This system, today in the government’s viewfinder, allows millions of French people to reduce their taxes. But not everyone knows it.
64 years old. It is the legal age of retirement in France. But in reality, some stop before, others continue to work longer. Once retired, it is well known, each euro counts even more. Because for many, the standard of living drops, sometimes brutally. Less income, health expenses that increase, an electricity or heating bill that weighs heavier than before … Result: the little boosts that come from the state can really make the difference on a daily basis. Precisely, there is an advantageous device for all retirees and those who approach it. In 2024, 14.84 million households were able to benefit from this system.
It makes it possible to alleviate the tax burden of retirees by reducing their taxable income, without any approach to do. This is the 10 % lump sum reduction that applies to pension pensions, but also to annuities perceived by taxpayers, as well as disability and food pensions. Concretely, during the declaration of income, the tax authorities automatically applies a 10 % deduction on the total amount of retirement pensions received. The reduction is subject to a floor and a ceiling, revised annually. In 2025, it was revalued by 1.8% and was well maintained this year despite the requests of certain politicians to remove it to save budgetary.
Indeed, the 10 % reduction on retirement pensions is this year capped at most at 4,321 euros for all members of the tax household and a minimum applicable of 442 euros per pensioner. For example, a retiree who receives less than 4,420 euros in pension in the year will be entitled to the minimum reduction of 442 euros. For people who received less than 442 euros, they have “Right to a reduction equal to their pension”underline our colleagues from UFC Que Choisir. Conversely, a couple affecting more than 43,210 euros of retirement will not exceed the maximum reduction of 4,321 euros. Therefore, we often agree that this tax advantage is more interesting for retirees who live alone.
Furthermore, in principle, the amount of the reduction is pre-filled on the declaration of income, in the section “Pensions, pensions, annuities” in box 1as or 1BS. For his part, the taxpayer has no approach to do, it is the tax administration who takes care of applying the allowance. However, it is advisable to check the amounts indicated to ensure that they are correct.
