In France, individual taxpayers are subject to the income tax, which is calculated based on their income and personal situation. The income tax is progressively higher as income increases, meaning that people with higher incomes pay a larger portion of their income in taxes. This progression is achieved through the use of tax brackets.

There are several tax brackets for the income tax in France. Tax rates vary depending on income level and can change each year. The current tax brackets in France are as follows (these rates may be changed by the government, so it is important to check the rates in effect before declaring your taxes):

  • For annual income between 0 and 9,764 euros, the tax rate is 0%.
  • For annual income between 9,764 euros and 27,769 euros, the tax rate is 14%.
  • For annual income between 27,769 euros and 73,771 euros, the tax rate is 30%.
  • For annual income between 73,771 euros and 156,245 euros, the tax rate is 41%.
  • For annual income above 156,245 euros, the tax rate is 45%.

In addition, people with income above 250,000 euros per year are also subject to the exceptional contribution on high incomes, an additional tax introduced in 2011 to strengthen public finances and promote the reduction of national debt. The tax rate is 3% for income between 250,000 and 500,000 euros, and 4% for income above 500,000 euros. This tax is calculated on the portion of income above 250,000 euros, meaning that only the income exceeding this limit is subject to this additional tax.

It is important to note that these tax rates only apply to the income tax. Other taxes and duties may also be applicable depending on your income and personal situation. For example, the wealth tax (IFI).

The wealth tax (IFI) is a tax that applies to real estate assets over 1.3 million euros. The tax rate varies depending on the size of the taxable estate and can be between 0.5% and 1.5%. This tax is calculated on the entire estate, meaning that all real estate property you own is subject to the IFI.

In addition, the IFI is subject to a cap in France. This means that the total amount of taxes due on your estate cannot exceed a certain percentage of your income. The cap rate is currently set at 75%. This measure was introduced to prevent people with significant estates from paying exorbitant amounts of wealth tax.

It is recommended to consult a tax professional for personalized advice on your tax obligations. They can help you understand the different tax brackets and rates applicable to your situation, and assist you in completing your tax return accurately and efficiently.

This article was written by an AI and verified by EDMON.