Abolition of the 5.5% income tax bracket and overhaul of the tax reduction for low incomes (décote)

Article 2 of the 2015 Finance Act abolishes the first income tax bracket, taxed at 5.5%. The schedule applied to 2014 income becomes: 0% up to €9,690, 14% up to €26,764, 30% up to €71,754, 41% up to €151,956 and 45% above. The décote is redesigned: gross tax is reduced by the difference between €1,135 and its amount for a single person, and between €1,870 and its amount for a jointly taxed couple. The cap on the benefit per family quotient half-share is raised to €1,508 and other thresholds are indexed by 0.5%.