Now we know how much the income tax (IR) scale will increase. A particularly important fact this year, to the extent that inflation has returned to levels that we have not seen for forty years.
Bercy has planned, therefore, to revalue the scale by 5.3%, a level that should correspond more or less to the average inflation of 2022, which the INSEE will reveal next January. Remember that this figure does not correspond to the increase in consumer prices between December 31, 2021 and January 1, 2023, but to their average increase during the twelve months of 2022.
A tax cut for many taxpayers
Specifically, this revaluation means that the amounts of which a taxpayer “changes” the bracket will be revalued by 5.3%. And this for the four tax brackets (0%, 11%, 30% and 41%). The objective is to prevent a taxpayer from paying more money to the public treasury for their 2022 income even if they have not increased at the same rate as inflation.
Because this year, the price increase was clearly higher than the increases granted to employees. Only those earning the minimum wage benefited from an increase correlated with inflation. The revaluation of the tax scale decided by Bercy will therefore mean a reduction in taxes for a very large number of taxpayers.
750 euros plus salary but 98 euros less taxes
Take the case of a single person whose net taxable income reached €30,000 in 2021, a level roughly corresponding to the average salary in France. If this employee receives an increase of 2.5% -therefore less than inflation- he will declare an additional 750 euros. However, thanks to the revaluation of the scale, the total amount of your personal income tax will go from 2,922 to 2,824 euros, a decrease of 98 euros.
This revaluation of the scale, however, does not have the same effect depending on the level of income. Example with a couple of well-paid executives, whose tax base amounts to 100,000 euros and who only benefited from a 2% increase this year (this is the fate of many executives who do not benefit from the general increases decided during salary negotiations annual).
The revaluation of the income tax scale will increase the amount of the amount to be paid to the Treasury from 8,920 to 8,899 euros, that is, a tax gain of 21 euros, significantly lower than that which would have benefited the average salary taxpayer. A difference that is due to the progressivity of personal income tax.
Source: BFM TV
