Adjustment to the Withholding Tax Rate: What You Need to Know for September

The tax authorities will adjust your withholding tax rate on September 1 based on the income you reported last spring. This adjustment may affect your pay.

The adjustment to your withholding tax rate in September may have a significant impact on your paycheck. To avoid any unpleasant surprises, we recommend that you check your rate and, if necessary, adjust it online.
 

Keep an eye on how your salary changes in September
This is because one of the two automatic adjustments to the withholding tax rate (PAS) takes place on September 1, with the other occurring on January 1. Your salary may therefore change—either up or down—depending on the income you reported last spring.
Impact of 2023 income on your withholding tax rate
 

If your income increased significantly in 2023, your tax withholding rate may go up—and vice versa. Your base salary will not change, but the taxes withheld from that salary will, and this will affect the amount you receive at the end of the month.
 

How can you adjust your withholding tax yourself?
To avoid any unpleasant surprises, you can plan ahead. You can adjust your tax rate yourself by logging into your personal account on the website www.impots.gouv.fr and going to the “Manage My Withholding Tax” section. This way, you can check your tax rate and make sure it still matches your 2024 income.
 

Increasing or Decreasing Your Withholding Rate
If you wish to increase your withholding rate—particularly to avoid having to pay additional taxes in the fall of 2025—no conditions apply. However, if you wish to decrease it so that it better reflects your current income, the adjustment must result in a difference of at least 5% between the projected tax and the new estimated amount.
 

Approval and Implementation of the New Tax Rate
Once you have completed this online process, the tax authorities will approve your new tax rate and forward it to your employer, who will then have up to two months to apply it.