore pay more to the taxman in 2025. Thanks to the mechanical revaluation of the specific allowance, he will pay 141 euros to the public treasury, against 145 euros if the reduction had not been increased.