In 2020, withholding tax enabled households to pay less tax

In 2020, thanks to the monthly communication of income by employers (cornerstone of the withholding tax), households were able to pay less tax and above all, adjust the rate at which they are levied, welcomed Bruno Le Maire. , the Minister of the Economy and Finance, during a press conference dedicated to the launch of the 2021 declarative campaign.

Income tax: deductions fell by 5% in 2020

If Bercy has not ceased to extol the advantages of withholding tax since its launch in 2019, during the economic crisis of 2020 this device was particularly ” salutary “, According to the expression of Bruno Le Maire, the Minister of the Economy and Finance. Indeed, when many French people found themselves on short-time or simply unemployed in March and April 2020, they were able to immediately adjust the rate at which they are levied in their personal space on And, of course, they were only taken on account of the income actually received in the month in question.

In March and April 2020, withdrawals have indeed fallen from 5% to 6% compared to the same months in 2019, revealed Bruno Le Maire during a press conference on April 8, 2021. This possibility offered to taxpayers to modify their tax rate at any time has made it possible to ” to protect the purchasing power of the French, which has also increased by 0.6% “, Said Bruno Le Maire. Over the whole of 2021, 6.3 million requests for modification of withholding tax were recorded by the General Directorate of Public Finance, a figure up 73% compared to 2019.

Even more households affected by the abolition of the housing tax in 2021

For the year 2020, taxpayers should expect to pay less tax also thanks to the phasing out of the housing tax. This will disappear permanently for main residences in 2023. In 2021, 7.2 million additional taxpayers will benefit from a reduction for their 2020 housing tax: their next housing tax will be reduced by 30%.

This, after already a total relief for the benefit of 18 million households (or 80% of taxable households) in 2020. This tax measure has enabled them to reduce their tax bill by 570 euros on average.