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Tax niche: definition, ceiling and list

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Tax niche: definition, ceiling and list

Tax niches are derogations from tax rules which certain taxpayers may benefit, under conditions. The amount of these tax advantages is capped each year for the calculation of income tax. Who can benefit from it? What are the types of tax niches? How much is there in France? Answer.

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Summary

What is a tax niche?

Definition

A tax niche is a term used in taxation to designate tax advantages from which certain taxpayers can benefit. It consists in reducing the amount of income tax subject to respecting certain conditions. Tax advantages can take several forms: tax reduction, tax credit or deduction of taxable income. There are two types of tax niches.

Vertical niches

THE vertical tax niches are tax systems specifically oriented towards a sector of activity (economic, social or environmental) or a special expenditure category. They are mainly intended to encourage investment such as rental investment.

Horizontal niches

THE Horizontal tax niches represent tax advantages which some taxpayers benefit without any particular act to be completed. This is for example the exemption from interest produced by a savings book.

Social niches

He There are also social niches. These are measures to exempt, reduction or dismay, which apply to social contributions and contributions. This is the case, for example, of exemption measures relating to apprentices, home aid or even occasional agricultural workers.

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What are the objectives of tax niches?

Tax niches are rules or tax systems that allow taxpayers to decrease their tax. As such, they constitute a shortfall for the state. However, these advantages are not without consideration. Indeed, each tax niche meets an objective for the government.

Promote employment (tax credit for childcare and employment of an employee at home)

Here are the various tax advantages that help promote employment in France:

Encourage real estate investment (Pinel, Malraux …) law)

Some tax niches aim to encourage real estate investments. For example :

  • Pinel law (the system ended in December 2024);
  • Forest challenge;
  • Historic monuments device;
  • Malraux law …

Support entrepreneurship and business development

Several investments, leading to a tax advantage, are intended to support entrepreneurship and the development of business activities:

Support energy savings

Finally, reduced rate VAT applicable for certain energy renovation works, tax credits for energy saving expenditure makes it possible to encourage sustainable development.

Read also:

Denormandie system: Conditions and amount

How many tax niches are there in France?

A total cost of more than 85 billion euros

According to the document annexed to the 2025 finance bill, there are around France in France 474 Tax niches. They represent for the State a total cost of 85.1 billion euros (7.7 billion euros are intended only for businesses).

List of the most expensive niches in the state

Among the most expensive tax niches for the state are:

  • the research tax credit;
  • the tax credit for the employment of an employee at home;
  • the 10 % reduction in terms of income tax on the amount of pensions;
  • exemptions from the sums paid under participation, profit -sharing or subscription;
  • the tax credit for childcare for young children;
  • The reduced rate of VAT to 10% applied to improvement, processing, development and maintenance work.

What is the tax ceiling in 2025?

An amount capped each year

The amount of tax advantages granted as tax niches is capped. Indeed, each year, for the calculation of income tax, the taxpayer cannot benefit from a reduction or a tax credit beyond a certain amount.

Tax ceiling 2025 income 2024

For the 2025 taxation of the 2024 income, the total of tax advantages cannot provide a reduction in the amount of tax due 10,000 euros. The cap is the same for all taxpayers, regardless of their family situation.

It applies to the tax advantages granted in return for a service or an investment. On the other hand, it does not concern the following tax advantages:

  • Advantages linked to the personal situation.
  • Advantages linked to the pursuit of an objective of general interest without consideration.

Amount of the overall cap of tax advantages for an overseas investment

The amount of the overall cap is set at 18,000 euros for the tax reductions granted for investments overseas (in particular the Pinel rental system overseas or even subscriptions to the capital of Sofica). This cap applies by tax household.

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