In 2020, 1096 billion euros were declared for income tax. The 45% of liable taxpayers paid 76.9 billion for an average of 4,520 euros.
What does income tax yield to the state? How many French people are taxable and how much do they pay? The General Directorate of Public Finances (DgFip) is compiling this week a complete assessment of the 2020 tax on income received in 2019, the first year of application of the withholding tax system. With some lessons to be learned.
> 39.3 million
This is the number of tax households identified in 2019, i.e. 2% more than a year earlier. As a reminder, a tax household refers to all the people registered on the same income tax return.
Among these 39 million households, 17.6 million (45%) had to pay a tax that year for an average amount of 4,520 euros. Conversely, therefore, 21.7 million households were not taxable and 3.4 million of them were even able to benefit from a tax refund in 2020: 828 euros on average.
Note that these figures do not take into account the tax reduction of 5 billion euros which resulted in particular in a reduction of the first tranche from 14 to 11%, which only took effect. from 2020.
> 76.9 billion euros
In 2020, the 2019 income tax brought in 76.9 billion euros to the state. This is its second tax revenue behind VAT. While these revenues are down slightly (-1%) compared to 2018, they are nevertheless significantly higher than the amounts collected in previous years (69.1 billion in 2015, 70.3 billion in 2016, 71.5 billion in 2017) .
On average since 2010, income tax has generated 5% more revenue each year. An increase that the DgFip justifies by wage inflation, the increase in the number of tax households (+ 0.7% per year on average) as well as by “the implementation of several tax changes” and in particular “the creation of a tax bracket of 45%, the introduction of the exceptional contribution on high incomes, or the lowering of the family quotient “which resulted in increased revenue.
> 1096 billion euros
Last year, the total amount of income declared by taxpayers for the year 2019 and declared reached 1096 billion euros (+ 1.4% over one year). Wages and salaries alone accounted for nearly 60% of this sum (656.5 billion euros, + 0.9%) while retirement pensions and annuities still accounted for 27% of the total (296 billion euros, + 2.5%).
Then come income from movable capital and capital gains (4.1%), non-commercial profits (3.5%), property income (3.3%), industrial and commercial profits (1.6% ) and agricultural profits (0.6%).
> 14,000 euros
This is the average amount of income tax paid by the top 10% of tax households. This corresponds to 16% of their reference tax income, against 21% for the 1% of the richest households who pay an average of 60,000 euros. In total, the 10% of the wealthiest tax households pay 72% of the total tax collected.
Conversely, the 10% of the lowest tax households are refunded under income tax 30 euros on average. The latter also benefit from reductions or tax credits of just over 40 euros on average, against 2,000 euros for the 10% of the wealthiest households.
> 1341 euros
11.6 million tax households, or nearly a third of the whole, benefited in 2019 from a reduction or a tax credit, allowing them to reduce their tax by 1341 euros on average.
8.13 billion euros in tax credits were granted that year, including nearly 5 billion for the employment of an employee at home (1178 euros per household on average), 1.2 billion for childcare costs outside the home (credit of 671 euros on average) and 1.1 billion for work related to the energy transition (1,252 euros on average).
Regarding tax reductions (7.2 billion euros), the most important amount granted concerned the taxation of foreign source income (1.9 billion euros) which allows people declaring to the foreigner to avoid double taxation. 5 million French people also made a donation, which resulted in 1.6 billion euros in tax cuts.