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Income Tax - Tax Calculation

Verified 17 April 2023 - Legal and Administrative Information Directorate (Prime Minister)

The gross tax is calculated on the basis of a progressive scale. The resulting amount is then adjusted (cap, discount) to determine the net tax payable. To calculate your income tax, you can use the online simulator. You can also calculate your tax amount yourself, in stages.

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

2023 Simulator: 2022 Income Tax

You can also consult the online tax return brochure and the tax return explanatory note. These documents contain a form for calculating the amount of tax.

Step-by-step approach

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

Warning  

some have to be applied deductions on such income, in particular professional expenses.

Example :

A single person who has no income other than his salary and declares €30,000 of taxable net salary.

If he chooses the lump-sum deduction for professional expenses of 10%, its total gross income shall be:

€30,000 - (€30,000 x 10%) = €27,000.

Overall net income = total gross income - deductible expenses

Deductible expenses include:

Taxable net income = total net income - special allowances

These deductions special provisions apply in particular to the elderly or disabled.

You may also be affected if you attach your child to your tax home married or in charge of the family.

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You are 65 years of age or older

You must be 65 years of age or older on December 31, 2022:

  • If your income is less than €16,410, you are entitled to a reduction of €2,620.
  • If your income is between €16,410 and €26,400, you are entitled to a reduction of €1,310.

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're disabled

  • If your income is less than €16,410, you are entitled to a reduction of €2,620.
  • If your income is between €16,410 and €26,400, you are entitled to a reduction of €1,310.

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

You reunite your child who is married or has a family

You receive a rebate of €6,368 if you belong to your tax household:

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

Your child must meet one of the following conditions:

  • Under 21 years of age
  • Be under 25 years of age if pursuing an education
  • Perform national service regardless of age

The determination of the gross tax takes place in several successive stages.

Determine the number of tax shares

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

It also takes into account your dependants:

Calculate family quotient

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

Example :

A couple is entitled to 2 shares. If his net taxable 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 scale comprises several tranches.

Warning  

the benefit of certain situations is limited, including the one your children are entitled to. It's the family quotient cap.

Income tax: brackets and tax rates in 2023

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Income tax: brackets and tax rates in 2023 - plus de détails dans le texte suivant l’infographie
Crédits: Service Public (DILA)Infographie - Income tax: brackets and tax rates in 2023

Income tax

2023 tax brackets and rates

Your tax is calculated in installments, based on the amount of your income. Each bracket corresponds to a tax rate (from 0 to 45%). If your annual income exceeds that of bracket 1 (€10,777), it will be covered by several successive brackets, as explained in the example.

Slices for 1 share of family quotient:

- Up to €10,777 (bracket 1): 0% tax rate

- From €10,778 to €27,478 (bracket 2): tax rate of 11%

- From €27 479 to €78 570 (bracket 3): 30% tax rate

- From €78,571 to €168,994 (bracket 4): tax rate of 41%

- More than €168 994 (bracket 5): tax rate of 45%

Example of calculation for 1 share of family quotient:

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

- Up to €10,777 (tranche 1): €0

- From €10 778 to €27 478 (tranche 2): €1 837.11

- From €27 479 to €30 000 (tranche 3): €756.60

Total tax: €2,593.71, or 8.64% of his net taxable income.

That is, if you have more than one person in your tax household, the tax calculation takes that into account when determining your number of shares. This is the family quotient. This mechanism has an impact on the amount of your tax. In particular, it reduces the tax burden for families with children.

Tableau - 2022 progressive income scale

Income brackets

Income tax bracket rate

Up to €10,777

0%

From €10,778 to  €27,478

11%

From  €27,479 to  €78,570

30%

From  €78,571 to €168,994

41%

More than €168,994

45%

Here are some examples of the calculations:

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For a single man

For a unmarried (household of a single share) whose net taxable income is €30,000, without any reduction or deduction.

His family quotient is €30,000.

For the calculation of his tax:

  • Up to €10,777 : 0%
  • From €10,778 to  €27,478 : (€27,478 - €10,777) × 11% = €16,701 × 11% = €1,837.11
  • From €27,479 to €30,000 : (€30,000 - €27,478) x 30% = €2,522 × 30% = €756.60

Its gross tax is: €0 + €1,837.11 + €756.60 = €2,593.71.

The marginal tax rate (BIT) of this taxpayer is 30%, because its family quotient puts it in that range. But not all his income is taxed to 30%.

For a married couple or a past couple without children

For a married couple or former couple without children (household of 2 units) having received taxable net income of €60,000.

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

For the calculation of his tax:

  • Up to €10,777 : 0%
  • From €10,778 to   €27,478 : (€27,478 - €10,777) × 11% = €16,701 × 11% = €1,837.11
  • From €27,479 to €30,000 : (€30,000 - €27,478) x 30% = €2,522 × 30% = €756.60

The gross tax for each member of the couple is: €0 + €1,837.11 + €756.60 = €2,593.71.

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 a former couple.

The couple will therefore have to pay a tax of €2,593.71 × 2, or €5,187.42.

The marginal tax rate (IMR.) for this couple is 30%, because its family quotient puts it in that range. But not all his income is taxed to 30%.

For a married or spent couple with 2 children

For a married or former couple with 2 children (household of 3 parts, 1 part for each parent and 1 half part for each child) having received a net taxable income of €60,000.

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

For the calculation of his tax:

  • Up to €10,777 : 0%
  • From €10,778 to €20,000 : (€20,000 - €10,777) x 11% = €9,223× 11% = €1,014.53

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 past couple with 2 children.

The gross tax of the family is: €1,014.53 x 3, or €3,043.59

The marginal tax rate (BIT) for this family is 11%, because its family quotient puts it in that range. But not all his income is taxed to 11%.

For a single parent with 2 children

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

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

  • Up to €10,777 : 0%
  • From €10,778 to  €12,000 : (€12,000 - €10,777) x 11% = €1,223 x 11% = €134.53

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 a lone parent with 2 children.

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

The gross tax of the family is: €134.53 x 2.5, or €336.32.

The marginal tax rate (BIT) for this family is 11%, because its family quotient puts it in that range. But not all his income is taxed to 11%.

The gross tax can be adjusted in certain situations.

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

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

Capping the effects of the family quotient

The family quotient tax reduction is limited to €1,678 for each additional half-share (€839 for each additional quarter share).

In some specific situations, the tax reduction related to the family quotient is different, for example:

Beyond the limit that corresponds to your situation, your additional half-shares (or shares) are no longer taken into account to calculate your tax amount.

Discount

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

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You're single

You receive a discount if your gross income tax does not exceed €1,841.

The haircut shall be equal to the difference between €833 and 45.25% the amount of your tax.

Example :

If your gross tax is €1,400 :

€1,400 x 45.25% = €633.50

The discount is €833 - €633.50 = €199.50.

It is deducted from your tax.

The amount of tax after discount is €1,400 - €199.50 = €1,200.50.

You are a couple subject to common taxation

You receive a discount if your gross income tax does not exceed €3,045.

The haircut shall be equal to the difference between €1,378 and 45.25% the amount of your tax.

Example :

If your gross tax is €1,400 :

€1,400 x 45.25% = €633.50

The discount is €1,378 - €633.50 = €744.50.

It is deducted from your tax.

The amount of tax after discount is €1,400 - €744.50 = €655.50.

Reductions and tax credits

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

For example, the donation rebate bodies of general interest.

FYI  

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

Exceptional contribution on high incomes

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

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