Taxable income: definition and calculation

Taxable income is the income submitted to the progressive income tax scale. This tax is calculated on the taxable income of tax households. How is taxable income calculated? What are the taxpayer’s income taken into account? Here is everything you need to know about the 2025 income declaration.

Capital video: taxable income

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What is taxable income?

Taxable or taxable income income corresponds to All resources collected by a tax household from which the tax administration deals with income tax. It is a key concept in taxation, since it designates the total amount of the resources of a tax household, after tax deductions, from which the tax administration deals with income tax.

What are the resources taken into account in taxable income?

THE Resources taken into account in taxable income include a wide variety of income from different sources. Here is a detailed list of these resources.

Treatments and wages

The treatments and wages perceived as part of a professional activity are resources taken into account in taxable income. These resources include in particular:

• Wages perceived for salaried work.
• Performance bonuses, end of year, thirteenth month, etc.
• Vacation, dismissal allowances, etc.
• The advantages in kind: accommodation, official car, food provided by the employer.
• Silver advantages: vouchers, gift vouchers.
• Provision for illness, accident and maternity: daily social security, employer or other organizations.

Pensions

THE Old age and retirement pensions Perceived after a working career are also integrated into the calculation of taxable income. This includes basic and complementary pensions of public (CNAV, Arrco, Agirc, etc.) or private regimes, as well as life annuities (sums paid to a person from a certain age).

THE disability pensions paid to social insured people who can no longer work due to an illness or accident are also recognized in taxable income. As well as food pensions.

Movable and real estate income

Movable capital income from financial investmentsare also considered to be taxable resources: dividends, interest, fixed income investment products. Likewise, the income generated by the Rental of real estate Or the management of a real estate assets are part of taxable income (rents and property income).

Capital gains

Capital gains, that is to say the gains made during the sale of goodsare integrated into taxable income. This includes both real estate gains (gains made during the sale of real estate) and movables (gains made during the resale of goods, such as actions, precious objects, vehicles, etc.).

The benefits

Non -commercial profits (BNC), agricultural profits (BA) and industrial and commercial benefits (BIC) represent income generated by professional activities specific taken into account in the calculation of taxable income.

• The BNCs concern income from liberal professions such as lawyers, doctors, architects or artists.
• The BA relates to income from agricultural activities, whether for culture, breeding or agricultural production.
• BICs concern income from commercial, industrial or craft activities, whether commercial companies, entrepreneurs or service providers.

Where to find your taxable income?

On his tax return

On the tax return, there is generally a section dedicated to taxable income. This includes wages, property income, pensions, and other sources of income that are subject to tax. Once the declaration has been treated, The tax notice indicates the amount of taxable income of the taxpayer, as well as possible tax credits and applicable deductions.

On his salary slips

For employees, it is also possible to look at your salary slips to find out your gross income. For Calculate net taxable incomeit is then necessary to subtract social contributions and other charges. The amount also adjusts according to any tax deductions, such as professional costs or tax credits.

How to calculate net taxable income for its taxes?

Summate your categorical net income

At first, it is advisable to make the sum of all resources Perceived by the tax household and included in net taxable income (resources mentioned above: treatments and wages, pensions, BIC, BA, BNC, etc.). Once these sources of income have been identified, we add all these sums to obtain a global gross income.

Apply the flat -rate deduction of 10 %…

To find out the amount of your taxable income, it is necessary to apply to the amount of its treatments and wages a flat -rate deduction of 10 % which makes it possible to take into account the real costs (professional costs) of the taxpayer. In practice, it is the tax administration which applies this allowance On the amount of wages declared on the income tax return.

… Or deduce real costs

The taxpayer can give up this 10 % deduction and opt for the actual diet which makes it possible to deduct the costs that he really supported as part of the exercise of his professional activity. Especially if it believes that the value of these real costs is greater than the 10 %deduction.

Deduct certain charges from the amount obtained

The total amount of categorical net income (after applying the 10 % reduction on treatments and wages or the deduction of real costs) is then reduced following elements:

• deficits (land or agricultural deficits);
• food pensions paid to attached adult children or minors;
• Fees of reception of the elderly;
• sums paid on a PERP (popular retirement savings plan);
• Compensatory services paid following a divorce.

After subtraction of these deductible charges, the taxable amount obtained is divided by the number of shares of the tax householdBefore application of the progressive income tax scale.

Online simulator

To facilitate this calculation, the tax administration offers an online simulator which allows taxpayers toestimate their income tax depending on their situation. This simulator takes into account all deductions, abatements and tax credits. It is an excellent tool for having an estimate before completing your income tax return.

What is the calculation of the shares in the tax household?

Income taken into account in the calculation

Taxable income includes All income in the tax householdnamely income:

• Singles, married people, PACS partners;
• minor children;
• Adult children attached (children under the age of 21 or children under the age of 25, continuing their studies).

Number of tax houses

In return, for the calculation of the tax due, the taxable income is divided by the number of shares of the tax household, namely:

• A single person: a part.
• A married or PACS couple: two parts.
• The first dependent child: half a half.
• The second dependent child: half a half.
• The third dependent child: part.
• Each child beyond the third child: a part.

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What is the 2025 income tax scale?

The income tax scale is progressive. It makes it possible to calculate the amount of the tax for a share of a family quotient. In 2025, it was revalued by 1.8 %. Here is the scale 2025 for income from 2024 ::

• Below 11,497 euros: 0 % tax.
• From 11,498 euros to 29,315 euros: 11 % tax.
• From 29,316 euros to 83,823 euros: 30 % tax.
• From 83,824 euros to 180,294 euros: 41 % tax.
• Above 180,294 euros: 45 % tax.

What is maximum income not to be taxable?

There is a threshold below which the taxpayer is not taxable. As soon as the tax household has a higher taxable income than this threshold (17,436 euros for a single person in 2025), it is then taxable. The tax threshold is published each year And therefore depends on the family situation of the taxpayer.