Impôts sur le revenu : découvrez si vous serez imposable en 2023 !

Income taxes: find out if you will be subject to taxes in 2023!

Every year, Bercy reveals the new income tax collection thresholds. With these, many French people can search, depending on their family situation, if they are part of the taxable households. Furthermore, there is a little change for the year which follows in 2023. In fact, like the scale progressive income tax, the figures are revalued by 5.4%. And this from January 1, 2023. Due to the meteoric inflation in French territory as well as the finance bill for 2023. So with this new scale and new tax thresholds, are you one of the French households subject to tax in 2023 ? We explain it all here!

Inflation in French territory

After a difficult year 2022 and prices that have seen unprecedented increases, the French are looking to return to the norm. Know then that, more than a year, inflation reached 5.6 %. And this, according to the latest provisional estimate from the National Institute of Statistics and Economic Studies (Insee, September 2022). A figure never seen before. This figure had an astronomical impact on the life of the French. Among food products, the price of energy, the cost of transport, etc. Thus, to prevent taxpayers from paying even more income tax in 2023Due to the rise in prices, Bercy made the decision to revalue income tax table. And this, by 5.4%.

This revaluation is therefore part of the finance bill for 2023. But in particular, it was approved, without a vote, in the National Assembly on October 19. And this, thanks to article 49, section 3 of the Constitution by the Borne government. Although this revaluation is good news for the French, it remains to be seen that it is expensive. In fact, for public finances, the cost of this revaluation seems estimated at 6,200 million euros.

The slices of the scale will experience a revaluation

In concrete terms, the different portions of the progressive scale income tax will be revalued at 5.4% on January 1, 2023. And this, whether it is the scale of 11%, 30%, 41% or 45%. Thus, to give a specific example, the entry into the 30% tranche will no longer be as in 2022 from 26,070 euros. But from 27,478 euros. Thus, taxpayers whose income has not changed this year. Or who have experienced an increase of less than 5.4% compared to 2021, they will realize savings. And this, at the personal income tax level next spring. And this, as our colleagues from Capital had explained during the presentation of the government finance billSeptember 26.

To give an example, a single person who received 30,000 euros of salary in 2021 paid 2,022 euros of personal income tax this year. And this, thanks to the revaluation of the scale. But also the fact that his salary did not increase in 2022. Thus, the amount of your personal income tax to be paid in the spring of 2023 will be reduced to 1,785 euros, that is, a saving of 237 euros. crucial help which will make a difference for many French households in these difficult times.

A revaluation for 2023?

While this is good news for taxpayers, there are still questions about different amounts on the scale. Or, from what amount of income does a tax household become taxable? It should be noted then that all answers depend on the applicant’s family situation. Thus, to help people with doubts, Bercy has decided to publish, each year, the tax thresholds in its practical brochure on the income statement. And as explained, the thresholds will also follow the 5.4% revaluation in January 2023.

Above all, it should be noted that there is a real difference between tax thresholds and collection thresholds. Note the definition of a tax household. Therefore, we call everyone who is listed on the same tax return a tax household. This household may then be taxable but not necessarily pay income tax. You are probably wondering why. Then you should know that below 61 euros of taxes to be paid, the tax authorities cannot take anything. Furthermore, for Bercy, up to this amount, the cost of collection appears to be much more important than the benefit.

Tax thresholds in 2023

For this reason, our colleagues at Capital have decided to present the recovery thresholds. The ones to be used from January 1, 2023. This implies the actual thresholds from which a household pays its income tax. Bercy uses the terms “ Net taxable income “. The General Directorate of Public Finances (DGFiP) underlines that ” The net taxable income is the income that is subject to the progressive income tax scale. “.

You should know that it is the net taxable income that is used in the calculation of the amount that households must pay in taxes. As a reminder, the net taxable income is obtained after applying 10% allowance for business expenses. Or even the deduction of actual costs. Also don’t forget that you have to deduct some charges from this. And this, like the payment of alimony, or even special allowances. As for the special benefits. There are some for the elderly, disabled or even for a dependent child who has founded a separate home.

Income tax deduction thresholds in 2023

It should also be noted that a single person will have to pay personal income tax from 16,388 euros of taxable net income. And this, as of 2023. Indeed, with such a tax base, a single person is taxed per bracket at 11% on 5,611 euros. And this, according to the application of the income tax scale. Thus, following this example, the amount of personal income tax is 617 euros. This figure is calculated by multiplying 5.611 by 0.11.

However, when the amount of IR is low, that is, less than 1,839 euros in 2023, Bercy applies a discount mechanism. And this, as Bercy explains, regardless of the number of household tax installments. It should be noted then that this discount is equivalent to the difference between 833 euros, the figure forecast for 2023, and 45.25% of the tax. Thus, this is equivalent, for a single person, to a final amount to pay of 554 euros. The amount is made by making the following calculation: 833 – 279 (617 x 45.25/100). To add a clarification, a declared salary of 18,208 euros corresponds to a net tax base of 16,388 euros. And this, taking into account that the taxpayer applies a 10% deduction. The professional expenses for example.

income tax calculation

To give another example, we can usea couple with two children. Which means three parts of the family quotient. Thus, the payment of income tax will begin next year. And this one, at 41,354 euros of tax base. As an indication, this means a declared income of 45,948 euros. So, in order to calculate the IR, you have to divide the household’s net taxable income by three. Which means therefore 13,785 euros. As you know, this figure is therefore subject to the progressive scale.

In addition, this same household will therefore be taxed at 11% on 3,008 euros (13,785 -10,777), or 331 euros. Therefore, to obtain the final amount of the income tax, the result must be multiplied by three. Which therefore represents 993 euros. Knowing that this amount is still low, then the household will also be able to benefit from the discount mechanism Bercy pointed out. A system will mark the difference between 1,378 euros, a figure forecast for 2023, and 449 euros (993 x 45.25%). In total, therefore, we can calculate 929 euros. To conclude, for this couple, the amount of income tax it will rise to 929 euros in 2023.


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