Withholding Tax: Tax Harmonization for Couples

As of September 2025, married couples and civil union partners no longer share the same withholding tax rate. Each partner is now subject to an individualized rate, calculated based on their own income. While this may appear to be a technical reform, it addresses a long-standing inequality and primarily benefits women.
 

A Reform Long Awaited Since the Introduction of Pay-As-You-Earn Tax
When the pay-as-you-earn tax system was introduced in 2019, the decision was made to apply a single tax rate by default to both spouses. This mechanism, which was easy for the government to administer, had an unintended consequence, however: the lower-earning spouse—most often a woman—was subject to a high tax rate, identical to that of the higher-earning spouse. As a result, some women received a reduced net salary that was disproportionate to their actual income.
 

The September 2025 reform puts an end to this situation by systematically applying individual tax rates. From now on, each person will be taxed based on their own income, without having to wait for the annual tax adjustment. This change is intended to correct a bias that could discourage people from returning to work or accepting overtime.
 

A Tangible Benefit for Thousands of Households
The Ministry of the Economy estimates that hundreds of thousands of households will see an improvement in their monthly cash flow. Women, who are more likely to hold part-time or low-wage jobs, will be the primary beneficiaries.
 

For example, an employee earning €1,800 per month and living with a spouse earning €4,000 could previously have had a 12% tax rate applied, the same as that for the couple. With individualization, her rate drops to 5%, representing an immediate savings of more than €120 on her pay stub. In total, the savings could amount to several hundred euros per year for some households, without changing the couple’s total tax liability.
 

A symbol of professional equality
Beyond improving cash flow, this measure sends a message in support of financial independence. Individualizing the tax rate allows each person to see their net income more clearly, without being affected by a tax burden calculated based on the couple’s combined income.
 

Compared to other countries, France takes a unique stance on this issue. In Germany, the system of spousal income splitting continues to penalize the secondary spouse, who is often a woman. By opting for individual taxation, France reduces this bias and aligns with the principle of workplace equality.
 

The reform does not alter the structure of the tax, which continues to be calculated on a household basis, but it does change the timing of the tax burden. This is a technical adjustment, but one that marks a turning point in how the tax is collected and its immediate impact on household budgets.