the LEVY on THE SOURCE. Conducted in the spring of each year, the income tax return may result in an adjustment of your rate of tax at source. For whom and when ? It makes the point.

Summary New rate Change rate rate Calculation Calculation of the tax employer property Income tax Credit

[updated June 08, 2020 at 12: 20 pm] You were convinced that the withholding at the source allowed you to escape the income tax return ? The latter is still mandatory. It allows you to inform the inland revenue of the income of the past year, and as well tailor your rate. The deadline to intervene 4 June (departments 01 to 19), the 8 June (departments 20 to 54), 11 June (departments 55 976) and 12 June (for those who still use the paper form). As a reminder, the tax households have the possibility to modulate their rate of deduction at source, even before the return period, in the case of the evolution of income, increase or decrease, or change (marriage, civil partnership, birth). The withholding at the source, therefore, allows to adapt to your situation, especially in times of crisis like the one we are currently living with the virus Covid-19. will Find in our article all the information on the operation of withholding at the source.

Soon a new rate ? For whom and when ?

If you have already used the service of electronic filing, you have no doubt noticed at the end of the procedure that the tax administration is announcing or not a rate change. If this is the case, it is the result of a the evolution of your income, that you have declared in the spring, in 2019 compared to 2018. Let’s say that you have changed jobs during the past year, and that this is reflected by an increase of your salary.

Mechanically, you have a priori declared more than last year. As a result, your rate of levy at source will be also increased. This new rate, if it is confirmed, is intended to be put in place September 2020 , once the irs has verified the information you have submitted. There is, in reality, no surprise, since this mechanism has already been applied last year.

How to change his rate ?

a direct Result of the health crisis of sars coronavirus, many French will see their income decline in the coming months. If you are in this case of figure, employed or self-employed in note that you can already inform the tax administration, in order to modulate your blood . Appointment in your personal space on the site bring your tax id and your password. You are logged in and see your dashboard ? Click on the “Manage my collection at the source” and then click ” Refresh due to an increase or a decrease in your income “.

In a first time, if you modulate your rate, you will need to specify your family status (children or dependents, etc). You will then need to mention your earnings forecast for the full year 2020 . Attention, keep in mind that in order for the rate change to be effective it is necessary that there is a differential in income of 10%. Contacted by the public finances general Directorate (DGFIP) has indicated that the administration “will be benevolent” in the context of the health crisis, but that there will be no tolerance for those who attempt to defraud the tax authorities.

You are self-employed and pay your tax by instalment ? Please be aware that, like any taxpayer, you can edit your account and your tax rate at the source. “ Any response before the 22nd of the month will be taken into account for the following month “, we can read on the page dedicated to the companies on the website of the tax authorities. You have the option to request a remission of tax, using the dedicated form, available here .

“The tax automatically adapts to income and all taxpayers may change their tax rates to the downside today. As for the independent, they may defer their payments for three months , ” said Gérald Darmanin, minister of the Action and of the public accounts. “I would like to take the opportunity to highlight how the reform of tax at source will help to cushion this crisis.”

How the tax rate at the source is it calculated ?

To determine your rate of deduction at source, the tax authorities shall take into account all of the income that you have earned (wages, income from property, capital gains…). Keep in mind that, if the tax is contemporary of your income, the interest rate, it, is not necessarily so. When it is customized, it is calculated from the income that you have mentioned in your last income tax return and depending on your family situation (the number of people that you have to load for example).

This is the reason why your rates may be changed in the month of September 2019, and will evolve again in September 2020. The rate that has been applied intre January 2019 and August 2019 was based on revenues for the year 2017 , only the information available to the tax authorities. Thanks to the statement of income that you have conducted in the spring of 2019, the tax department was able to proceed to an adjustment in the month of September .

what is the neutral rate ? For whom can it be interesting ?

You are an employee and you do not want your employer informed of your rate of tax at source ? In this case, you can opt for the neutral rate or the rate of non-custom. This rate does not take into account that your compensation and not your family situation. “This option is of interest that if you receive substantial income in addition to your wages”, says the tax administration on its website.

Keep in mind that in most cases, the rate of non-custom is superior to the one which should be applied if it took into account your family situation. “ In the contrary case, you will need to pay every month to the administration an amount equal to the difference between the levy calculated with your rates custom and the one calculated by your employer “, warns the irs. Here is the schedule of the neutral rate that applies from January 1, 2020 :

Base monthly levy

neutral Rate applied

Less than or equal to 1 418 euros


1 418 € 1 472 €


1 472 € 1 567 €


1 567 € 1 673 €


1 673 € 1 787 €

a 2.9%

1 787 € 1 883 €


1 883 € 2 008 euro

the 4.1%

2 008 € 2 376 euros

for 5.3%

2 376 € to 2 € 720

a 7.5%

2 720 € 3 098 €


3 098 € 3 487 €

to 11.9%

3 487 € 4 069 €

of 13.8%

4 069 € 4 878 €

15.8% in

4 878 euro 6 104 euro

17.9 percent

6 104 € 7 € 625


7 € 625 10 583 €


10 583 € 14 333 euros


14 333 € 22 500 €


22 500 euro 48 196 euros


from 48 196 euros


How the amount of tax at the source is it calculated ?

beforehand, it is necessary to determine the net taxable income , which corresponds to the net remuneration to which are added the social contributions non-deductible (CSG and CRDS). If you are an employee, you can read on your last payslip. A rate of deduction at source, calculated on the basis of all of your income is applied. As a reminder, you can verify this by visiting the website in your personal space or refer to your payslip if you are employed.

is it possible to simulate collection from the source ?

It is possible to make a simulation of the withholding at the source, through the tool on the website of the income tax, here . You need to mention the amount of your monthly taxable income as well as your rate of tax at source. You will then get the monthly amount in euros of the deduction at source

I employed a nanny, how to apply it to private employers ?

Since January 1, 2020, individuals and employers are subject to withholding at the source. As the precise site of the Urssaf, you’ll have “no extra step to do so.” “As an employer, you represent , as usual, the remuneration of your employee” , explains one. “The Cesu will calculate the amount of tax at the source from the rate transmitted by the tax administration for your employee”.

If you have chosen the service (Cesu)+, as the employer you will be charged the ‘ amount of the net salary on your bank account.” This is the Cesu, which will pay your employee his salary (net of tax) and remit withholding tax at source to the tax authorities. If you have not opted for the service Cesu +, then you pay a net income tax. The Cesu will deduct the amount of the tax due if your bank account. What happens if your employee is not taxable ? In this case, the amount to be paid will not. The monthly statement and the salary slip will specify the amount and, if applicable, the rate of withholding at the source to zero.

How to collection at the source does it work with the income from land ?

taxpayers who have income from land must fulfil their tax in the form of installments, as calculated by the tax administration. They are collected on a monthly or quarterly basis. The tax office states that in the case of high variation in income, these payments may also be updated in the course of année to the request of the taxpayer. The entire procedure is carried out on the site of taxes, in the section “Manage your account”.

change the withholding at the source in the perception of the tax credits ?