The season to declare income is fast approaching in France.
Whilst the exact date that declarations will be open this year is not yet available, it usually begins in April and last for around six to nine weeks.
The 2025 tax declaration relates to income received in 2024.
There are three possible deadlines, with the one relating to your declaration depending on which department you live in (or if you are an overseas declarant).
The 2025 budget passed in February included several tax rises, notably on airline tickets for flights departing France, an increase in notaire fees for property purchases, and larger ‘maluses’ for those purchasing polluting vehicles.
Read more: French budget passed: how could it impact your finances
There is some good news though for those declaring income in 2025 and regarding other taxes.
We cover the main points below.
Tax threshold increased
Income tax thresholds have increased in line with 2024’s inflation.
This means a 1.8% increase compared to 2024’s levels.
Read more: These are the new French income tax rates agreed for budget debate
The new brackets are:
0% tax band
(2024: €0 - €11,294). 2025: €0 - €11,497
11% tax band
(2024: €11,295 - €28,797). 2025: €11,497 - €29,315
30% tax band
(2024: €28,798 - €82,341). 2025: €29,315 - €83,823
41% tax band
(2024: €82,342 - €177,106). 2025: €83,823 - €180,294
45% tax band
(2024: From €177,106). 2025: From €180,294
The increase is estimated to result in around 600,000 households avoiding entering a higher tax bracket or avoid paying income tax altogether.
However, this is slightly lower than the flat 2% increase ex-prime minister Michel Barnier wanted to include in his 2025 budget before he was ousted.
Donations to more charities now tax-exempt
Income tax reductions for donations to charities under the ‘Coluche’ scheme have been extended and now include associations that support victims of domestic violence.
It provides tax reductions of up to 75% of the donation.
It relates to donations made from January 1, 2024 to these associations, up to a maximum overall limit of €1,000.
You can read about this more in our coverage of recent changes for March 2025.
Read more: Tax, boilers, vehicles: 9 changes in March 2025 in France
Customer tips to remain tax-free
An exemption for tips to be declared for income-tax purposes has been extended to the end of 2025 (meaning they will also not need to be declared next year).
It applies to hotel/café/restaurant workers, as well as people who receive voluntary tips commonly in their role – hairdressers, taxis, casino workers etc.
To benefit, the person’s salary must be no more than 1.6 times the minimum wage in France (known as the Smic).
In 2025, the monthly Smic before any social deductions (brut) is €1,801.80.
You can read more about the rules here.
Other good news on tax
VAT rates on several home renovations will reduce or remain at 5.5% or 10%, instead of the standard 20%.
The 2025 budget widened this to include renewable energy heating networks (réseaux de chaleur à énergies renouvelables).
At the same time, however, VAT on gas boilers increased to 20%, and all other fossil fuel boilers are exempt from the reduced VAT (excluding maintenance and repair costs).
Donations for energy efficient home renovations are also exempt from taxes, if they meet certain criteria. This extends also to donations used to purchase a first home.
To qualify, the gift must be made to a close family member (child, grandchild, great-grandchild or to a nephew or niece if there are no other heirs) and must comply with the twofold limit of €100,000 per donor to the same recipient, and €300,000 overall per recipient.
Measures for farmers
Finally, the 2025 budget included several measures aiming to quell anger among farmers – a group that has been at the forefront of protests in the last 15 months in France.
There are tax reductions for certain savings and for relating to animal-based expenses, particularly for dairy cows.
Improvements to exemptions relating to property tax and transferral of farms to young farmers is also included.
Tax increases on diesel fuel used exclusively for agricultural or forestry work have also been definitively cancelled.
A core demand of protests in 2024, the tax increases were temporarily axed, but have now been permanently cancelled.
