How to Calculate Your Own French Tax Income

Step-by-Step Guide

1. 1

   Step 1: Calculate the taxable net income Taxable net income is equal to the total net income

   Professional expenses are deducted either from salaries and wages or through the 10% reduction, so you find Taxable net income = Global net income X
   0.90 or by deducting the actual expenses:
   If your work-related expenses are more than 10% of your salary or wages, it is better to opt for the deduction of expenses (true expenses) which may be: the cost per kilometer, the cost of meals, highway tolls, supplies, training, etc.
   
   There are other deductible expenses:
   Alimony/Donations/People aged over 65, etc.
2. 2

   Step 2: less professional fees and other deductible expenses.

   This calculation is done in two steps.
   
   Tax shares based on your marital status:
   Tax share if you are:
   - Unmarried or single/Concubine/Divorced/Widower without dependent children.
   
   Tax shares if you are:
   -Married/sharener (PACS)/Widower with dependent children.
   
   Tax shares based on the number of children:
   0.5 shares per child for the first 2, then 1 share per child from the 3rd.
   
   For example, if you are married with two children: 2 shares (family situation) + 1 share (2 children:
   0.5 +
   0.5) = 3 tax shares This is in addition to the tax shares for the family situation.
   
   Increase in the number of tax shares:
   Some situations are eligible for a half additional share (0.5):
   Single parent/Disabled/Veteran/War widower/You live alone on 1 January and you have raised a child alone for at least 5 years.
   
   Be careful : half shares are not acumulable unless there are more than one disabled person in the home.
   
   For example, if you are both disabled and a war veteran, you only get one half additional share (not 1 share). , To find the family quotient, you must know your taxable income (see first step) and the number of tax shares you are entitled to (see second step).
   
   Family quotient = Taxable Net Income / Total tax shares , According to your family quotient, you can calculate your tax bracket.
   
   For example, if your family quotient is €10,000, then you will have an MTB of
   5.5%.
   
   All your income will be taxed at
   5.5%.
   
   For a €20,000 family quotient, one part will be taxed at
   5.5% and the other exceeding €11,991 at 14%. , We will use the quick method.
   
   This quick method of calculating gross tax requires knowing the current tax index. (Taxable net income * MTB)
   - (Index * tax shares) , The main corrections are the exemption limit and the family quotient.
   
   Cap on the family quotient.
   
   Limit on the number of tax-related shares.
   
   The more children you have, the less tax you pay.
   
   If you are raising your child alone, you get a half additional share for the first child (or 1 share instead of a half share).
   
   Apply the exemption The reduction in income tax applies only to low-income taxpayers, those who after calculating the gross tax and applying the cap on the family quotient, their tax is less than EUR X (X = amount fixed for the current year).
   
   For example, on a €800 tax, the calculation of the exemption is: (X/2)
   - (800/2) = 508-400 = 108 € tax exemption 800-108 = € 692 net tax ,
3. 3

   Step 3: Calculate the number of taxable shares (exemptions).

4. 4

   Step 4: Calculate the family quotient (multiplier) The family quotient is the proportion of taxable income divided by the number of tax shares in the family unit.

5. 5

   Step 5: Calculate the Marginal Tax Branch (MTB) (income tax bracket) Rates associated with Marginal Tax Brackets (MTB) are used to cut your family quotient into different installments to be imposed at different tax rates.

6. 6

   Step 6: Calculate gross tax There are two methods

7. 7

   Step 7: the normal method and the quick method.

8. 8

   Step 8: Calculate net tax The net tax is the gross tax corrected.

9. 9

   Step 9: Finished.

Detailed Guide

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