Individuals: Changes Effective January 1, 2025
On December 30, 2024, the French government announced significant changes affecting individuals, which will take effect on January 1, 2025. The Ministry of Economy and Finance has published a comprehensive list of these changes, which encompass various aspects of personal finance and taxation.
Taxation
- Personal Income Tax (PIT): The income tax brackets for 2025 will be adjusted to account for inflation. The thresholds for each bracket will increase by 1.4%, leading to a reduction in income tax for most taxpayers.
- Capital Gains Tax (CGT): The exemption threshold for CGT on the sale of real estate will be increased to €25,000 per person per year.
- Wealth Tax (IFI): The threshold for IFI will be raised to €10 million per couple, providing relief for individuals with modest wealth.
Social Security Contributions
- Employee Contributions: Employee social security contributions will be reduced from 22.6% to 21.6% of gross salary, resulting in a net increase in take-home pay.
- Employer Contributions: Employer social security contributions will be increased by 0.5% for salaries above €20,000 per month, funding additional healthcare and pension benefits.
Other Changes
- Minimum Wage: The minimum wage (SMIC) will increase by 1.5% to €11.38 per hour, providing a boost to low-income earners.
- Energy Allowances: Enhanced energy allowances will be introduced to assist households struggling with rising energy costs.
- Housing: The “Visale” scheme for rental guarantees will be extended to cover more households, making it easier for renters to secure accommodation.
- Healthcare: The “Mon Espace Santé” digital health platform will be fully operational, providing individuals with centralized access to their medical records and healthcare information.
Additional Information
The government has emphasized that these changes aim to support individuals and families, particularly those facing financial challenges. The increased income tax thresholds and reduced employee social security contributions will provide direct financial relief, while the energy allowances and housing measures will address specific areas of concern.
The Ministry of Economy and Finance advises individuals to consult with a tax or financial advisor to fully understand the implications of these changes and to plan accordingly.
Particuliers : ce qui change au 1er janvier 2025
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