Three ways your taxes will be eased in France this year

Income and property tax calculations have been adjusted and reliefs extended linked to year-on-year inflation, which means that many will see tax bills lightened.

The France tax year runs from January 1 to December 31, and the time to make income declarations of 2023 income is almost here.

While the window to qualify for tax deductions and credits on 2023 income has closed, here are three ways in which taxation this year may be eased.

Read more: Extra time now possible to pay French inheritance tax in instalments

1. 2024 tax bands on 2023 revenue

The tax bands for 2023 revenue have been increased by 4.8% in line with year-on-year inflation, which will see many pay less tax so long as their income did not rise more than this.

Financial media are predicting that online declarations this year will open on April 13, with declaration deadlines expected to run from May 25 for the first group of departments 01 (Ain) to 19 (Corrèze), up to June 8 for the last, departments 55 (Meuse) to 976 (Mayotte)

If you filled in a paper tax declaration in 2023, you will receive the main form in the course of next month, prefilled with income known already to the tax authorities.

If this is your first year paying French income taxes, you must first create a personal space on the tax website (impots.gouv) if you want to declare online.

You can also request a paper form (form 2042) by contacting the tax authorities on 0809 401 401 or by visiting your local tax office, or by downloading it using the search box at the website.

2. Tax relief for modest revenues

Automatic tax relief applied to people with modest incomes has been adjusted by 4.8% due to inflation.

The tax bands, including the first zero-rate band, help to keep tax bills down for the less-well off, but a system called the décôte helps to further lower tax payable for lower-income households.

In 2024, this applies to tax bills for 2023 income of:

• €1,929 for individuals
• €3,191 for couples

This extra reduction in tax is equal to the difference between 45.25% of your tax bill before the décôte and €873 (for individuals) or €1,444 (for couples who declare together).

For example:

An individual with an income tax bill of €1,200 is granted €330 in relief, bringing the total bill to €870 [€873 - (€1,200 x 45,25 %)].

A couple with an income tax bill of €3,000 is granted €86.5 in relief, bringing the total bill to €2913.5 [€1,444 - (€3,000 x 45.5)]

This relief is automatic, and applied before other reductions, such as for charitable giving.

3. Tax relief for over-65s and disabled people:

The tax relief for over-65s and disabled people, called the Abattement spécial accordé aux personnes âgées et aux invalides has also been adjusted for inflation and will apply to more people in 2024.

It now applies to revenues under:

• €17,200 for a €2,746 deduction on taxable income
• €27,670 for a €1,373 deduction on taxable income

Read more: Good news on tax for (some) over 65s in France

This relief is automatic, and applied before other reductions, such as charitable giving.

Property taxes will not rise as much this year

Property taxes have also been adjusted for inflation. While they will still rise for most people, the hike will generally be significantly less than in 2023.

Both of France’s property taxes, the taxe foncière and taxe d’habitation (for second homes) use the valeur locative cadastrale (VLC), a property’s theoretical annual rental value, as the basis for calculating the tax due.

Read more: French property taxes set to rise: when will you know the amount?

A property’s VLC is adjusted each year in relation to the consumer price index. In 2024, it will increase by 3.9%, whereas this was 7% in 2023.

The VLC is multiplied by a tax rate set by the local council to determine the taxe foncière and taxe d’habitation.

Note that some communes under ‘housing pressure’ are allowed to vote to apply a surcharge to the taxe d’habitation on second homes. You can check if this applies to the commune of your second home here.

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