Increased Tax Benefits for Seniors and People with Disabilities

In 2024, tax benefits for seniors and people with disabilities with modest incomes will be increased, as will the income threshold required to qualify for them. This increase is expected to result in a reduction in, or even an exemption from, taxes for certain taxpayers.

Individuals who are 65 or older as of December 31, 2023, are eligible for a tax deduction on their income from the previous year (2024 taxes). Year after year, the amount of this tax benefit and the income threshold required to qualify for it are adjusted in proportion to the upper limit of the first bracket of the income tax scale, which is 4.8% in 2024.

New ranges to consider

Thus, for the 2024 tax year (2023 taxes), if the total net income does not exceed €17,200, the tax deduction is €2,746 for taxpayers over the age of sixty-five or those with a disability, whether they are single or part of a married couple filing a joint return.

If total net income is between €17,200 and €27,670, the tax deduction is €1,373 for taxpayers over the age of sixty-five.

For taxable income exceeding €27,670, the tax deduction is eliminated.

The amount of the deduction is doubled for a married couple or civil union partners where both partners meet the age requirements. However, each person is entitled to only one deduction, even if they meet both criteria.

The tax authority automatically applies the tax credit to which the household is entitled, thereby eliminating the need for any additional action on the part of the taxpayer.

Similar rules for people with disabilities

The special tax deduction for people over 65 also applies to those who, regardless of their age, receive a military disability pension for a disability of at least 40 percent, a disability pension resulting from a work-related accident of at least 40 percent, or who hold a “mobility and inclusion” card marked “disability” for a disability of at least 80 percent.

People with disabilities are eligible for the tax deduction when their income is taxed for the year in which they obtained their disability card from the city hall in their place of residence. If the deduction is not approved during the review of the following year’s tax return, the initial tax assessment must be adjusted.

Disability benefits are subject to tax and must be reported on your tax return.

A reduction in, or even an exemption from, taxes for some people

Thanks to this 4.8% increase, some retirees who were previously excluded from the tax deduction may now be eligible for it this year. Taxpayers with modest incomes should generally see a reduction in their tax liability, and for some, their tax bill may even be eliminated.