Just how is my tax calculated in France?
If you have looked at your tax statement and wondered how the tax is calculated, you may find the following rough guide to be useful.
If a couple has a total of €30,000 of income, their taxes would be as follows. €30,000 divided by 2 = €15,000
No tax for the first €10,084 but 11% on the difference between €10,084 and €15,000 (€4916 x 11% = €541). This amount is then multiplied by the number of people (or tax parts) so the total tax for this couple would be €1082.
For a couple with €60,000, the income is again divided between them (€60,000/2 = €30,000).
There is again no tax for the first €10,084, the next amount would be €25,710-€10,084=€15 626 at 11% which is €1719.
The difference between €30,000 and €25,710, i.e. €4290 would be taxed at 30% resulting in €1287.
The final tax would be (€1719 + €1287) x 2 = €6,012 total tax.
Once the tax is calculated then the tax reductions for home help expenses or charitable donations are deducted. For more information please request our free tax guide on our website.
If you have French investments or interest earning accounts and your taxable income (as shown on your 2020 tax return for your income earned in 2019) is less than €25,000 (or €50,000 for a couple) for interest, or for dividends €50,000 (or €75,000 for a couple) you must inform your bank or financial institution before 30th November 2020 so that they don’t withhold the 12.8% income tax on your income in 2021.
Wishing you all a wonderful November. Stay home, stay safe, stay in touch!