The withholding tax system, introduced in France in 2019, has simplified the collection of income tax. However, while it has proven very practical, the system has also highlighted tax inequalities within married or civil partnership couples, particularly in the event of a significant difference between the salaries of the two spouses. From 1,7497;ʳ In September 2025, a major reform will correct this injustice.
If you are a couple, things change
Currently, the withholding tax rate is calculated on the entire income of the tax household. This method disadvantages the spouse with the lower income, who is subject to a higher tax rate than they would have as a single person. Conversely, the higher-earning spouse benefits from a reduction in their tax rate. Unsurprisingly, the situation is particularly unfavorable to women, who represent 78% of second contributors in couples, and whose salaries are on average 24% lower than those of men in equal positions in the private sector.
The new rule, which will be introduced in September 2025, aims to reestablish a form of fairness. With the individualized default rate, each member of the couple will be taxed only on their personal income, without taking into account their spouse's income.
What are the practical implications?
This reform will allow the spouse with the lower income to keep a higher net salary thanks to a reduced tax rate. For example, a woman earning less than her spouse will see her net salary increase compared to the current system. Conversely, the higher-paid spouse will assume a higher tax burden proportional to their income.
Note that this measure will have no impact on the overall amount of tax paid by the couple. It redistributes the tax burden more fairly between partners. Couples who wish to maintain a joint rate will still be able to request it via their personal space on impots.gouv.fr. According to a study cited by MP Marie-Pierre Rixain, individualizing the rate could increase the rate of participation of women in the labor market by 0.6 points, or nearly 80,000 additional jobs.
This reform is part of the Interministerial Plan for Equality between Women and Men (2023-2027) and responds to criticisms made by several experts on the gendered impact tax systems based on joint taxation. The automatic application of the individualized rate from September 2025 will mark an important step towards a fairer tax adapted to the economic realities of French tax households.
0 Comments