Calculating Your Taxes in France with and without an Online Calculator
It’s a no-brainer that calculating taxes is the least exciting way to spend free time for most of us. Yet, some things have to be done, and it’s a matter of “how” rather than “if.”
If you are here, you already know that everyday life has never been as simple as in the digital age. Daily activities that used to require time and effort — from making shopping lists to discovering names of plants to hanging out with friends — suddenly became doable with a few simple clicks on your mobile phone screen.
Calculating taxes is no exception. This article reveals how to calculate your tax in France using an online calculator, to make this experience more effortless than ever.
But first, let’s tackle the basics.
How to Calculate Taxes without an Online Calculator?
The following paragraph addresses how your income tax is calculated if you are a French tax resident.
But first of all, what does it mean to be a French tax resident? It simply means you are domiciled in France for tax purposes. However, if your income comes from a French source but you are domiciled abroad, you also should declare your income by filing a tax return in France. Mind that French tax residents that aren’t actually residents in France usually pay tax on their France-sourced income at a minimum French tax rate. It’s 20% for income up to €27,519 or 30% for any higher income.
For an average French tax resident, there is no reporting threshold. Meaning, that even if what you make is not taxable, you must report any income. That was bad news for those of us who earn minimum incomes. But on the other side of the spectrum, those who earn considerable money may also be disappointed by French regulations. The income tax of la République is progressive, i.e., the higher the income, the higher the rate. It’s calculated based on a scale updated annually consisting of five sections.
The list below shows tax brackets and a corresponding tax rate for 2022:
- up to €10,225 — 0%
- €10,226 – 26,070 — 11%
- €26,071 – 74,545 — 30%
- €74,546 – 160,366 — 41%
- €160,367 and above — 45%
Let’s now get hands-on experience with calculating tax. The tax concerns all types of income received by the members of the tax household, such as salary, property income, and others. Determining your tax liability starts with the French tax authorities determining your total income, also known as your total “gross income”. Then, a few adjustments are applied, and you obtain the amount of your net taxable income.
Your tax liability will depend on:
- how your household is structured (in France, they calculate the income tax at the level of the “tax household”);
- the level of your income, following the five different sections mentioned above.
What is a “tax household,” and does it concern you if you are currently single?
By definition, the household in France consists of individuals collectively joined. This kind of group constitutes a single taxpayer. Hence, if you are single, you do constitute a tax household; the only difference is that you do it alone and include only one person.
How to Calculate Taxes with an Online Calculator?
Now that we have learned the basic mechanisms of tax calculation, let’s see how to make it easier, given the possibilities that the age of digital discoveries brings. Income taxes in France may seem complicated to calculate by yourself, so let’s check out some innovative ways worth exploring.
A popular tool to handle tax calculations smoothly is an online calculator. Using this tool, you can estimate your income tax burden in France based on the latest fiscal data. However, be aware that the result of such calculation will be an estimation and not a precise amount you owe to French authorities — a difference may be slight or of greater importance.
Online tax calculators are quick and easy to use. After all, this is the main idea behind their appearing on the market. Here, you don’t have to apply large quantities of data. Remember that depending on your situation, there may be ways to deduct extra costs; these treats typically aren’t included in an average tax calculator.