Tax increase: here's what you risk paying more on your income from 2026
This is the most explosive, the most flammable avenue, the one that could lead to François Bayrou's downfall. The Prime Minister is considering a "blank year" in 2026. This could materialize in the form of a tax increase for 18 million French people. Why? Because with a blank year, the income tax scale would not be increased by the level of inflation. Thus, any French person who earned more in 2025 than in 2024 (even if it is not more than inflation) will pay much more tax than in 2025.
First example: From January to December 2024, a single person earned €2,000 net before tax, i.e., before withholding tax. In the spring, they declared €24,000 in income to the tax authorities. In total, they must pay €725 to the Treasury. In January 2025, their income increased by 2% and remained the same until December. In 2026, they will therefore declare €24,480 in income to the tax authorities. In this case, if the scale were not adjusted by 2%, they will pay €794. However, if the scale had been adjusted by 2%, the bill would have remained at €725. An additional €69.
Second example: A married couple received €1,800 and €2,300 per month in 2024. Thus, their spring 2025 tax return revealed they had €1,930 in taxes to pay. Since their salaries have also increased by 2% since January 2025, they will have to pay either €1,930 in 2026 if the scale is revised, or €2,073 if it remains fixed. A difference of €143. This difference will be similar if there is a child.
Finally, some French people who previously did not pay income tax due to their low income may now be required to do so in 2026. A person who earned €1,540 per month before taxes in 2024 does not have to pay taxes this year. Since January, their tax rate has been increased by 2% to €1,570. Without the revised scale, they will be forced to pay €32 in taxes in 2026 on their 2025 income.
François Bayrou has not commented on the matter and will deliver his proposal on July 15. However, the President of the National Assembly has expressed support for the idea, and Amélie de Montchalin, Minister of Public Accounts, has said that "everything is on the table." However, many voices are already being raised in opposition to the project. It's not certain that the majority of the National Assembly will vote for this blank year.
This is a new avenue unveiled by Le Parisien . Donating could be less tax-efficient for individuals, but also for businesses. Some donations allow you to deduct 75% of the amount donated from your taxes: these include those made to the Restos du Coeur, the Red Cross, or the fight against domestic violence. The deduction could decrease to 66%, as is the case for most donations. Furthermore, the maximum deduction limit could be lowered to €2,000, compared to 20% of taxable income currently.
This Monday, the Minister of the Economy, Eric Lombard, the Minister of Public Accounts, Amélie de Montchalin, and the Minister for Relations with Parliament, Patrick Mignola, are meeting with various parliamentarians "in preparation for the 2026 Budget." The following will be Hervé Marseille, president of the centrist group in the Senate, Boris Vallaud, president of the socialist group in the National Assembly, Eric Coquerel, LFI MP and president of the Finance Committee in the National Assembly, Stéphane Peu, president of the communist group in the National Assembly, Cécile Cukierman, his counterpart in the Senate, and Fabien Roussel, national secretary of the PCF.
Le Monde reports that the government is planning a new tax to be paid by the ultra-rich. Above a certain level of personal wealth—the threshold for which has not yet been set—a tax of 0.5% of the value of the assets would be payable by the taxpayers concerned. Furthermore, business assets would not be included in the calculation. This is a mechanism to combat "tax over-optimization," according to the government.
Will more than 4 million French people pay more taxes? The idea isn't out of the question. In fact, the government isn't ruling out reducing certain tax credits, which allow taxpayers to lower their final bill. Starting with the tax credit for home services. Currently, when you hire a nanny, a gardener, a caregiver, or someone else, 50% of the expense is deducted from your taxes. This could be lower in 2026. Socialist MP Christine Pirès-Beaune is proposing it, and Amélie de Montchalin, Minister of Public Accounts, has said that "these are proposals that must be considered very seriously." This raises the possibility of future tax cuts. The Court of Auditors has already suggested reducing the benefit to 40% of the expense, rather than 50%. No longer allowing the French to reduce their taxes by this amount therefore amounts to increasing their tax debt.
L'Internaute
