Reference tax income: What is it?

Reference tax income (RFR) is communicated each year to the taxpayer by the tax administration. Calculated from the income declared by the tax household, its amount serves as a criterion to benefit from certain tax advantages, special abuses or social aids (college scholarships, social housing, etc.). Explanations!

What is reference tax income (RFR)?

Reference tax income for the year: definition

THE Reference tax income (RFR) is an indicator calculated by the tax administration, which reflects the financial resources of a tax household. It is a function of Various income and gains declared by the taxpayer on his income tax return (form 2042). The RFR is used to determine the eligibility for certain aids or exemptions.

RFR: income taken into account by taxes

Reference tax income (RFR) takes into account all the income declared to the taxman, whether they are taxable or not. The RFR constitutes an indicator regarding the standard of life of a tax household, which is why its perimeter is so wide:

• Activity income: wages, treatments, retirement pensions, unemployment benefits, daily social security allowances (IJSS), etc.
• Revenues from the assets: rents received, dividends, interest in bank accounts, bond income, capital gains on the sale of real estate, shares or securities …
• Food pensions.
• Certain tax exemptions, such as dividends and exempt interest in tax.
• Tax credits and reductions, such as the home employment tax credit.
• Revenues exempt or partially exempt, such as certain abatements for the elderly, invalid, or for overseas income.
• Exceptional income: premiums, gratuities or compensation.

Reference tax income: net or gross?

The RFR takes into account the taxable net income, which represents the Sum of home income After application of tax deductions and charges. But it includes other elements, such as tax reductions (example: home employment tax credits, for energy expenditure), as well as capital gains and certain exempt income.

What difference between taxable net income and reference tax income?

Taxable net income

Reference tax income must not be confused with net taxable income (RNI), which corresponds to income subject to progressive scale income tax, overall net income less specific abatements. It is generally lower than the RFR and serves directly as a basis for taxation to the progressive income tax scale.

Categorical net income

Furthermore, the RFR should not be confused either with categorical net income, which corresponds to net income (Salaries or income from self-employed entrepreneurs, property income, etc.) less tax charges and abatements. It is mainly used to determine the eligibility of the home to certain social or tax assistance, such as social assistance or scholarships.

What is the reference tax income for?

To define certain tax advantages

Reference tax income is requested by certain organizations to determine whether the tax household can benefit from tax advantages Or, conversely, if he has to pay taxation on high income (exceptional contribution on high income or CEHR). Here are the exemptions in terms of local taxes which refer to the RFR:

• The exemption from CSG and CRDS on return to employment aid.
• The exemption from real estate gains made by a person holding old age pensions or a disability card.
• The tax advantages linked to the Pinel law.
• The total or partial exemption from property tax.
• The lack of obligation to declare your income online.

To define social aid

In general, the reference tax income (RFR) plays a key role in assessing the resources of a home, because it allows Calculate the family quotientan essential indicator for determining the financial situation of the household. The RFR thus becomes a central criterion for the opening of rights, or not, from a household to a set of social assistance:

• A scholarship (student scholarship, high school scholarship, college scholarship).
• Specific prices for canteen, crèche or access to leisure centers.
• Access to universal health coverage (CMU).
• The allocation of HLM housing.

Other uses of RFR

Reference tax income (RFR) is not limited only to tax advantages and social assistance, but is also used for the granting of some grants And premiums specific. This concerns in particular the amount of certain anti-pollution premiums and the opening and maintenance of a popular savings book.

Where to find and how to know your reference tax income?

In his tax notice of year N-1 (2024)

Reference tax income (RFR) appears on the tax notice sent each year the tax administration. For the year 2025, the RFR will be indicated on the tax notice of 2024 Received normally in September 2024. It is located in the “Your references” section, which is on the guard page, top left.

This section contains several important information concerning your tax file, such as the reference tax income itself, THE tax number which uniquely identifies the file, and the Number of additional tax shares, which can affect the amount of tax payable.

Online

It is also possible to find your online reference tax number, on your personal space, on the tax site (www.impots.gouv.fr). Once connected, it is in the section “” Documents ” Or “ My tax documents »». By accessing its 2024 tax notice, this amount will be indicated in the same way as on the paper version.

How is the 2025 reference tax income from a home calculated?

Taxable net income

Every year, from the elements provided by the taxpayer on his tax return, the taxman determines the amount of his reference tax income. The calculation method is also detailed by the Official Public Finance Bulletin. Concretely, this is the Taxable net amountafter application of quotient rules, increased by certain elements.

The elements to add

To taxable net income, you must therefore add:

• The amount of the 40 % reduction on dividends or abatements for holding company securities.
• The amount of capital gains on taxation of taxation and exempt professional capital gains.
• The exempt income perceived by expatriates and tips.
• The amount of certain charges deductible from global income (general social contribution on income related to heritage, food pensions, etc.).
• The amount of income submitted to the liberating levy (income from micro-entrepreneurs, withdrawals from life insurance contracts, etc.).
• The amount corresponding to the rights appearing in a time savings account and used in tax exemption.
• The amount of bic carried out by companies in rural revitalization areas, research and development or by young innovative companies.
• The amount of BIC/BNCs made by companies in urban free zones.

A calculation based on income N-1

Reference tax income is calculated from the income received by the taxpayer and financial resources at his disposal during the previous year. Thus, the reference tax income which will be indicated on the 2025 tax notice will be calculated from the income received by the taxpayer From January 1 to 31 December 2024.

Examples of calculation of the reference tax income

Calculation of average reference tax income for a single person

For a employee and single person having no other income, the reference tax income is equal to their net professional salary, namely their salary after application of the reduction of 10 % For professional expenses or after deduction of real costs.

• If a single employee earns 1,800 euros net per month, he declares 21,600 euros on his tax return.
• The reduction for professional expenses is equal to 21,600 euros × 10 %, or 2,160 euros.
• Its reference tax income is equal to 21,600 euros – 2,160 euros, or 19,440 euros.

Calculation of reference tax income in the event of alimony

A single taxpayer received 50,000 euros net over the year and paid alimony of 5,000 euros. The reduction should be deduced for professional expenses (50,000 euros × 10 % = 5,000 euros, or 45,000 euros in wages), then alimony. The RFR is 45,000 euros – 5,000 euros, or 40,000 euros.

Calculation of reference tax income for retirees

A married and retired couple without dependent children receives 40,000 euros in retirement pension and 1,000 euros in dividends. The maximum reduction in retirement pensions is 4,399 euros in 2025. The amount of the pension to be retained is therefore 40,000 euros – 4,399 euros, or 35,601 euros.

To this must be added 600 euros of taxable dividends (1,000 euros – the reduction of 40 %) and reintegrate the reduction of 400 euros, or a reference tax income of 35,601 euros + 600 euros + 400 euros, or 36,601 euros.

>> 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?

From how much is we taxable?

A person is taxable when their net taxable income exceeds the threshold corresponding to their family quotient. For a single person, the Threshold is 1 964 raw euros per monthand for a couple, there are 3,248 euros. If the income is greater than these amounts, the tax is calculated according to a progressive scale.