The total net income is subject to sliding scale in increments.
1. Divide the total net income by the number of shares of the family quotient .
2. Each slice is applied a tax rate.
3. The amount thus obtained is multiplied by the number of shares.
Example : a married couple without children (2 parts) has a total net income of 100,000 euros. This gives an income per share of 50 000 euros.
This income is taxed per unit per according to the scale below.
Up to 5 963 euros: 0%
of 5964 euros to 11,896 euros: 5.50%
of 11 897 euros to 26,420 euros: 14.00%
of 26 421 euros to 70,830 euros: 30.00%
in excess of 70,830 euros: 41.00%
The rate applied to the top of the income, is the rate “marginal tax”. This is important to assess the impact of certain devices “tax exemption” based on a reduction of taxable income. Example: Mr. Martin, marginally taxed at 40%, has reduced the taxable income of 100 euros. The tax savings will reach 40.00 euros. The gross amount of tax resulting undergone several corrections.
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