Taxes: if your income has changed this year, don't forget to adjust your rate

modified: 2023-02-21 23:34:23

Taxes: if your income has changed in 2023, you must adjust your tax rate. But how does it work ?

  Taxes: if your income has changed this year, don't forget to adjust your rate

Since January 2023, a new law reassesses the thresholds of the income tax scale . As you will have noticed, in recent months the French government and some major brands have been mobilizing against inflation. So, the state offers of new aids and softens some of them so that more citizens have access to them. This is the case with the subject of taxes. A question arises: should we therefore modulate our levy rate? We take stock with you and answer your questions.

Taxes: the finance law revises the income tax scale.

The finance law for 2023 revises the income tax scale. Indeed, th it relaxes the conditions required to obtain a reduction in the withholding tax rate . In fact, this revision is intended to compensate for the increase in the cost of daily living. Once again, the government is trying to find solutions to maintain the purchasing power of French citizens.

However, there are a few things to take into account to take advantage of this measure. Taxpayers whose income increased less quickly than inflation in 2022 will see their income tax fall in 2023. Indeed, the share of their income is higher. In addition, this measure also prevents non-taxable households from becoming taxable . And that taxable taxpayers move into the higher tax bracket, because they have benefited from a slight increase in income in 2022.

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Facilitation of the levy rate

To put it simply, if the withholding tax varies according to your income, the rate remains unchanged. And this, until your next statement . Nevertheless, the rate can be modulated throughout the year. How it works ? In fact, all you have to do is go to your particular space on the tax site.

In addition, you must determine the number of tax shares in your household beforehand. Then, you will have to indicate an estimate of the net taxable income and deductible expenses. In addition, you can very well use the online simulator. He will estimate the amount of your income tax.

For example, up to €10,777/year your tax rate to be applied to the bracket is 0%. Another example, if you are between €10,778/year and €27,478/year, your tax rate will be 11%.

Why do the legwork?

Indeed, it may be interesting to reduce your withholding tax rate. Moreover, it is particularly if your income has changed significantly . Or, if you have experienced a change in your family situation. For example, if you have given birth, if you are married, if your spouse is deceased; or if you are retiring.

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In short, the finance law for 2023 lowers the threshold required to obtain a reduction in the levy rate. In fact, if you want to modulate downwards, the difference must be greater than 5%, unlike 10% in 2021. And this, for income received from 1 is January 2023 between the estimated tax and the one that you should support in the absence of modification.

                                                                                                                                              Source : LADEPECHE

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