French tax allowance for many over-65s is rising

A French tax allowance granted to many over-65s is being increased.

It means tax bills issued for 2024 income, which is declared this spring, will not be higher due to inflation as would have happened if the 2025 French budget had not allowed for this.

The allowance refers to an amount deducted from a person’s net taxable income before French tax bands are applied so as to calculate any tax due.

It is one of the mechanisms the French government uses to help limit income tax for certain groups, and it is written into the tax code. However rises to the thresholds are not obligatory and only follow if the tax bands rise.

The allowance amount and the income ceilings to benefit from it are both increasing by 1.8% in line with rises to the French tax bands.

The 1.8% rise was announced after the Bayrou government applied the actual inflation rate for 2024 published by Insee in early 2025 (last year’s original draft of the 2025 finance law, using estimates, had used 2%).

The allowance and ceilings would have been frozen if there had been no change in the income tax bands, as was envisaged in the emergency provisional budget law in place at the start of this year. 

The tax band increases mean that those who qualified last year but whose overall income did not rise with or above inflation, will pay less tax than last year. Some may even not have an income tax liability at all in which case refunds will be due if tax has been already deducted ‘at source’.

Read more: These are the new French income tax rates agreed for budget debate

The allowances apply to those who were 65 or over on December 31, 2024, and relate to income received in 2024, which is set to be declared in this spring’s obligatory income declaration. 

Read more: Month by month: What are key tax dates in France in 2025?

The system also benefits those who have a disabled person’s card with an 80% disability rating or higher, regardless of age, as well as people on a work accident pension. 

To benefit, under either the age or disability heading, overall net taxable income (revenu net global) should fall below certain ceilings. 

The 2025 limits are:

• If net income is below €17,510, then the allowance is €2,796 

• If net income is between €17,510 and €28,170, the allowance is €1,398

Those earning above this do not qualify.

The ceilings and allowance amounts are doubled for those in a marriage or Pacs that are subject to joint taxation and who both meet the conditions of being over 65 or disabled. 

However, note that there is no additional allowance amount for individuals who are both over 65 and disabled (ie. it only counts once, for the age or the disability).

What do I need to do to benefit? 

Taxpayers do not need to do anything to benefit from the allowance as it is calculated and applied by the authorities following the income tax declaration in spring. 

For those who are disabled, they must have a ‘mobilité inclusion’ card, and a disability marked at 80%. Alternatively, those with a military or work accident disability pension must have a disability rated at 40%. 

As a reminder, disability benefits are taxable and must be declared in each spring declaration. 

Read more: Five ways the latest 2025 budget will impact property owners in France