France | Income tax will not increase on January 1 despite the absence of a budget

As a result of the censorship of Michel Barnier’s government on December 4, France has no budget for 2025. On January 1, there will be only a “special law” authorizing the government to raise taxes and spend credits on the basis of the budget. 2024, without possibility of new measurement.

However, the French will not pay more income tax on January 1, 2025 despite the absence of indexation to inflation of the income tax scale, but the situation could change if France remains without budget during the year.

The new Minister of the Economy wants to be reassuring

The Ministry of Public Accounts, however, wants to be reassuring, particularly for people receiving monthly payments. As of January 1, the ministry clarified that the French, who will not be deducted more, This increase could however manifest itself later, at the time of the income tax declaration in the spring, if no budget is adopted by then.

In an interview with the Tribune on Sunday, the new Minister of the Economy, Éric Lombard, wanted to be reassuring, affirming that “we will have a budget which will include an indexation of the scale”. “The French who do not pay income taxes today will not pay any tomorrow,” he also assured.

Prime Minister François Bayrou said on December 19 that he hoped for the adoption of a budget “in mid-February” without being “sure of getting there”. He had indicated that he would start from “the copy that was voted on” in Parliament before the censorship of his predecessor.

In its draft budget for 2025, the previous government planned to increase the brackets of the income tax scale by 2% in 2025 in order to “protect the purchasing power of the French” by avoiding an increase in related taxation. to inflation. The shortfall was estimated at 3.7 billion euros for the State.