Only three short months left to reduce your taxable income thanks to the payments made to your PER. To benefit from it as much as possible, here are the deduction ceilings to which you are entitled depending on your income and your professional status.
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– You have until December 31, 2024 to use your PER deduction limits!
It’s a little music that comes back at the end of each year. Individuals who wish to reduce taxes on their 2024 income must get started this year, in other words, before December 31. This is particularly the case if you wish to reduce your taxable income using your retirement savings plan (PER). This savings product, which will celebrate its 5th anniversary in a few days, allows you to put aside for your retirement, while reducing your tax bill.
Its principle is quite simple: the payments you make to your PER during the year 2024 can be deducted from your annual income subject to income tax, which will appear in your declaration in spring 2025. For example, with 1,000 euros paid into your PER this year, you will be able to reduce by 1,000 euros the income on which you will be taxed next year. If you are located in the marginal tax bracket (TMI) of 30%, the final tax rebate will be 300 euros in this example, 410 euros in the 41% bracket and 450 euros in the 45% bracket.
For employees: up to 10% of annual net income, or 35,194 euros
A significant tax advantage, therefore, but which remains subject to limits. For an employee, it is impossible to subtract more than 10% of their net taxable income : if you earned 50,000 euros last year, your retirement savings limit is 5,000 euros this year, even if you pay more into your PER. If your income is much higher, know that you can only deduct up to 35,194 euros of your taxable income this year. Conversely, a floor is provided for taxpayers who receive limited income: they can deduct up to 4,399 euros of their taxable income, even with a salary of 20,000 or 30,000 euros in 2024, which theoretically grants them a respective deduction of 2,000 and 3,000 euros.
>> Our service – Compare the performance of retirement savings plans (PER) using our simulator
For the self-employed, a ceiling of 85,780 euros in 2024
Same operation for the self-employed, but with even higher ceilings. This year, by paying into their PER, they can deduct from their income tax 10% of their taxable profits (BIC, BNC, etc.) from the previous year + 15% of the taxable profit between 1 and 8 annual ceilings of Social Security (i.e. between 46,368 and 370,944 euros). The deduction ceiling for the best-off self-employed is thus 85,780 euros in 2024. Those with smaller incomes can deduct up to 4,637 euros.
Don’t forget your unused ceilings from previous years
But the tax benefit of the PER does not stop there! As you will have understood, this year you benefit from a deductibility ceiling, which corresponds, for an employee, to the higher amount between 10% of your net income (or 4,399 euros if this amount is higher) or 35,194 euros. But if you have not used all or part of the ceilings to which you were entitled for the previous three years, you can add them to your ceiling for the current year! In other words, until the end of the year, in addition to your payment ceiling for 2024, you will be able to use those not consumed from 2023, 2022 and 2021. Example: you have a net taxable income of 50,000 euros which has not changed since 2021 and you have never used your deduction limits. You can therefore deduct this year the 5,000 euros to which you are entitled for 2024, and add the unused 5,000 euros from the three previous years, for a total of 20,000 euros (5,000 + 3×5,000 euros).
Succession: why you should keep your PER after retirement, or open it
Consider pooling ceilings with your spouse
If you no longer remember to what extent you have already used or not your ceilings from the previous three years and their amounts, go to your tax notice established this year based on your 2023 income. You will find the ceilings there unused amounts from 2021, 2022 and 2023, as well as the total ceiling to which you are entitled for payments made this year on your PER. And the icing on the cake for married or civil partnership couples: you can also use your spouse’s ceilings, if they have not been used either. To take advantage of this opportunity, you will then need to check box 6QR in your joint income tax return completed in spring 2025.
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