Income tax of retirees: withdrawal, abatement and declaration

Retirement pensions are subject to income tax, as well as wages. How are the income of retirees imposed? How to declare them? How is pension taxes withdrawn? How is its amount calculated? What abatements can retirees benefit from? Focus on retirees’ income tax.

Capital video: taxation of pensions

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What is the taxable amount of a retirement pension?

Retirement pensions are taxable

Retirement pensions, whether they come from the general scheme, from additional schemes or special regimes, are considered by the tax administration as Replacement income. As such, they are taxable in the same way as the wages perceived during working life. This taxation concerns all of the pensions received.

Inform the tax administration of its change of situation on taxes.gouv.fr

At the start of retirement, it is necessary to inform the administration of its new situation. Indeed, retired, overall income decreases. THE Source levy rate must therefore be adapted. You just have to go to your personal space of the Portal Impots.gouv.fr, in the section “Manage my sample at source”. It only remains to update the amount of income.

What are the taxable income for retired people?

Pensions received by retired persons constitute a taxable income tax income, Whatever taxpayer’s pension plan or their payment mode. Are thus taxable on income tax:

• All sums paid by pension plans (basic pension plan, additional, special regimes) or by the State;
• retirement services paid in the form of capital;
• widowhood allowances;
• allowances paid to certain veterans;
• disability pensions;
• The life annuities perceived following a donation or an inheritance;
• alimony.

What income is exempt from income tax for retirees?

On the other hand, are exempt from income tax:

• personalized autonomy allowance;
• the solidarity allowance for the elderly (ASPA);
• additional disability allowance (ASI);
• the minimum old age allowances;
• Old age pensions of Social Security, the amount of which does not exceed the amount of the allowance for old salaried workers (AVTS), as soon as the beneficiary’s resources do not exceed the income ceiling fixed for this allowance;
• Certain military pensions, war pensions and similar (fighter retirement);
• specific dependence service;
• the increase for assistance of a third person;
• temporary orphan pensions.

What is the tax rate of a retiree?

No specific rate for retirees

There is no specific tax rate For retirees who are subjected to the same scale as the assets. The tax is calculated from the reference tax income, the number of shares and according to the sections of the scale updated each year. However, certain reductions or exemptions may apply depending on age, income or personal situation.

Threshold for net taxable income in 2025

For the tax paid in 2025 on 2024 income, the threshold of net taxable income of a single person (single, divorced, separate or widower) with a share of family quotient is fixed at 17 436 euros. Below this threshold, income is exempt from tax. The tax rate applied to the tax household is on page 4 of the tax notice.

>> Our complete tax guide. How to declare your income? How to reduce your tax bill via investments? What to do in the event of administration control?

How is the amount of tax deducted from the retirement pension is calculated?

The taxable amount is calculated Based on the tax rate applied to the taxable amount of the retirement pension. It corresponds to the sum:

• the gross amount of the pension;
• Possible taxable advantages linked to the pension (children’s increase, NBI, etc.);
• reduced to the amount of the CSG deductible possibly levied on the pension.

What social security contributions is subject to retirement?

Retirement can be subject to Three social security contributions ::

These levies are affected by these levies, retirees payable by a compulsory French health insurance scheme and retirees whose reference tax income exceeds a certain income threshold.

What is the amount of the tax allowance on retirement pensions?

A tax reduction of 10 % automatic

On the amount of the sums declared by the taxpayer for his retirement, the tax administration automatically applies a tax reduction of 10 %. In 2025, this reduction on income 2024:

• cannot exceed 4 399 euros per tax household ;
• cannot be less than 450 euros per taxpayer pensioner.

In certain cases, the taxpayer can also deduct social security contributions (when they have not been retained on the amount of their retirement pension) and the expenses caused by their perception.

A project to study the study

Although maintained in 2025, This reduction is the subject of debate. The pension orientation board (COR) and MEDEF have suggested its abolition, believing that it could generate up to four billion euros in additional tax revenue per year. This proposal has not yet been validated, but is in consultation and could become effective.

What abatements can the elderly benefit in 2025?

Conditions to benefit from the allowance

The elderly more than 65 years As of December 31 of the year concerned by the Declaration and whose overall taxable income does not exceed 17,510 euros will benefit from a reduction. In accordance with the provisions of article 157bis of the CGI, this reduction is granted, under the same income conditions, whatever their age, to:

• beneficiaries of a military invalidity pension;
• holders of an accident accident annuity for inability of at least 40 %;
• To holders of the inclusion mobility card mention “invalidity” for an inability of at least 80 %.

Amount of allowance

The amount of the reduction in 2025 is:

• 2 796 euros For people whose overall taxable net income 2024 does not exceed 17,510 euros (or 5,592 euros for a couple);
• limited to 1,398 euros for income between 17,510 euros and 28,170 euros;
• No reduction is granted beyond 28,170 euros.

Case where the reduction can be doubled

This reduction can be doubled for couples imposed in common when both people the component meet the conditions age or disability. On the other hand, each person is entitled only to a single allowance. This reduction is calculated directly by the tax services. It does not apply to the tax itself, but to total taxable income.

Cases where retirement home expenditure is deductible

Retirement home expenditure for dependent people are deductible at 25 %within the limit of 2,500 euros deducted per year, per person hosted. Home adaptation expenses can give the right to a tax credit.

How is pension taxes withdrawn?

Source withdrawal since 2019

The entry into force of the withholding tax on January 1, 2019 concerns retirees. Until this date, a retiree paid tax on retirement pensions either by provisional third parties or by monthly levies. Since then, the tax is directly removed by the pension fund (s), communicated by the tax administration, then sent to the organizations concerned.

A tax rate common to all pension funds

If a retiree perceives several pensions, Each pension fund takes the levy at the source at the same tax rate. The tax is donated by each pension fund to the public treasury in proportion to the income taken by them. The withholding tax applies no matter whether it is basic retirement or additional retirement.

What are the deductions on Agirc-Arrco supplementary retirement?

In 2025, Agirc-Arrco pensions were submitted to social security contributions : CSG, CRDS, CASA and Health Insurance. The rates vary according to the reference tax income and the situation of the retiree. The samples are adjusted each year. The deduction from the income tax is added to these deductions.

How to declare your retirement to taxes?

Retirement insurance transmits, each year, the amount of taxable taxable retirement directly to the tax administration. This amount is then on The Préremplie Declaration income. At the time of the declaration of income, in the spring, just check the amount and validate your declaration online.