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Retirees will pay more taxes in 2025 if their pension exceeds this threshold

Furthermore,

Retirees will pay more taxes:

A tax change is preparing and could cost millions of households dearly. Moreover, The abatement from which all French retirees are benefited today is in the viewfinder of the government.

Retirees are in the crosshairs. Nevertheless, The government plans to Delete an automatic tax advantage Of which 17 million taxpayers currently benefit. Consequently, A decision that could increase the income tax of many homes in 2025.

Today, all retirees benefit from a flat -rate reduction of 10 % on their taxable pensions. Similarly, “”The latter automatically applies to all declared pensions, whether retirement pensions, reversion, disability or food pensions.“The amount of this reduction is however capped at 4,399 euros per tax household.

Which will change for retirees in 2025 – Retirees will pay more taxes

Currently, this reduction allows many retirees to significantly alleviate their taxation. For example. a couple declaring 43,000 euros in pensions per retirees will pay more taxes year pays only 38,700 euros, which allows them to save several hundred euros. “The amount of its income tax will therefore stand at 2,387 euros instead of 3,032 euros, a saving of 645 euros.”

But this mechanism could disappear. The government plans to replace it with A unique flat -rate deduction of 2,000 euros per household. If this reform is voted. the same retired couple would see their taxable base drop to 41,000 euros, and their tax would climb to 2,732 euros, or 345 euros more than today. “The wealthiest retirees will logically be the most affected by this reform.”

A new threshold to know to avoid tax

Not all retirees will be impacted in the same way. Some will continue to escape tax thanks to their low income. Today, a single person is not taxable if their annual taxable income is less than 17,436 euros. With retirees will pay more taxes the new deduction of 2,000 euros, this threshold would climb to 19,500 euros.

“If the government puts into practice its idea of establishing a lump sum deduction of 2. 000 euros, then retirees will not pay tax if their taxable income is less than 19,500 euros, which corresponds to a monthly retirement pension of around 1,650 euros net.”

“Retirees may lose a considerable tax advantage.” For the most modest, this new rule could continue to play in their favor. For the others, the invoice may be salty.

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aspen.coleman
aspen.coleman
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