Income taxes: who will pay them in 2024? what you need to know

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The launch of the 2024 tax return campaign is approaching. Around 40 million tax households soon (more precisely, in mid-April) they will have to declare their income from the year 2023 by 2024. And this, with some changes.

But who pays this tax created in 1914 in France and who goes to the state coffers, to finance public services (National Education, Defense, Justice, etc.)? We take stock.

Less than one in two households pays it

According to the latest available data, the income tax return affects 40.3 million tax households… But only 18.3 million taxes actually paid. Clearly, less than one in two households fulfills it.

As in 2020, 21.9 million households were not required to pay income tax in 2021. And among them, 3.3 million received a tax refund during 2022 due to the application of tax credits.

Finally, the taxes imposed on households are for an average amount of 4,561 eurosand those who received restitution received 824 euros on averageaccording to data from the General Directorate of Public Finances (Dgfip).

A new tax scale for 2024

In 2021 in France, four in 10 households had a monthly reference tax income, based on their number of tax payments, of less than 1,000 euros, while one in ten received more than 2,600 euros per month and per payment, according to the Dgfip.

And since 1Ahem January 2024 is a new tax scale that has come into effect and will be used in this next return to calculate your 2024 tax (which will refer to your 2023 income).

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Has been revalued by 4.8% in accordance with the finance law for 2024. A measure adopted by the executive to cover the inflation (4.9%) that France experienced in 2023.

Therefore, mechanically, some taxpayers will pay less taxes this year. Here’s who will have to pay taxes this year.according to the new scale:

  • The entry in the first tranche (11%) increases to 11,294 euros compared to 10,777 euros;
  • The limit of the next section, 30%, increases from 27,478 to 28,797 euros;
  • Similarly, the entry into the 41% tax bracket increases from 78,570 euros to 82,342 euros;
  • Finally, the threshold for the last tranche (45%) also increases from 168,994 to 177,106 euros.

In summary: if your 2023 income is less than or equal to 11,294 euros, you will not pay taxes.

Some examples depending on the situation.

The Minister of Economy thus gives some examples to know if personal income tax will have to be paid and remembers the rule. The amount of income tax is calculated from the net taxable income, in three main steps :

  • Divide the taxable net income by the number of shares in the family quotient.
  • The progressive scale of income tax applicable to the income of the year in question is then applied to this result.
  • Multiply the result obtained by the number of shares of the family quotient to obtain the amount of tax owed.

An example of calculation

Let’s take the example of a single person, without dependent children, who has received a net taxable income of 30,000 euros.

For a single person (corresponding to 1 tax quota) whose net taxable income is 30,000 euros, the family quotient is: 30,000/1 = €30,000. The following tax brackets are then applied to this family quotient: “Up to €11,294: not taxable.”

From €11,295 to €28,797: (€28,797 – €11,294) × 11% = €17,503 × 11% = €1,925.33
From €28,798 to €30,000: (€30,000 – €28,797) x 30% = 1,203 × 30% = €360.90
The amount of your tax is therefore: €0 + €1,925.33 + €360.90 = €2,286.23. We only have part of the taxes in this household, so 2,286.23 x 1 = €2,286.23.

Therefore, this single person will have to pay a total of 2,286.23 euros in taxes in 2024.

A simulator has been put online

Is it difficult to see clearly in this calculation? Do not panic:When the tax filing campaign begins in April 2024, you can already estimate how much you will pay, or not pay, this year.

With a very practical tool: an online simulator for taxpayers. This simulator is available in the website impots.gouv.fr and the searches remain anonymous.

You will simply have to opt for the “simplified model” of the simulator for taxpayers “who declare salaries, retirement pensions, property income, gains from the sale of securities (…) and deduct the most common charges” or choose the “complete model” , if you have specific professional activities and if you master the (many) tax loopholes.

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