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France Switches to Individualized Tax Withholding for Couples as 2024 Balances Begin Debiting

The new setup reallocates monthly deductions between partners without changing the household’s total income tax.

Overview

  • Since September 1, married and pacsed taxpayers receive a default individualized withholding rate, replacing the former household rate and showing up on September payslips.
  • The reform leaves annual tax unchanged but typically lowers the deduction for the lower earner and raises it for the higher earner, a shift often benefiting women given INSEE’s reported pay gap.
  • Couples who prefer a shared rate can restore it via the “Gérer mon prélèvement à la source” section on impots.gouv.fr, and DGFiP reports nearly 2 million households have already opted back.
  • From Thursday, September 25, the tax office is automatically collecting 2024 balances: one debit if the amount is €300 or less, or four installments on Sept 25, Oct 27, Nov 27 and Dec 29 if above €300.
  • The Finance Ministry says about 13.1 million households owe a 2024 balance, with an average payment of €1,901.