Tax relief for pensioners on hold: how to prepare for its possible abolition
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This significant benefit could represent up to €4,321 of deduction per household in 2025. IRINA MARWAN/GETTY IMAGES
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The government, which is seeking to restore public finances, is considering eliminating the automatic 10% tax reduction currently enjoyed by French retirees. If this measure is ultimately adopted, there are solutions to cushion the blow. In partnership with MeilleurTauxPlacement.
Are we heading towards the end of the tax deduction for retirees? The government is considering eliminating this automatic 10% reduction on taxable income that all French retirees currently benefit from. Introduced in 1978 to compensate for the lack of professional expenses among formerly employed workers, this substantial benefit could represent up to €4,321 in deductions per household in 2025. Its elimination, potentially planned as early as 2026, could bring in €4.5 billion for the State to restore public finances.
If the tax reduction is eliminated next year, non-taxable retirees (annual household income less than €19,500) will not be affected. However, wealthier households (incomes above €55,000) could see their taxes increase by up to €860 per year. The government is promoting what it considers a tax fairness measure, but unions are denouncing an attack on the purchasing power of the…
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