Taxes: the flat tax and taxation on high incomes finally increased in 2025?

The government is meeting with the leaders of the different political parties to “find convergence” on the tax measures in the 2025 budget. Here are those that might concern you.

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“There will be no tax increases compared to what has already been announced.” This is the promise made to the French by the Minister of Economy and Finance, Eric Lombardon France Inter, this Monday January 6. Should we understand by this that taxes on individuals will not increase this year? Nothing is less certain, because the next budget presented in the coming weeks to Parliament will partly take up the document studied by the deputies and senators until the censorship of Michel Barnier’s government. “So that the period of uncertainty is as short as possible, we will start from the texts under discussion in Parliament”thus clarified on January 5 in an interview with Parisian the Minister responsible for Public Accounts, Amélie de Montchalin. However, in this first version of the 2025 budget, there were several measures increasing household taxes.

First of all, the famous “differential contribution” on high incomes. Included by the government in the finance bill for 2025, this flagship measure aimed to ensure that taxpayers with high incomes – 250,000 euros for a single person, 500,000 euros for a couple – pay at least an average tax. equal to 20%. An anti-tax optimization tool which ultimately cannot be applied, as Eric Lombard confirmed on January 6. “The contribution of high incomes cannot be made according to the modalities planned in 2024conceded the tenant of Bercy. On the other hand, we can find mechanisms which aim to ensure that people who have significant income participate in the same tax effort as all citizens. We must limit the effects of tax optimization”he insisted. The executive’s final decisions on this matter will await the end of the meetings with the various political parties that began this Monday.

A 33% flat tax on investment income?

And the wealthiest households may not be the only ones affected by tax increases in 2025. Because it is not excluded that the tax rate flat tax (or PFU, for single flat-rate deduction) – a tax at the overall rate of 30% (including 17.2% of social security contributions) applied to investment income, such as dividends and capital gains on shares, interest on savings accounts. savings, income from life insurance contracts, housing savings plans (PEL) and housing savings accounts (CEL) – increases. “The flat tax is 30%, except for people who have significant income (for whom) it is 34%. This is one of the subjects that are on the table: no decision has been made, neither in one direction nor another.indicated Eric Lombard, this January 6, on France Inter. And while the previous government was firmly opposed to an increase in taxation on investments, the new tenant of Bercy did not close the door to a change in the flat tax rate: “We are approaching this discussion in an open manner. If this were to change, it could only be a moderate development. The flat tax in developed countries is between 30 and 35%.he continued. A increase from 30 to 33% in the flat tax rateas voted by the Senate on November 26, is therefore no longer excluded.