2018 Income tax Law - For households

By Arnaud Campion

Bercy has just presented the finance bill for 2018, here is the essential information to remember for households

Cut in inhabitation Tax

First stage of the abolition of the inhabitation tax for households with a tax income of less than €27,000 (€43,000 for a couple) with a reduction of one third in 2018.

Removal of contributions and increase of the CSG

Sickness and unemployment contributions will be replaced by a 1.7% increase in the CSG, resulting in a 1.4% gain for employees and the self-employed.

End of the Wealth Tax

The Wealth Tax  is abolished and replaced by the IFI, a tax on real estate wealth based only on real estate. The scale and rates remain the same, including the 30% allowance on the principal residence.

Flat Tax on financial income

Return of the flat-rate taxation of financial income (dividends, interest, capital gains on securities) at a rate of 30% including taxes and social security charges.

This also applies to life insurance contracts over €150. See our detailed article.

Pinel Law refocused and extended for 4 years

It will still be possible to reduce taxes for rental investment in new buildings, but the eligible areas are reduced: Paris, the inner suburbs, part of the outer suburbs, the PACA region, the Swiss border and certain large conurbations.

Fuel tax increases

Prices at the pump will skyrocket over the next few years, but from 1 January 2018, add 7.6 cents for diesel and 3.9 cents for petrol.

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