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Income tax
Income tax: every lever, ranked by what it really gives back.
A deduction is worth your tax bracket, a reduction is worth the same for everyone, and most reductions share a ceiling of €10,000 a year. Choosing in the right order often does more than choosing the right product.
Three mechanisms
Deduction, reduction, outside the ceiling: what changes everything.
It lowers taxable income: €10,000 deducted gives back €4,100 in a 41% bracket, €1,100 in an 11% bracket. The PER and property deficit are deductions.
It reduces the tax itself, by the same amount whatever your bracket. Most fall within the €10,000 ceiling : beyond it, they are lost.
Historic monuments, Malraux, property deficit, PER, charitable gifts: they come on top of the €10,000. This is what makes the difference for high tax bills.
The levers for 2026
What each one gives back, and whether it falls within the ceiling.
| Lever | What it gives back | Tax-break ceiling |
|---|---|---|
| Individual PER | Your bracket × the contribution, up to €37,680 deducted for an employee | Outside the ceiling |
| Property deficit | Works deducted from total income, €10,700 a year, €21,400 for energy renovation | Outside the ceiling |
| Jeanbrun scheme | Depreciation of 3.5% to 5.5% a year on 80% of the price, €8,000 to €12,000 a year | A deduction from rents, not a reduction |
| Historic monuments | Costs and works deducted from total income, with no ceiling | Outside the ceiling |
| Malraux | 22% or 30% of the works, counted up to €400,000 over 4 years | Outside the ceiling |
| SOFICA | 30% to 48% of the contribution, up to €18,000 and 25% of income | Ceiling raised to €18,000 |
| SME equity, FCPI-JEI, FIP Corse and overseas | 18% direct, 30% for young innovative companies (JEI) and FIP Corse or overseas | Within the ceiling, except for the JEI reduction |
| Home employment | 50% of expenses, counted up to €12,000 a year (Article 199 sexdecies) | Within the ceiling |
| Charitable gifts | 66% of the gift, up to 20% of taxable income (Article 200) | Outside the ceiling |
The Jeanbrun scheme covers homes bought from 21 February 2026 to 31 December 2028 and let unfurnished for 9 years; for older properties, works must reach 30% of the price.
Depending on your bracket
The order in which we look at them.
A deduction gives back little. Reductions are worth as much to you as to a household taxed at 45%: home employment, charitable gifts, and assurance-vie to save without locking money away.
The PER first, up to your ceiling, then property deficit or the Jeanbrun scheme if you invest in rental property.
PER up to the ceiling, then the schemes outside the ceiling : historic monuments, Malraux, property deficit. SOFICA and overseas investment top up to €18,000, and a company subject to corporation tax holds the income you do not use.
Frequently asked questions
What clients ask us.
What happens to a reduction above the €10,000 ceiling?
The excess is lost, save for exceptions provided by law. That is why we first add up the reductions you already have (home employment, childcare) before adding more (Article 200-0 A of the French Tax Code).
When should you act?
Before 31 December: a PER contribution, a gift, a subscription or works paid during the year reduce the tax paid the following year. A January payment counts for the year after.
Does withholding at source change the timing?
For recurring reductions (home employment, gifts, childcare costs), a 60% advance is paid in mid-January, based on the previous year. The balance comes in the summer, with the tax notice.
Does the Pinel scheme still exist?
No: it ended on 31 December 2024. The Jeanbrun scheme has replaced it since the 2026 Finance Act of 19 February 2026, with depreciation set against rents instead of a tax reduction.
