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Income Tax - Tax Calculation

Verified 07 April 2022 - Legal and Administrative Information Directorate (Prime Minister)

Gross tax is calculated using a progressive scale. The amount obtained is then corrected (cap, haircut) to determine the net tax payable. To calculate your income tax, you can use the online simulator. You can also do it yourself, by steps.

To calculate your tax amount, you can use the calculation simulator:

Calculator for 2022: 2021 income tax

You can also view online brochure on tax return and tax return explanatory note. These documents contain a record to calculate the amount of tax.

You must list your income by category and add it up, including:

Warning  

you have to apply some discounts on such income, in particular business.

Example :

A single person who has no income other than his salary and declares €30,000 of taxable net salary. If he chooses the standard deduction of professional expenses 10%, its overall gross income will be:

€30,000 -€30,000 x 10%) = €27,000.

Overall net income = total gross income - deductible expenses

The deductible expenses include:

Taxable net income = overall net income - special allowances

These discounts special care for the elderly and disabled.

You may also be concerned if you connect your child to your tax home married or family.

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You are 65 or older

You must be 65 or older by December 31, 2021:

  • If your income is less than €15,560, you are entitled to a €2,484.
  • If your income is between €15,560 and €25,040, you are entitled to a €1,242.

This allowance may be doubled if 2 members of the household meet the age requirement.

This allowance cannot be combined with the special allowance for the disabled.

You are invalid

  • If your income is less than €15,560, you are entitled to a €2,484.
  • If your income is between €15,560 and €25,040, you are entitled to a €1,242.

This allowance cannot be combined with the special allowance for the elderly.

You attach your child who is married or in charge

You receive a discount of €6,042 if you connect to your tax home:

  • your child who is married or a partner of a Civil partnership, with or without children
  • or your responsible child.

Your child must meet one of the following conditions:

  • Under 21
  • To be under 25 years of age if studying
  • Perform national service regardless of age

The determination of gross tax is carried out in several successive stages.

Determine the number of tax shares

The number of shares you are entitled to depends on your situation:

It also takes into account your dependants:

Calculate Family Quotient

Family Quotation = taxable net income / number of tax shares in the household

Example :

A couple is entitled to 2 shares. If its taxable net income is €30,000, its family quotient will be: €30,000 / 2 = €15 000.

Apply Schedule

The scale is applied to the family quotient obtained.

This schedule consists of several tranches.

Income tax: 2022 tax brackets and rates

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Income tax: 2022 tax brackets and rates - plus de détails dans le texte suivant l’infographie
Crédits: Direction de l'information légale et administrativeInfographie - Income tax: 2022 tax brackets and rates

The 2022 income tax for 2021 is calculated on the basis of tax rate brackets (0-45%).

For a share of the family quotient:

- Up to €10,225: 0% tax rate

- From €10,226 to €26,070: 11% tax rate

- From €26,071 to €74,545: 30% tax rate

- From €74,546 to €160,336: 41% tax rate

- More than €160,336: 45% tax rate

Example of a single:

A single person (1 share) whose net taxable annual income is € 30,000, the calculation of his tax is as follows:

- Up to €10,225 (tranche 1): €0

- From €10,226 to €26,070 (tranche 2): €1,742.95

- From €26,071 to €30,000 (tranche 3): €1,179

Total amount of tax: €2,921.95, or 9.74% of its taxable net income.

2021 Revenue Progressive Scale

Slices

Tax rate to be applied on the corresponding tranche

(or marginal tax bracket)

Up to €10,225

0

From €10,226 to  €26,070

11%

From  €26,071 to  €74,545

30%

From  €74,546 to €160,336

41%

More than €160,336

45%

Example :

For single (single unit household) with taxable net income of €30,000, without any reduction or deduction.

Its family quotient is €30,000.

For the calculation of his tax:

  • Up to €10,225 : 0
  • From €10,226 to  €26,070 : (€26,070 - €10,225) 11% = €15,845 × 11% = €1,742.95
  • From €26,071 to €30,000 : (€30,000 - €26,070) x 30% = €3,930 × 30% = €1,179

The marginal tax rate (MTR) for this single person is 30%, because its family quotient puts it in this bracket. But not all income is taxed on 30%.

Its gross tax is: €0 + €1,742.95 + €1,179 = €2,921.95.

This tax must then be multiplied by the number of shares in the tax household. In this example, it will be multiplied by 1 since it is a single.

Its gross tax will therefore be €2,921.95.

This taxpayer's marginal tax rate (MTR) is 30%, because its family quotient puts it in this bracket. But not all income is taxed on 30%.

Example :

For married or married couple without children (2 unit household) with taxable net income of €60,000.

Its family quotient is €60,000 : 2 = €30,000.

For the calculation of his tax:

  • Up to €10,225 : 0
  • From €10,226 to   €26,070 : (€26,070 - €10,225) 11% = €15,845 × 11% = €1,742.95
  • From €26,071 to €30,000 : (€30,000 - €26,070) x 30% = €3,930 × 30% = €1,179

The gross tax of each member of the couple is: €0 + €1,742.95 + €1,179 = €2,921.95.

This tax must then be multiplied by the number of shares in the tax household. In this example, it will be multiplied by 2 since it is a married or married couple.

The couple will therefore have to pay a €2,921.95 × 2either €5,843.90.

The marginal tax rate (MTR) for this couple is 30%, because its family quotient puts it in this bracket. But not all income is taxed on 30%.

Example :

For a married or married couple with 2 children (3 units, 1 share for each parent and 1 half share for each child) with a taxable net income of €60,000.

Its family quotient is €60,000 : 3 = €20,000.

For the calculation of his tax:

  • Up to €10,225 : 0
  • From €10,226 to €20,000 : (€20,000 - €10,225) x 11% = €9,775× 11% = €1,075.25

This tax must then be multiplied by the number of shares in the tax household. In this example, it will be multiplied by 3 since it is a married or married couple with 2 children.

The gross family tax is: €1,075.25 x 3either €3,225.75

The marginal tax rate (MTR) for this family is 11%, because its family quotient puts it in this bracket. But not all income is taxed on 11%.

Example :

For one isolated parent with 2 children (2.5 units, 1 share for the parent, 1 half share for each child and 1 additional half share as a single parent) with a taxable net income of €30,000.

Its family quotient is €30,000 : 2.5 = €12 000.

  • Up to €10,225 : 0
  • From €10,226 to  €12 000 : (€12 000 - €10,225) x 11% = €1,775 x 11% = €195.25

This tax must then be multiplied by the number of shares in the tax household. In this example, it will be multiplied by 2.5 since it is an isolated parent with 2 children.

The gross family tax is: €195.25 x 2.5either €488.12.

The marginal tax rate (MTR) for this family is 11%, because its family quotient puts it in this bracket. But not all income is taxed on 11%.

Attention : the tax benefit is divided by two in the case of alternate residence.

Gross tax can be adjusted in certain situations.

To calculate your net tax, devices are used depending on your situation:

  • Limit the effects of the family quotient
  • Discount (if your income is low)
  • Reductions and tax credits
  • Contribution on high revenues

Limit the effects of the family quotient

The tax reduction related to the family quotient is limited to €1,592 for each additional half share (€796 for each additional quarter share).

In certain specific situations, the tax reduction linked to the family quotient is different, for example:

Discount

The discount will reduce your tax if you are taxable but your income is modest.

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You're single

You receive a discount if the gross amount of your income tax does not exceed €1,746.

The haircut is equal to the difference between €790 and 45,25% the amount of your tax.

Example :

If your gross tax is €1,400 :

€1,400 x 45,25% = €633.50

The haircut is €790 - €633.50 = €156.50. It is deducted from your tax.

The amount of tax after the discount is €1,400 - €156.50 = €1,243.50.

You are a couple subject to common taxation

You receive a discount if the gross amount of your income tax does not exceed €2,888.

The haircut is equal to the difference between €1,307 and 45,25% the amount of your tax.

Example :

If your gross tax is €1,400 :

€1,400 x 45,25% = €633.50

The haircut is €1,307 - €633.50 = €673.50. It is deducted from your tax.

The amount of tax after the discount is €1,400 - €673.50 = €726.50.

Reductions and tax credits

The reductions and tax credits to which you are entitled must be deducted from your tax.

For example donation discount organisations of general interest.

FYI  

tax is not payable when the amount is less than €61. This is the amount after the discount and tax reductions, but before any tax credits are applied.

Outstanding contribution on high incomes

In case of high income, exceptional contribution can be added to income tax.

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