Taxes and PACS: common declaration, effects and advantages

The conclusion of a PACS has fiscal consequences for income tax. Partners no longer declare their income separately, they are subject to common taxation. This significant tax advantage has other benefits, particularly in matters of inheritance tax or donation. Here is everything you need to know about PACS and taxes.

Capital video: All about the tax and the PACS (1)

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Is it mandatory to declare a PACS to taxes?

Creation of a new tax household for the PACS couple

There Conclusion of a civil solidarity pact (PACS) leads to the creation of a new tax household. The year of the PACS, the two partners are no longer individually imposed, but on the basis of common taxation. However, they still have the possibility of Subscribe to a separate declaration Only the year following the conclusion of the PACS. In the following years, the common taxation is automatic and compulsory. At the end of their declaration of income, the PACS couple thus receives only one tax notice with two names.

Declare the PACS online on impots.gouv.fr

Before embarking on the income tax declaration, the couple must declare the PACS to the tax services in 60 days following its conclusion. This approach can be carried out online on the site taxes.gouv.fr From the “Manage my Source” or telephone direct debit service from its public finance center. This information will then be taken into account by the tax administration for the PACS income declaration of the year.

Choose a common or separate taxation

During this approach, it is necessary to choose the common or separate taxation for the first year of the PACS, then the common taxation will be automatic for the following years.

The information and documents to be transmitted

PACS declaration at taxes involves indicating and providing the following information and documents:

• PACS date
• Partner’s bank details (name, first name, date of birth and tax number)
• Banking contact details of the new tax household
• Revenue from the new home

The new levy rate will apply two months after the date of transmission of the PACS declaration.

PACS: What tax advantages?

A drop in the tax rate after the conclusion of the PACS

The common taxation consists in declaring on the same declaration the income received by the two partners. The amount of the tax is then automatically reduced, since the couple is entitled to two parts of family quotient, against a before the conclusion of the PACS. The family quotient makes it possible to divide taxable income by the number of shares. It thus lowers the income level on each part, which reduces the income share imposed in the highest tranches.

A pacsé couple with a dependent child is entitled to 2.5 family quotient shares. A additional half-share is granted for the first two children and then an entire part for each child beyond two children.

A joint declaration of advantageous income in the event of a major wage difference

The joint declaration is advantageous when there is a significant disparity between the income of the two partners. Indeed, the total income of the partners are then divided by the number of shares of family quotient, which can generate a significant tax economy.

Simulation of the amount of the tax for a PACS couple

The government provides taxpayers with an online simulator to estimate the amount of income tax. It allows couples to know whether it is more interesting or not to make a joint declaration.

When should you go for 2025 taxes?

PACS partners are subject to same taxation methods as a married couple. They must subscribe a single declaration of income for all income and charges of the household from the year following that of conclusion of the PACS. Except, as seen previously, in the event of an option for a separate declaration, but only for the year following the PACS.

The date of the PACS has no real importance given the fact that all of the income received by the couple during the year of the PACS is concerned by the common taxation. And not only the income received between the date of the PACS and on December 31 of that same year. So there is no better month to go and take advantage of advantageous taxation.

What is the rate of withholding tax for a PACS couple?

Regarding PACS couples, there are two types of withholding tax rate.

Personalized rate

First, we find the source deduction rate, called personalized rate. The partners then supported the same percentage of sampling together. This solution is interesting if the partners have the same income significantly.

Individual sample rate

Partners can also opt for the individualized levy rate. It allows the rate to be adapted to the respective income of each partner. Thus, everyone will pay the tax up to their personal income. From September 2025the individual rate of withholding tax will be applied to PACS and married couples. However, it will always be possible to keep the home rate by indicating it in its personal space in the “Manage my sample at source.”

How to make your tax return when you are PACS?

After the PACS, the two partners constitute their own tax household and must declare their income together:

And their charges:

And their possible tax credits.

What are the advantages of the PACS in succession?

Inheritance rights

The PACS also has other tax advantages. For example, as part of an inheritance, each partner linked by a PACS is completely exempt from inheritance tax in the event of the death of one of them. Please note, in the absence of a will, the survivor does not inherit the deceased.

Donation

In matters of donation and in accordance with article 790 F of the General Tax Code, donations made between PACS partners benefit from a reduction of 80,724 euros.