Tax reduction: principle, request and deadline

The tax reduction consists in completely or partially decreasing the tax due by a taxpayer in France. This reduction can take place automatically by decision of the tax administration or on complaints from the taxpayer, whether local taxes or on income. We tell you everything!

What is a tax reduction?

Tax reduction: definition

A tax reduction is a decrease, total or partialof the amount of the tax that a person must pay in the state. It directly decreases the amount of the tax due according to certain expenses or situations (donations to professional associations or costs), a tax reduction consists of a partial or total cancellation of the tax due.

Automatic degreation

In some cases, the tax administration applying automatically, without the taxpayer do not have to request it. This may happen, for example, when the tax is poorly calculated or in the event of a double taxation or being of legislative origin, or even applied automatically by the taxman.

Decrease on request

In other situations, the taxpayer must request a reduction in subjecting a specific request to the tax administration. This may be the case, for example, if the taxpayer disputes the tax he must pay or if he is in an exceptional situation which justifies a reduction or a request for graceful discount.

Declassation vs request for graceful discount

The graceful discount allows a taxpayer to ask the tax authorities to grant him a reduction or partial cancellation of his taxes, increases or penalties, due to exceptional circumstances or financial difficulties. This is a leniency measure granted exceptionally by the tax administration.

In what cases can we benefit from a tax reduction?

To apply for tax reduction, the taxpayer must justify your request by :

• an unpredictable loss of income;
• an exceptional circumstance (death, separation, disability);
• a discrepancy of the tax payment period;
• a disproportion between the importance of tax debt and the level of income;
• An error made by the tax administration.

What is the difference between tax driving and restitution?

The reduction intervenes when the tax administration decides to completely reduce or cancel a tax initially established. This can happen in the event of an error or special situation. The restitution, on the other hand, occurs when a person paid a higher tax amount to the one who was actually due. For example :

• If a taxpayer has paid excessively high provisional installments compared to his final tax or following a tax calculation error;
• If a taxpayer has benefited from a tax reduction or a tax credit which has not been taken into account in the initial calculation of the tax payable.

In summary, the reduction is a tax reduction decided by the tax authorities, while restitution is a tax reimbursement.

>> 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?

What is the difference between tax driving and tax exemption?

The tax exemption consists of a Total or partial exemption payment of the tax. This means that, for some people or in certain specific situations, the tax is not due. Declassation is a tax reduction, which can be requested in the event of an error or in specific situations. But the remaining tax is still due.

Who benefits from a reduction on the property tax?

Decrease on the property tax of a main home

A automatic degreation and automatically 100 euros is applied to the property tax in the following situations:

• When it concerns a main residence.
• When a person in modest condition over 65 and under 75 on January 1 of the tax date, as soon as the tax income does not exceed certain ceilings.
• The beneficiary of the reduction must live alone, or with his spouse, or with dependents, or with people holding the same allowance.
• If the person lives in a retirement home and their main accommodation remains free.
• THE Persons with disabilities or invalids can also benefit from a reduction in the property tax.
• In some geographic areas, special exemptions or tax relief can be applied to the property tax.
• Owners of real estate damaged or destroyed by natural disasters for the period when the property has become uninhabitable or unusable.
• THE owners of agricultural land for agricultural land not built under certain conditions.

FOOD TAX DEBERVATION

This reduction automatically applies Without the taxpayer having any steps to take. The latter receives a Notice of degreasing the property tax by the tax administration to let him know. This notice confirms that the initial property tax has been adjusted and specifies if the sum has been modified by a reduction.

Decrease on the housing tax

Until 2023, a reduction was applied to the housing tax of the main residences. Today, this housing tax no longer exists. Note however that the housing tax, always due on second homes In the context of local taxes, is without debit.

Who benefits from the reduction on income tax?

An income tax tax can be applied when the tax administration automatically proceeds to the reduction after having noted an error, or when the taxpayer Make a complaint After having noted an error on the part of the taxes or if he wishes to make a request for a graceful discount.

How to have a tax reduction?

The request to tax tax can relate to income tax or property tax. The request for degreasing is examined on a case -by -case basis, depending on the applicant’s personal situation, by the tax authorities, who renders his decision in both month.

2025 tax reduction request

The request for degreation must be addressed to the tax department on which the applicant’s taxation depends (generally, that of his home). This request can be written (mail at the public finance center) or oral by going directly to the tax department. It is also possible to send an email via its particular space on the tax site.

4805-SD form for tax degreasing

For faster treatment, it is advisable to fill out the 4805-SD form questionnaire. It must be fulfilled with care and include several important information. The taxpayer must also provide supporting documents corresponding to His request (medical certificate for disability, certificates for a request related to a natural disaster).

Tax administration response

The tax administration, after examining the request, endeavors to give its decision as soon as possible.

• If no answer is made in a period of two monthsthe request is considered to be rejected.
• If the tax administration accepts the request, it addresses the applicant a degreation notice. This document mentions the amount of the reduction which can be total or partial.

What are the deadlines for requesting tax reduction?

For income tax

In terms of income tax, the taxpayer can make a complaint Before the 31st December of the second yearwhich follows that of the recovery of the tax. If the request results from an error on the part of the tax administration, the taxpayer may present a complaint until December 31 of the year following that during which he was aware of the error.

For local taxes

Regarding local taxes, the request for degreasing must intervene Before the 31st December of the following year that of tax recovery. Regarding the tax service, the latter may carry out a automatic tax reduction until December 31 of the fourth year following that of the expiration of the claim period granted to the taxpayer.

How to be reimbursed for a tax reduction?

The reimbursement of a tax reduction depends on the nature of the reduction.

In the event of a source deduction

If the tax has been deducted at source from income, the reduction may be Refunded directly on the taxpayer’s bank account. The reduction can be integrated into the annual income declaration. The tax administration will then recalculate the amount of the tax, and if a reduction is due, the reimbursement will be made automatically.

For direct taxes

For direct taxes, therefore paid directly by the taxpayer, there are two options:

• If the payment of the tax has taken place, the taxpayer can receive a refund directly on his account, as a rule, a few weeks after acceptance of the reduction.
• If the reduction is applied after sending the tax notice, but before the effective payment of the tax, the tax administration will automatically adjust the amount of the tax to be set. The taxpayer will only pay the net amount, after applying the reduction.

When are we reimbursed following a tax reduction?

For taxes withdrawn

When the tax has been deducted from the source, the reimbursement can be made in a relatively rapid manner. Most often, it do in the two or three month After acceptance of the reduction. If granted after the declaration, the tax administration reimburses within a few weeks after updating the tax calculation.

For land taxes

Decrease on direct taxes, such as property tax or housing tax, can also lead to a refund, but deadlines may vary depending on the taxpayer situation and the payment method used:

• If the reduction is granted after the payment of the tax, the tax administration reimburses the amount dotted in the a few weeks after the agreement Decreal.
• If the reduction is granted before the tax is paid (for example, before the deadline of the property tax), the damaged amount will be automatically deducted from the remaining amount due, and the taxpayer will only pay the net after the reduction.

Refund in the event of a complaint or tax error

If the taxpayer has paid too high an amount, due to an error or if exemptions or degrees have not been applied, he may request a refund via a tax complaint. The administration reimburses within two to six months. The taxpayer can receive delay interest if the error was attributable to the taxman.