Good news for French employees.
Those who have obtained salary increases from their employer to cope with inflation will not pay "more taxes", assured this Wednesday the Minister of Economy Bruno Le Maire.
“We are going to index the income tax scale to inflation to avoid these threshold effects, where people (…) switch to income tax or an additional bracket”, affirmed the number 2 of the government on BFM TV-RMC.
“It is out of the question that employees pay more income tax or fall into the income tax scale because of inflation,” he added.
The rise in prices exceeded 5% over one year in May, according to figures from INSEE.
A common measure
The indexation of the income tax scale to inflation, which will materialize in the 2023 finance bill that the government must present at the start of the school year, is a common operation.
Since 1969, the scale has been updated each year to take inflation into account, except in 2012 and 2013, specifies Bercy.
But the financial and fiscal stakes for the State are particularly important this year, due to inflation which has reached levels not seen since the 1980s in recent months.
The entry threshold for income tax is currently set at 10,225 euros per year for a single person.
The income tax schedule has four brackets, with tax rates ranging from 11% for the lowest incomes to 45% for the highest.
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