Barthélémy Philippe, edited by Yanis Darras 7:16 a.m., September 26, 2022

To cope with wage increases in 2022, the government is proposing, when presenting the 2023 budget, to index income tax to inflation.

The minimum scale for paying income tax is increased by around 500 euros, thus preventing many households from becoming taxable next year. 

Debt is talking about her again.

As the presentation of the 2023 budget approaches, the control of the French debt is at the heart of the debates.

But the government plans to maintain high public spending to support the French in the face of rising energy prices and more broadly, daily life.

Among the ideas presented this Monday on the occasion of the presentation of the bill in the Council of Ministers: the indexation of income tax on inflation.

>> Find Europe Matin in replay and podcast here

5% increase in entry thresholds

With this measure which will cost a little more than 6 billion euros to the public accounts, the government seeks to prevent the French from paying more taxes because of inflation.

In 2022, the rise in prices has led to a general upward trend in wages.

With the maintenance of the current scale, many households concerned could have switched to tax, or even moved to the upper bracket in 2023. For example, a single person with minimum wage would have become taxable at around €130.

To avoid these unpleasant surprises, the government has decided to increase by just over 5% the entry thresholds for the five brackets of the tax scale, which corresponds to the average level of inflation over the year. 2022.

Lower taxes too

The minimum annual income taken into account to be part of the 45% of taxable French households will be raised by just over €500.

If your salary has not increased in 2022, you will also be winners since you will automatically pay less tax next year.

According to Gabriel Attal, a single person who receives €2,500 per month will see his contribution reduced by just over €300. 

It should also be noted that the bill will also introduce the abolition of housing tax for the 20% of French people who still paid it, starting next year.