0.2% indexation of the income tax brackets (2020 income)
Article 2 of the 2021 Finance Act raises the income tax bracket thresholds applicable to 2020 income by 0.2%, in line with forecast inflation excluding tobacco. The thresholds move from €10,064 to €10,084, from €25,659 to €25,710, from €73,369 to €73,516 and from €157,806 to €158,122. Related ceilings (family quotient cap raised from €1,567 to €1,570 per half-share; tax discount: €779 and €1,289) and the default withholding tax rate grids are adjusted accordingly.
Measure originators
A positive amount is revenue or savings for public finances; a negative amount is a cost or lost revenue.
Measure impact
Applies to households liable to income tax in 2021 (2020 income). According to the Senate finance committee's general report, the cost of this indexation to the State is €230 million in 2021.
Official references
Sources
Procedure timeline
Follow the progress of this fiscal measure through the different stages of the parliamentary procedure.
Administrative implementation
Entrée en vigueur de la mesure et mise en œuvre par l'administration
President of the Republic signature
Publication au Journal officiel
Possible referral to Constitutional Council
Décision de conformité / censure partielle
National Assembly has the final say
Si échec CMP