French taxpayers are searching for answers after the government unveiled proposed changes to the country's income tax system for 2027.
Under the draft 2027 budget, income tax brackets would be increased by 2.1%, reflecting expected inflation excluding tobacco.
The adjustment matters because without it, workers receiving salary increases designed merely to compensate for inflation could move into higher tax brackets and face a larger tax bill despite seeing little improvement in their real purchasing power.
Le Monde reports that the government has decided against freezing income tax thresholds and instead proposes adjusting them for inflation from January 1, 2027.
For many households, that means the income level at which each tax rate begins would increase.
Someone whose income rises by less than or roughly in line with inflation could therefore pay slightly less tax than they would under an unchanged tax scale.
The measure comes as France attempts to repair its strained public finances.
The government's draft budget contains around €43 billion in measures aimed at improving the country's finances, while targeting a public deficit of 5% of GDP in 2027.
But the wider tax picture is more complicated.
Le Monde reports that compulsory levies are projected to reach 44.2% of GDP, compared with 43.9% in 2026. The government also plans changes affecting tax breaks, pensions, housing assistance and other areas.
Higher earners could face additional pressure. The government proposes extending the special contribution that effectively establishes a minimum 20% tax rate for taxpayers earning more than €250,000 annually.
Retirees could also be affected separately. The draft proposes lowering the ceiling on the 10% tax allowance available to pensioners from €4,439 to €3,000.
The proposals are not yet final.
France's 2027 budget still has to pass through Parliament, where lawmakers can amend or reject individual measures before the legislation is adopted. Parliamentary examination is scheduled to begin in October.
For millions of French taxpayers, however, the proposed 2.1% adjustment to income tax brackets is now one of the most important numbers to watch when calculating what they could owe in 2027.Category: Business
