20% income tax reduction for low- and middle-income households
The 2017 Finance Act created a reduction of income tax equal to 20% of the tax due for households whose reference taxable income is below €18,500 (single person) or €37,000 (couple), plus €3,700 per additional half-share. The rate tapers down to zero at €20,500 and €41,000. It applies from tax on 2016 income; the 2020 Finance Act abolished it and folded it into the décote (tax relief for low liabilities) from tax on 2020 income.
Measure originators
A positive amount is revenue or savings for public finances; a negative amount is a cost or lost revenue.
Measure impact
According to the National Assembly finance committee report, the measure was expected to benefit 7 million tax households with an average gain of €154. Instalments and monthly direct debits in 2017 were reduced in the same proportion for eligible households (if the annual reduction reached at least €75).
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
Possible referral to Constitutional Council
Décision de conformité / censure partielle
President of the Republic signature
Publication au Journal officiel
Council of Ministers
Validation interne