French Income Tax Bands in 2023: How Much Tax Will You Pay?
News
As tax season approaches in France, there’s some potentially good news for French taxpayers. In line with inflation, the government has increased the income tax thresholds by 5.4% in 2023. While the tax thresholds are adjusted annually, this is a substantial shift – almost four times higher than the increases made in 2022 – and an estimated 39.3 million households are set to benefit. Here’s what you need to know.
What is the French income tax scale for 2023?
The country’s progressive tax scale bands for 2023 are now as follows:
Per household unit (for more on this, see our guide Understanding French Tax- What is a Fiscal Household in France?)
- Up to €10,777: 0% tax rate
- From €10,778 to €27,478: 11% tax rate
- From €27,479 to €78,570: 30% tax rate
- From €78,571 to €168,994: 41% tax rate
- More than €168,994: 45% tax rate
How much tax will you pay in France in 2023?
It’s important to note that the tax rates themselves have not changed; however, the higher tax scale thresholds should mean that households will pay less income tax overall. La Direction Générale des Finances Publiques (DGFiP) estimates an average saving of €352 per household but, of course, this may vary considerably from household to household.
These tax savings will be applied to your 2023 French income tax return, which concerns tax levied on your 2022 income.
There will also be no changes to the social charges/social contributions rates in 2023.
Tax savings in 2023 compared to 2022
The following examples were taken from the French government website here and show the potential difference in income tax savings between 2022 and 2023 (remember that these are just examples and will vary depending on your fiscal household, tax credits and reductions, etc.).
2022 rates (levied on income from 2021)
For a single person (1 part) whose taxable net annual income is €30,000, the calculation of their tax was as follows:
– Up to €10,225 (band 1): €0
– From €10,226 to €26,070 (band 2): €1,742.95
– From €25,711 to €30,000 (band 3): €1,179
Total amount of tax: €2,921.95, or 9.74% of their taxable net income.
2023 rates (levied on income from 2022)
For a single person (1 part) whose taxable net annual income is €30,000, the calculation of their tax will be as follows:
– Up to €10,777 (band 1): €0
– From €10,778 to €27,478 (band 2): €1,837.11
– From €27,479 to €30,000 (band 3): €756.60
Total amount of tax: €2,593.71, or 8.64% of their net taxable income.
Paying Your Taxes in France
Whether you are moving to France, own French property, or have business interests, assets, or investments in France—FrenchEntrée is here to help with all your tax questions. Our Essential Reading articles are designed to give you an overview of the basics, from income tax and social charges to wealth tax and property taxes. However, tax laws and rates are always subject to change, and international tax liabilities can be especially complicated, so if in doubt, we always advise discussing your personal situation with one of our recommended financial or tax advisors.
Disclaimer: This guide is provided for general information purposes only and is not intended to be a substitute for professional advice regarding any aspect of your tax planning or tax liabilities in France. FrenchEntrée cannot be held responsible for the consequences of decisions or actions you may choose to take in connection with French tax declarations or tax liabilities.
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