Income tax: do you know how many people pay it?

According to data published in mid-April by the General Directorate of Public Finance, less than half of French people will pay income tax. In the 1970s and 1980s, they were more than 60%.

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– Less than half of the French pay income tax

While the share of households subject to income tax fell in 2023, with 76% of tax revenue coming from the richest 10%, a broader look at statutory deductions reveals a different picture. Less than half of the French or 44.7%, income tax paid in 2023according to data published in mid-April by the General Directorate of Public Finances and taken over Parisian Friday, May 3. Of the 40.7 million taxed households, only 18.2 million are taxed, a far cry from the 60 to 65% ratio between 1975 and 1985which is 0.8% less than in 2022.

In addition to income tax, CSG and VAT play a major role in tax revenue. Income tax arose in 2023 82.1 billion euroswhile CSG reported 141.6 billion and VAT more than 200 billion. Deductions are higher for people on modest incomes due to the weight of consumption. The income tax brings progressiveness to the tax system, which mainly affects wealthy taxpayers. in 2023 richest 10% contributed 76% of the revenue from this tax. The share of the richest has slightly increased this year.

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Also read: How much do we pay in taxes in 2024?

Debate on taxation of the first euro earned

The question of whether all French people are subject to tax from the first euro they receive is regularly debated. However, such a reform would face logistical problems and high costs for limited additional revenue. The Foundation for Research on Administration and Public Policy (Ifrap) proposes to include all incomes in the reference tax income for greater fairness. Ifrap emphasizes the importance of harmonizing income from work and income from solidarity for greater tax fairness.

As a reminder, in 2024 (ie for 2023 income) the limit for the net taxable income of one person is 17,133 euros and less. Or a tax of 11% (TMI 11%), but a real tax of 615 euros. The Tax Administration provides taxpayers with a free online simulator. It allows you to estimate the amount of tax that needs to be paid depending on your situation.

Also read: How to file the first tax return?

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