The progressive tax scale will evolve in 2020 : are you winner or loser ?
The january 10, 2020
The finance law for 2020 will involve some changes in the tax scale :
→The tax rate of the first tax racket will decrease to 11 % instead of 14 %.
→The tax threshold of the 2 following rackets will decline : 2135€ for the 30 % one and 1148€ for the 41 % one.
→However, the 45 % tax racket won’t change.
The 2019 progressive tax scale :
|
Racket |
Tax rate |
|
Until 10 064 |
0% |
|
From 10 064€ to 27 794€ |
14% |
|
From 27 794€ to 74 517€ |
30% |
|
From 74 517€ to 157 806€ |
41% |
|
Above 157 806€ |
45% |
The 2020 progressive tax scale, from september :
|
Racket |
Tax rate |
|
Until 10 064€ |
0% |
|
From 10 064€ to 25 659€ |
11% |
|
From 25 659€ to 73 369€ |
30% |
|
From 73 369€ to 157 806€ |
41% |
|
Above 157 806€ |
45% |
Which impact on your income tax ? To know it, determine your marginal rate (you can read the french definition in our Patrimonial Lexicon).
If you are in the 11 % racket (your global income is under 25 659€), you are winner because you benefit from the decrease of the tax rate.
If you are in the 30 %, 41 % or 45 % tax racket, you are loser because the decrease of the tax threshold cancel. Then, your income tax should increase.
As most of our clients, you think you pay too much taxes ? You want to decrease your tax pressure ? Schedule a meeting and let’s determine together the best solution for you !