Property tax, income tax, value sharing bonus: the changes awaiting you in 2024

The increase in property tax will be limited to 3.9% in 2024 in most municipalities. ILLUSTRATION MAXPPP – Bruno Levesque

The new year comes with three main new features on the tax front. These concern property tax, income tax and the value sharing premium (PPV).

Limited property tax increase

After a 7% increase in the price of the property tax which concerned around 90% of French owners in 2023, the next revaluation of the latter will be limited to 3.9% in 2024 in the majority of municipalities in France. 

Please note: this does not mean that all property taxes increase uniformly. If your city or intermunicipality does not change its tax rate, then your property tax will increase by almost 4%.

Increase in income tax scales

The income tax scales also follow inflation and will increase for each threshold by around 4.8% this year according to Bercy against + 5 .4% in 2023.

This increase results in a change in the threshold for the first tranche from 10,777 to 11,294 euros. The portion of your income taxed at 0% is therefore greater. With the increase in thresholds, your tax falls if your salaries, pensions or other resources do not increase.

End of tax exemption for the value sharing bonus

Since Monday, January 1, the value sharing bonus (PPV), also called the Macron bonus, is no longer exceptional and becomes entirely sustainable.  It fits alongside participation and profit-sharing in the profit-sharing mechanisms in your company.

You can choose to allocate your PPV to an employee savings plan within your company. One option is particularly interesting which will allow you to avoid income tax.

Note that it will remain completely tax-exempt until 2026 for employees of small businesses (less than 50 employees) if their remuneration is less than 3 times the minimum wage, specifies the site Moneyvox.