1.4% indexation of the income tax brackets (2021 income)
Article 2 of the 2022 Finance Act raises by 1.4% the bracket thresholds of the income tax schedule applicable to 2021 income (first taxable bracket from €10,225 instead of €10,084, then €26,070, €74,545 and €160,336), as well as related ceilings and thresholds (family quotient cap raised to €1,592 per half-share, tax reduction for low incomes) and the default withholding tax rate grid.
Measure originators
A positive amount is revenue or savings for public finances; a negative amount is a cost or lost revenue.
Measure impact
All households taxed under the schedule are concerned: without indexation, 1.4% inflation would have increased tax at constant real income. The Senate general rapporteur estimates the cost to the State at €1.5bn in 2022. The measure applies only to 2021 income and was replaced the following year by a new indexation.
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
Council of Ministers
Validation interne