Tax credit: definition, types and payment 2025

The tax credit is a tax relief system. Employment of an employee at home, childcare costs of young children … are all expenses allowing a taxpayer to obtain this tax advantage. How does it work? What are the conditions to benefit from it? Who has the right to tax credit? When was it paid in 2025? Answer.

Capital video: What is a tax credit?

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How does the tax credit work?

The tax credit is an amount that comes in deduction of income tax due by a taxpayer. There are several types: the tax credit for the employment of an employee at home, for childcare costs … If the amount of the tax credit is less than the income tax due, the tax is liable for taxpayer. If the amount of the tax credit is greater than the income tax, the surplus or all (if the taxpayer is not taxable) is reimbursed by the Directorate General of Public Finances.

What differences between tax deduction, tax reduction and tax credit?

Tax deduction: definition

The tax deduction is a retired sum of taxable income. It can be removed from global gross income, for example in the case of the deduction of alimony. It can also be made on one of the categorical income, for example the deduction of the real costs of the salary.

Tax reduction: definition

The tax reduction is a sum deducted directly from the amount of the tax and not of taxable income. It only applies to taxable persons. A tax reduction occurs, for example, when declaring a donation to an association when declaring its taxes. There tax reduction will be immediately effective.

Tax credit: definition

The tax credit, as is the tax reduction, is a sum subtracted from the total amount of the tax. He intervenes for example in the event of costs generated by childcare. Unlike the tax reduction, the tax credit also allows a reimbursement on the part of the tax administration in the following two cases:

• The amount of the tax credit exceeds the tax
• The person is not taxable

Tax credit for the employment of an employee at home

Cleaning lady, gardening, home help … Examples of services

The personal services tax credit allows the taxpayer to benefit from tax reductions for the employment of an employee at home. Here are some examples of these services:

This tax credit is open to all taxpayers in activity, without activity or retired who initiate expenses for personal services. Whether for their main or secondary residence and whether they are tenants or owners.

Personal services tax amount

The tax credit is to 50 % of the expenses incurred for personal services within the limits of a ceiling that varies between 12,000 euros and 20,000 euros per year depending on your situation. The amount of these expenses must be declared by the online taxpayer 7dB of the income declaration and the amount of aid received (APA, PCH, CESU pre -funded …) must be postponed to box 7DR.

How to benefit from the tax credit for childcare costs?

Conditions for the declaration of income 2025

This tax credit applies to the care of young children under the age of six (childcare costs linked to nursery or maternal assistant expenses). Can benefit from this tax credit, parents or grandparents:

• have one or more dependent children under 6 years of age on January 1 of the taxation year (for the 2025 declaration of the 2024 income, it must be born in 2018 or after),
• keep the child to keep by an approved maternal assistant,
• keep the child to be kept by a host establishment for children under 6 years old

Note : Aids collected for childcare, such as the complement of free choice of childcare or aid paid by the employer, must be deducted.

2025 tax credit amount

The amount of the childcare tax credit is equal to 50% of the sums paid within the limit of the following ceilings.

Tax credit for donations made to organizations of general interest

The taxpayer can benefit from a 66% tax reduction On donations made to organizations of general interest, up to a limit of 20% of its taxable income. The amount of income tax reduction, for donations made for the benefit of people in difficulty providing for free meals is for 75% within the limit of 1,000 euros.

Tax credit for installation expenditure for electric vehicle charges

Conditions for a single person and a couple

Taxpayers who initiate expenses for the acquisition and installation of an electric vehicle load system within their main or secondary residence can benefit from this tax credit.

It is limited for a single person to a load system for the same accommodation. And for a couple, with two load systems for the same accommodation. Provided that you are subject to common taxation. Expenses linked to the installation of the load system for electric vehicle must be paid from January 1, 2024 and the work must be invoiced before December 31, 2025 included. Expenses paid in 2025 will have to be declared in 2026.

Credit amount for installing a charging station in 2025

The amount of the tax credit is equal to 75% of the amount of expenses and is limited to 500 euros by controllable load system.

Tax credit for accommodation adaptation work to loss of autonomy linked to age or disability

Eligible work to benefit from the housing adaptation tax credit

Taxpayers domiciled fiscally in France, owners or tenants, can benefit from this tax credit. In cases where, they carry out work in their main residence facilitating access for an elderly or disabled person or work to adapt housing to loss of autonomy or disability. For example :

• installation of ramps,
• Movement, signaling or alert detector,
• suitable doors or windows,
• non-slip floor covering,
• Equipment engine …

Conditions related to disability and income

People who can benefit from it must also meet the following three conditions:

• be 60 years old and over
• have an incapacity rate equal to or greater than 50%
• have an intermediate level of income

If a taxpayer considers to meet the conditions to benefit from this tax credit, he must indicate the amount of expenses incurred in this respect in the corresponding box of his tax return to benefit from it. For expenses paid in 2025, the work must have been carried out before December 31, 2025.

Amount and ceiling of the tax credit for works

The tax credit rate is 25% of the total amount of expenses. The latter is capped at 5,000 euros for a single person and 10,000 euros for a couple subject to common taxation.

When do we receive the reimbursement of the 2024 tax credits in 2025?

Payment of the advance mid-January 2025

A 60 % advance As a tax credit, calculated on the basis of the tax declaration of the previous year, is paid in January. Then, depending on the expenses actually made, The balance of tax credits is paid in the summer.

Thus, in 2025, the 60 % advance was calculated on the basis of 2023 taxable income from the 2024 income declaration. It will be paid January 15, 2025. An average amount of 639 euros, it concerns more than 9 million households Having benefited from tax credits and reductions in 2024. Payment is made by transfer, labeled “advances Credimpot” directly on the taxpayer’s bank account.

Payment of the Summer 2025 balance

The balance of the tax credit (the remaining 40%) will then be paid in the summer of 2025 after recalculating on the basis of the income tax return in spring 2025.