Why 17 million taxpayers in France will get a pleasant surprise this month

Why 17 million taxpayers in France will get a pleasant surprise this month
The tax changes are for low and medium earners. Photo: AFP
A €5 billion tax slash to calm the 'yellow vest' protesters last year is coming into effect in January. Check if you are among those benefiting from the changes.

Seventeen million people working in France will get some good news when they open their payslip this month, thanks to an income tax reduction that has now come into force.

The €5 billion tax cut will mean an average additional €304 a year for the nearly nine million households who are affected, according to French media.

READ ALSO: How to understand your French payslip 

“I want to significantly reduce income taxes,” French President Emmanuel Macron said last April as he announced the income tax cuts as part of his response to the ‘yellow vest’ protesters’ demands for social policy changes that would benefit France's lowest earners. 

The vast majority – 12.2 million – of the people benefiting from the income tax reduction belong to the so-called première tranche, the lowest income group on the French income tax ladder, whose gross annual income is between €9,965 and €27,519.

They will see their annual income increase of between €350 and €380 in 2020.

Another 4.7 million people concerned belong to the deuxième tranche, (whose gross annual salary amounts to between €27,520 and €73,779). They will receive an additional €180 a year on average in income tax reductions.

Higher earners (above €73,779 gross annual salary) will not see any changes.

You can check if you are among the people benefiting from the tax reduction on the government's tax simulator, which you can find here.

But beware that the government has warned about potential delays, so if you think your January payslip is lacking changes that should have been made it may be that you are getting an even larger income tax reduction in February.

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