Budget 2023: Personal Tax Measures and Grants

Support schemes to cope with rising energy prices

Gas and electricity tariff shield extended in 2023. The rate increase shall be limited to 15 % from 1^er January 2023 for gas, and also 15% for electricity as of 1^er February 2023. This limitation of the increase in rates applies to all households, condominiums, social housing, small companies and smaller municipalities.

A fuel allowance of € 100 will be paid to the 10 million most modest workers who use their vehicle (car or two-wheeler) to go to work. This assistance can be requested from 16 January 2023 on a form posted on the website taxes.gouv.fr.

Aid for the ecological transition

Aid for the purchase of bicycles is renewed and increased in 2023. The €300 ecological bonus for the purchase of a new bicycle since August 2022 is renewed for 2023. The eligibility threshold is increased, in order to benefit from the aid, the reference tax income per unit must be less than €14 089 compared to €13 489 previously. To qualify for the €400 bonus, the tax income per unit must be less than €6,358 compared to €6,300 previously.

MaPrimeRénov' Serenity is strengthened and MaPrimeRénov' is more oriented towards more efficient renovation operations. The Renovation Attendant becomes mandatory from 1^er January 2023 to receive grants for work to improve the overall energy performance of housing.

One noNew social leasing scheme : A €100 per month electric car rental service for modest households is expected to be launched in the second half of 2023.

Tax measures for individuals

Income Tax Cut: tax scale in order to take into account the effects of inflation on the level of household taxation, the income brackets of the general government are increased by 5.4% for the 2022 income tax.

Slices for a share of family quotient:

• Up to €10,777 (bracket 1): 0% tax rate;
• From €10,778 to €27,478 (bracket 2): tax rate of 11%;
• €27 479 to €78 570 (bracket 3): 30% tax rate;
• From €78,571 to €168,994 (bracket 4): tax rate of 41%;
• More than €168 994 (bracket 5): tax rate of 45%.

Adjustment of the withholding tax : the threshold for requesting a reduction in the withholding tax is lowered to 5 % instead of 10 %. Since 1^er  in january 2023, you can request a reduction in your withholding tax rate in the event of a drop in revenue resulting in a 5% reduction in withholding taxes over the year.

The Child Care Expense Tax Credit Limit under 6 years old is raised to €3,500 (compared to €2,300). The tax benefit can therefore reach €1,750 per child instead of €1,150 per child (50% of the money spent in 2022).

The additional tax half-share is extended to all widows and widowers of veterans. Until now, the tax benefit has been limited to people over 74.

The tax credit for a first press subscription is deleted for subscriptions taken out on or after 1^er January 2023.

The tax credit for electric vehicle charging stations is extended until December 31, 2025.

To benefit from the home-based employee employment tax credit, the nature of the services paid for in the next tax return (child care, housekeeping, gardening, etc.) should be indicated.

The development tax on swimming pools is increasing. The value used to calculate the development tax on swimming pools increases by 25% at 1^er in January 2023, it went from €200 to €250 per square meter.

Final abolition of the residential tax on principal residences from 1^er January 2023, this tax remains due for second homes.

Tax rates on vacant dwellings in tense areas They will increase from 12.5% to 17% for the first year of vacancy and from 25% to 34% for the following years.

Tax reductions under the classic Pinel scheme are changing : they increase from 12% to 10.5% for a 6-year lease, from 18% to 15% for a 9-year lease and from 21% to 17.5% for a 12-year lease. The Pinel + device has additional rules to take advantage of the tax reductions unchanged: minimum imposed surface area, balcony, terrace or garden, energy and environmental performance criteria for housing are imposed.

Other measures for individuals

The maximum face value of restaurant titles from €11.84 to €13.

Remains the responsibility of the Personal Training Account (PTA). The 2023 budget establishes the principle of the participation of the CPF holder in the financing of eligible training (training action, validation of experience or skills assessment). The terms of this “co-payment” must be specified by decree. Jobseekers and employees benefiting from an abundance of funds from their employers to finance training would be exempt from this contribution.