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How do you calculate your tax based on the income tax scale?

The progressive income tax scale is used to calculate tax. It consists of several brackets, each with its own tax rate. Find out how to calculate your tax.

What changes with the 2025 Finance Act?

The income tax scale has been increased by 1.8% for each step to neutralise the impact of inflation on household taxation.

How do you calculate your income tax?

Income tax is calculated on the basis of net taxable income in three main steps:

1. Divide your net taxable income by the number of family units with children,
2. Apply the progressive income tax scale applicable to the income in that year to this result,
3. multiply the result by the number of family supplement units to calculate the amount of tax due

Tax scale: the steps to calculate your income tax

The tax on your income in 2024, which you declare in 2025, is calculated in increments according to your income.

Example: For a single person with a net taxable income of 32.000 EUR in 2024, the family allowance is a proportion, so the operation is 32.000 EUR/ 1= 32.000 EUR.

To calculate his/her tax, this result must then be subjected to the scale that applies to income received in 2024:

– Income bracket up to 11.497 EUR taxed at 0% = 0 EUR
– Income bracket from 11.498 EUR to 29.315 EUR taxed at 11%: i.e. (29,315 – 11,497) x 11% = 1.959.98 EUR
– Income bracket from 29.316 EUR to 32.000 EUR taxed at 30%: i.e. (32,000 – 29,315) x 30% = 805.50 EUR.

This single person’s marginal tax rate is 30%, but not all of his income is taxed at 30%. The total result is 0 + 1.959,98 + 805,50 = 2.765,48 EUR.

To find out how much tax the single person has to pay on their income, multiply this amount by the number of family units the single person has: 2.765,48 EUR x 1 = 2.765,48 EUR.

Another example : A married couple with two minor children with a net taxable income of 55.950 EUR in 2024.
The couple has three shares (two shares for the couple and half a share for each child), so the taxable income of 55.950 EUR is divided in three = 18.650 EUR.

To calculate their tax, this amount is subject to the income tax scale:
– Income bracket up to 11.497 EUR taxed at 0% = 0 EUR
– Income bracket from 11.498 EUR to 18.650 EUR taxed at 11%: i.e. (18,650 – 11,497) x 11% = 786,83 EUR.

As this family has three family benefit shares, this result must be multiplied by the number three. The couple’s income tax is therefore 786,83 EUR x 3 = 2.360,49 EUR.

As their income tax is below the threshold of 3.248 EUR it is entitled to a discount (see section below), which is calculated as follows: 1.470 EUR – (2,360.49 x 45.25%) = 1.470 EUR – 1.068,12 EUR = 401.88 EUR or, rounded up, 402 EUR.

The tax amount after applying the discount is therefore: 2.360,49 – 402 = 1.958,49 EUR.

What are the adjustments to the net tax payable?

The amount you pay in income tax may be adjusted according to your situation:

– cap on the family tax allowance,
– tax breaks for modest incomes,
– tax reductions and deductions,
– contributions on high incomes.

Ceiling on the family allowance

The tax benefit of the family allowance (i.e. the number of tax units in your household) automatically increases with the level of declared income.
To reduce the impact of this tax benefit on high incomes, the family allowance is capped with a maximum benefit for each additional half share.

As a result, the tax reduction linked to the family allowance is limited to :
– 1.791 EUR for each additional half share,
– 896 EUR for each additional quarter share.

To find out if you are affected by the family allowance cap, the tax authorities make the following two calculations and compare them:
– tax calculated on the basis of two shares minus the cap on the family allowance,
– tax calculated based on the actual number of shares.

If the second calculation is lower than the first, you get a cap and have to pay the tax from the first calculation.

Tax relief for low-income earners

Decote is a system that reduces the tax payable by taxable households with modest incomes.

To benefit from this mechanism, your gross income must not exceed the following limits in 2025 (tax return for 2024):
– 1.964 EUR for a single, divorced or widowed person,
– 3.248 EUR for a married couple subject to joint taxation.

The discount applies automatically. The discount is obtained by deducting 45.25% of the gross tax amount from the fixed amount of 889 EUR for single taxpayers or 1.470 EUR for jointly taxed taxpayers.

Tax reductions and deductions

Tax reductions and deductions are deducted from your gross tax. Tax benefits, also known as tax niches, are generally limited to 10.000 EUR. This overall cap is the same for all taxable households.
Certain tax benefits are excluded, such as donations to organisations that serve the public interest or expenses for institutions for dependent persons.

The contribution for high incomes

The extraordinary contribution for high incomes is added to income tax. It applies to taxable households with a reference income above the following thresholds

– 250.000 EUR if you are single, widowed, separated or divorced,
– 500.000 EUR if you are married or in a registered partnership and subject to joint taxation.

The rate of this tax varies according to your household situation and your income according to a progressive scale:

Med venlig hilsen / Kind regards
Cabinet Nicolas BRAHIN
Advokatfirma i NICE, Lawyers in NIC
Camilla Nissen MICHELIS
Assistante – Traductrice
1, Rue Louis Gassin – 06300 NICE (FRANCE)
Tel : +33 493 830 876 / Fax : +33 493 181 437
Camilla.nissen.michelis@brahin-avocats.com
www.brahin-avocats.com