Tax allowances

[Leschenauds]

Anyone out there know what the basic french tax allowances are, i.e. the amount an individual can earn before tax both pre and post retirement?

[LesLauriers]

In simple terms : Take your total household earned income, take away 10% then take away a further 20%.

Divide the result by the number of parts your household represents ie 1 person = 1 part, 2 persons = 2 Parts, 3 persons = 2.5 parts, 4 persons = 3parts, etc.

Apply the rates of tax to the result as follows

0 to 4262 @ 0%
4263 to 8382 @ 6.83%
8383 to 14753 @19.14%
14754 to 23888 @28.26%
23889 to 38868 @37.38%
38869 to 47392 @42.62%
47393 & above @ 48.09%

Then multiply the result by the number you divided your income by originally.

If you are on a pension the 10% deduction is limited to maximum of 3214 for 2003.

Remember of course that pre old age pension, when not covered by an E 106, 95% of income is subject to 10% social charges and all income over 6721 is subject to 8% health charges. Ex Government employee pensions are taxed in the UK but still declared in France. All unearned income is subject to 10% social charges, tax at your highest rate and health cover when applicable. E&oe.