These are the innovations that await you in 2023
Goodbye housing tax and goodbye TV tax: the two big news for 2023 are permanent disappearances. As for local taxes, the property tax is increasing dramatically. Finally, in 2023, income tax will undergo many new features and developments.
Housing tax: complete abolition, except…
End. The final. In 2023, the housing tax no longer exists. At least for primary residences. Occupancy tax on secondary residences and other furnished premises not designated as primary residence (THRS) remains and no repeal or modification is envisaged. Therefore, the housing tax will continue for the owners 3.5 million second homes this is considered France.
Housing tax: these households will continue to pay 700 euros per year
TV license fee: gone
The government has decided to scrap the contribution to public broadcasting from 2022, which has been approved by Parliament, not without doubts and criticism. As a result, at the beginning of 2023, unlike last year, no taxable household will have to pay a monthly TV fee every month, and the famous 0RA box synonymous with the television in your home will disappear from the tax return. If settled in 2022, the fee would be €138.
In the short term, it is a part of the VAT resources that will compensate abolition of the fee to finance public broadcasting (TV France, Radio France, Arte, INA, RFI, etc.). Long term? The thoughts continue…
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Property tax: Expected to increase in 2023
Until now, the family of local taxes has been based on two pillars, housing tax and land tax, which are the main tax resources of local authorities. One disappears, one remains… and increases. And that’s without even mentioning the rates voted by the 36,000 French municipalities or the ratios between departments and municipalities.
The is the basis for calculating your property taxthe cadastral rental value (VLC), itself increases according to one of the inflation indices, HICP, measured annually by INSEE. But the indicator in question is such 7.1% November is the month used for the adjustment increase in this calculation. The result: property taxes will increase by at least 7.1% in 2023 unless your city or department decides to lower your rate.
Local taxes: property taxes will increase by at least 7.1% in 2023
Income tax: scale raised by the rate of inflation
The 2023 income tax schedule has been adjusted to keep pace with inflation. All the limits of the different brackets of the scale are increasing 5.4%. The annual inflation estimate used by the government in the autumn turned out to be very close to reality in the end, as INSEE predicted that prices would increase by 5.3% in 2022 compared to 2021.
Is this rise in the bar good or bad news? If your income is not increasing, this is good news: your income tax will be reduced slightly. For example, a couple with two children earning just over €2,500 net each would have a tax saving of around €180 if their income remained constant.
|Income division by tax share||Rate applicable for the tranche|
|10777 out of 27478||11%|
|27478 from 78570||30%|
|78570 out of 168994||41%|
|More than 168994||45%|
Barme has been revalued based on annual inflation of 5.4%.
Temporary scale subject to the passage of the Finance Bill for 2023.
Income tax: how much less will you pay in 2023 thanks to the new scale?
Tax notice: welcome to the marginal tax rate
New in 2023 on your tax notice: your marginal tax rate and your average income tax rate. This measure, which was requested by LR deputies as an amendment and included in the amendment budget of 2022, has an educational purpose: Our compatriots often confuse the average tax rate with the marginal rate, they explained to the deputies.
However, the average rate, which is very close to your withholding rate, is actually a percentage of your income sent to the tax authorities. But the marginal rate corresponds to the upper part of the scale (see below): a wealthy single person declaring an income of €100,000 thus has an IMR of 41% (the upper part applies part of his income) but his average is only It is 22.6%. These two degrees will now appear in all notices from 2023 onwardsAs confirmed by the General Directorate of State Finance (DGFiP) MoneyVox.
|Number of households||Average amount per household|
Source: Ministry of Economy, Finance and Reconstruction – DGFiP
2021 tax statistics on 2020 income
0%, 11%, 30%, 41%… How many French people pay the same rate as you?
Tax credit: up to €600 for parents
To date, child care expenses for children under 6 years that are considered for the tax credit have been limited to 2,300 euros. From 2023, this ceiling increases to 3,500 euros. Which is far from technical regulation! The maximum tax credit for childcare costs is €1,150 to €1,750 or €600. But, for example, parents who work as babysitters easily reach these ceilings. To date, 1.81 million households receive this tax credit, worth an average of €620.
This tax credit of €620 (on average) thousands of parents forget to claim
Home employment: new beneficiaries of immediate tax credit
Over the past few months, individuals who typically benefit from the home employment tax credit and individual clients of personal service companies have been able to halve their bill or paycheck. The tax credit that you used to get a one-year break until now is now immediate, at least if you agree to switch to the system. Jesu+ or if you fill out the online Urssaf form for service providers. After that, the association or service provider or Cesu services take care of the steps that allow you to immediately benefit from the 50% tax relief.
The novelties 2023? Beneficiaries of personalized autonomy allowance (USA) and disability allowance (PCH) will theoretically be able to benefit from the advance immediately. And DGFiP will automatically take into account the immediate monthly advances in its calculations: the traditional annual advance on tax credits in mid-January will therefore be reduced by preference, so you have already benefited in 2022.
Tax credit: Cesu or service provider, here is the instruction for immediate advance
Widows of veterans: half the tax share for all ages
This additional half share of tax is intended for widows above 74 years of age who are currently receiving a deceased husband’s combatant pension and widows from 65 years of age. In the 2023 budget, the age-at-death requirement for a combat card holder has been removed.
The half share tax covered all widows of veterans
Withholding tax: more flexible rate reduction
Is your income decreasing? Until now, in order for the tax authorities to agree to change your rate, the amount withheld had to be reduced by 10% to reduce the rate of tax charged. In 2023 5% discount on duty will be accepted to modulate your rate.
Why will you be able to reduce your withholding tax more easily in 2023?
RTT: no tax on refunded days off
Is your employer willing to take back your 2022 RTTs that you can’t (or don’t) ask for? They will be paid as overtime and you will not pay taxes in 2023 on this additional income you receive in 2022.
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Ground failure: raised threshold for energy filters
Do you have a job in your rental property? If the cost of the work done is higher than the rent you receive, you create a land deficit because your land income is negative. This land deficiency can be deducted from your gross income. In other words, this land deduction will allow you to reduce your income tax by reducing your taxable income.
You can normally charge up to €10,700 per year through this device. After voting on the budget amendment measure from January 2023 to December 2025, you Withdraw up to 21,400 euros if you do a great job on the energy filter. Thus, your energy repair costs should allow you to move an E, F or G rated dwelling into an A, B, C or D category.
Thermal Sieve: The land shortage for energy repair has doubled
Also: extended tax exemption, device removed…
Reduction of IR-KOM. The Malraux tax reduction applicable to SMEs or direct investments through FIPs or FCPIs is normally 18%, but will be increased again to 25% in 2023.
Pension savings ceiling. The maximum deduction limit for your contributions to the pension savings plan remains unchanged at €32,909.
bowl. For the construction and rental of new buildings, this tax base is gradually reduced: the Pinel tax deduction, which is 12% of the invested amount in 2023 (equivalent to 2% per year over 6 years), is reduced to 10.5%, then in 2024 to 9 will rise to %.
Jancy Bouvard. This rental investment tax credit, which has been in place for more than a decade, expired on December 31, 2022.
press tax credit. Got 30% back on your first press subscription? It was possible until the end of 2022, it will no longer be possible in 2023.
Tax on empty houses. It rises to 17% in the first year and 34% in the second year, against 12.5% and 25%, respectively, to date.
Development tax. The rate used to calculate the tax for the construction of a swimming pool will increase from €200 to €250 per m2.