The government plans to index the income tax scale to inflation in its budget for 2024, a measure to avoid increasing taxes despite salary increases linked to price increases, according to the newspaper Les Echos on Saturday .
Questioned by AFP, the Minister of Economy and Finance did not wish to comment on this measure which should be included in the next finance bill for 2024. This will be presented on September 27 in Council of Ministers.
According to The echoesthe level of inflation still remains fixed but should be around 4.9%, while the National Institute of Statistics (Insee) forecasts an annual average inflation of 5% for the year 2023.
Counterintuitively, any increase in the bar limits the increase in taxes. On the other hand, a freeze in the bar would have increased them.
Which brackets of the scale apply to your income?
Barme revaluates 5.4% in 2023
The newspaper estimates this measure at between 5 and 6 billion euros of additional tax revenue which will not be collected, due to the reassessment of the tax bracket thresholds.
The government had already raised the bar by 5.4% in 2023, preventing the poorest French people from falling into the scope of income tax due to salary increases linked to inflation.
| Income bracket by tax share | Rate applicable for the tranche |
|---|---|
| Up to 10777 | 0% |
| From 10778 27478 | 11% |
| From 27479 78570 | 30% |
| From 78571 168994 | 41% |
| More than 168995 | 45% |
Bar scale revalued on the basis of annual inflation of 5.4%.
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2023-09-09 20:16:58
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