Since January 1, 2019, income tax is levied directly before the payment of salary
The calculation of the amount is done according to a rate that can be personalized, non-personalized or individualized
The personalized rate is calculated using data from the income declarations of the two previous years
The non-personalized rate is based on a scale that only takes income into account
The individualized rate is intended for couples subject to joint taxation, but with heterogeneous incomes
In the absence of action on the part of the taxpayer, the personalized rate applies
A non-taxable person is taxed at a zero rate
Rates are updated annually in September to adjust end-of-year payments
Entering into force on January 1, 2019, the withholding tax consists of deducting tax directly from the salary.
No need to pay your taxes all at once: the payment is spread over the twelve months of the year, and there is no longer a one-year lag.
The amount deducted depends on the withholding tax rate, and is updated in September of each year.
Withholding tax rate
With the deduction at source, a fraction of the salary is deducted and paid to the state as part of the income tax.
This amount is calculated using the withholding tax rate, itself calculated from the data of the tax return, such as income, expenses or tax credits.
There are different withholding tax rates depending on the case:
Custom rate
Non-personalized or neutral rate
The zero rate applies to people who are not taxable: this means that after declaring income, the person has no taxes to pay.
A person can be non-taxable in several cases.
This allows whoever earns the least money not to be taxed at too high a rate.
Zero rate
Custom rate
The personalized rate is the one that is set up by default.
It is calculated on the income for year n-2 declared in the spring of year n-1.
It is updated in September to adjust the remaining payments if necessary.
For example :
The rate in effect from September 1 to December 31, 2021 and from January 1 to August 31, 2022 are calculated from the 2020 income and expenses declared in 2021
Then an update of the personalized rate is done automatically in September: in September 2022 from the 2021 tax return
Updating makes it possible to lower or increase the amount to be withdrawn each month to adjust to the final amount of the previous year.
The Taxes website.
govt also offers a simulator to calculate its custom tax rate.
Non-personalized or neutral rate
For those who do not want a personalized rate, for example for reasons of confidentiality, it is possible to opt for a neutral or non-personalized rate.
To do this, you must inform the tax administration by going to your profile on the tax administration website in the section “Manage my withholding tax”.
The non-personalized rate then corresponds to a scale established by salary brackets.
It depends only on the salary, and does not take into account charges and tax credits.
This is also the rate that applies to new taxpayers, since they do not yet have an income statement to calculate a personalized rate.
Individualized rate
The individualized rate is aimed at couples who have heterogeneous incomes and are subject to joint taxation.
In this case, the rate is individualized: it takes into account the income of each member individually as well as half of the income from common property.
This allows whoever earns the least money not to be taxed at too high a rate.
Zero rate
The zero rate applies to people who are not taxable: this means that after declaring income, the person has no taxes to pay.
A person can be non-taxable in several cases:
His reference tax income for the two previous years was less than 25,000 euros per tax share
Their net taxable income corresponds to 0% tax rate in the non-personalized rate schedule
His burden of withholding tax is fully distributed over that of his spouse who earns more money
Change your withholding tax rate
Whatever the withholding tax rate chosen, the amount to be paid over the year will be the same.
By default, the personalized rate applies, except for new taxpayers who will have a non-personalized levy rate while waiting to have enough income declarations to be able to calculate a personalized rate.
Taxpayers can decide to change their withholding tax rate during the year by going to the “Manage my withholding at source” section on the tax administration website.
These changes can be made once a year and expire on December 31 of each year and must be renewed the following year.
The withholding tax rate will also be reviewed automatically once a year in September, so as to readjust the withholdings for the last months of the year based on data from the end of the previous year.
Following this update, the amount withdrawn may decrease, increase or remain stable, and even lead to a refund in some cases.
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