when will your withholding tax rate change?

Like most taxpayers who have declared their income online, you have already received your tax notice in your private space on www.impots.gouv.

This declaration allowed the tax authorities to update your withholding tax rate. This new rate will automatically replace the one that applies today to your wages, retirement pensions, unemployment benefits, etc. from next September. Unless you intervene, it will apply until August 2023. You do not have to take any particular steps. The tax authorities are responsible for directly transmitting your updated rate to the various third-party payers: employers, pension fund, Pôle emploi, etc.

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The only exception to this rule: if, apart from your tax return, you have updated your withholding tax rate or reported a change in your family situation since the beginning of the year – marriage, civil solidarity pact (pacs), divorce… – your current rate of deduction will remain valid until December 31, 2022. The “new” rate, taken from your tax return, will only apply from December 1, 2022.^er January 2023.

Individualized rates

For the record, this “new” rate has been calculated on the basis of your family situation, your expenses and your income for 2021. If you are married or in a PACS, it is the same rate, calculated on the basis of the income of the couple, which applies by default to each of the spouses or PACS partners unless you have opted for individualized rates at the end of your declaration.

This option can also be exercised at any time of the year, by any member of the couple and not only by the one who took care of the tax return. Whether exercised by one or the other, it applies to the couple.

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This option is advantageous for the person with the lowest income when there is a significant income gap between the two members of the couple. Each of the spouses or partners is then assigned a different rate from the other: lower than the common rate for the one with the lowest income and higher for the one with the highest income.

Similarly, if your income (or your expenses) has decreased or increased significantly in 2022 compared to 2021, it is still possible to request that your rate be changed. You can also request the cancellation of a deposit if you have been receiving property income until now and you have definitely stopped renting the property that was earning you rent.

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