The French government has approved a new tax bracket for 2025, raising the bracket by 1.8%. This adjustment will prevent 380,000 households from paying higher taxes.
The new tax bracket takes inflation into account, meaning that individuals whose income increases at a rate equal to or less than the inflation rate between 2024 and 2025 will not face higher tax burdens. This measure is a consequence of the 2025 budget vote, which was approved by a joint parliamentary committee on February 5.
The annual indexation of tax brackets to inflation is a standard practice. However, the vote of no confidence that led to the resignation of the previous government, headed by Michel Barnier, stalled the process for 2024. Without the new tax bracket, the taxes of 380,000 households would have increased.