Income tax, housing tax, tax credit, malus: what's new 2020

With regard to income tax, the Act provides in particular for the reduction of the 2^e tax bracket of 14% to 11%. In parallel, the entry threshold into the 3^e slice changes to €25,659 (against €27,794 before) while the one in the 4th^e slice is set to €73,369 (against €74,517).

It fixes the amount of the contribution to public broadcasting (ex TV license fee) at €138 in mainland France.

It also endorses the complete elimination of the principal residence tax for 80% outbreaks in 2020 (other outbreaks in 2023).

Finally, it confirms the transformation of the Energy Transition Tax Credit (ISCED) into a flat-rate energy renovation bonus to be paid in the year of construction and better targeted at the poorest households.

As for the scale of the motor vehicle malus, it is hardened for the most polluting vehicles, in particular SUVs, the threshold for triggering the malus increasing from 117 gCO2/km to 110 gCO2/km with a maximum amount of malus now fixed at €20,000.