2021 Income Tax in France: Scale & Deadlines

The brackets of the progressive scale used to calculate french income tax for 2020 are revalued by 0.2% as of January 1, 2021. This revaluation is set according to the change in consumer prices excluding tobacco in 2020 compared to 2019. People who declare more than €10,084 in income for the year will have to pay income tax (instead of €10,064 last year). This is stated in article 4 of the finance law for 2021.

Scale and tax rates

The 2021 Income Tax scale sets the tax threshold and the applicable tax brackets for the 2020 income in France.

The 2021 Schedule of Income Tax in France is as follows:

Up to 10 084 €: 0%;
From 10.085 € to 25 710 € : 11.00%;
From 25 711 € to 73 516 € : 30.00%;
From 73 517 € to 158 122 € : 41.00%;
Over 158 123 € : 45%.

NON-RESIDENTS TAX SERVICES

Withdrawal at source (pay as you earn system)

Initially planned for 2018, the entry into force of the withholding tax on income tax was finally postponed to January 1, 2019. The way in which the tax payment will operate will therefore not change.

Simulator

The DGFiP has put online a simulator for calculating the 2021 tax. You will find it here: https://www.impots.gouv.fr/portail/simulateurs

How is income tax calculated?

The amount of tax is calculated from the net taxable income by:

• dividing the net taxable income by the number of shares ;
• then applying to this result the progressive scale of tax per bracket;
• multiplying the result obtained by the number of shares of the family quotient to obtain the amount of tax due.

For example, a married or PACS couple with two minor children has a net taxable income of €55,950.

This couple has 3 shares (2 shares for the couple and half a share for each child), the net taxable income of €55,950 is divided into 3 = €18,650.

The scale is then applied to the 18 650 €:

income bracket up to €10,084 taxed at 0% = 0
income bracket €10,085 to €25,710 taxed at 11%: €8,565 (obtained by performing the calculation 18,650 – 10,085) x 11% = €942.15

The total result obtained is equal to 0 + 942.15 = 942.15 €.

This family having 3 shares of family quotient, we multiply 942,15 € by 3 = 2 826,45 € rounded up to 2 826 €.

This family will therefore have to pay €2,826 in income tax.

The marginal tax rate for this family is 11% but not all their income is taxed at 11%. In fact, in the calculation of income tax, other elements can intervene such as the ceiling of the family quotient, the discount in case of low resources, the exceptional contribution on high incomes from 3% to 4%, tax reductions or credits, etc.

Deadlines :

The 2021 deadlines are as follows :

For paper declarations : 20 May 2021

In zone 1 (départements 01 to 19 and non-residents) – 26 May 2021 at midnight
In zone 2 (départements 20 to 54) – 01 June 2021 at midnight
In zone 3 (départements 55 to 976) – 08 June 2021 at midnight