Politics · France · 1 hr ago
France’s 2027 budget could change taxes on pensions, donations and severance pay
France’s Parliament is debating the draft 2027 budget, presented by the government on September 30.
The proposals could still change during debate, and some may not be adopted.
Income tax brackets would rise by 2.1% with inflation, helping prevent people from paying more tax just because their income rises with prices.
The draft would also lower the cap on the 10% income tax allowance for retirees from €4,439 to €3,000, but households with less than €30,000 in pension income would be excluded.
A six-month window would offer tax breaks on some cash gifts made from January 1 to June 30, 2027, including a higher exemption limit and a 6% tax rate in some cases.
The proposals also include a single €48,060 exemption cap for severance payments.
The measures are not final and depend on Parliament’s debate.
France’s draft 2027 budget could change tax rules for pensioners, severance payments and cash donations.
The government presented the draft on 30 September, and parliamentary discussions began on 7 October.
A proposed cut to the pension tax allowance could raise €1.4 billion, while households reporting less than €30,000 in pension income would not be affected.
The draft would also set a single exemption cap for severance payments and temporarily raise the tax-free limit for some cash gifts.
The measures could change during parliamentary debate.
- Who
- The French government and members of Parliament are considering the draft budget; the proposed tax changes affect taxpayers, pensioners and people making or receiving donations.
- What
- France’s 2027 budget could change tax rules for pensions, severance payments and donations.
- When
- The government presented the draft on 30 September 2026; parliamentary discussions began on 7 October.
- Where
- France, including the National Assembly.
- Why
- Not stated
This story does not have two clearly opposing sides.
The government presented its draft 2027 budget to the Council of Ministers.
Discussions on the draft began at the National Assembly.
Le Monde published its report on possible tax changes in the draft budget.
- Pension allowance proposal
- Cut the 10% allowance ceiling from €4,439 to €3,000
- Potential revenue
- €1.4 billion from the proposed pension allowance change
- Pension income exemption
- Households reporting less than €30,000 in pensions would not be affected
- Severance exemption cap
- One cap equal to the annual social security ceiling, €48,060 in 2026
- Cash donations window
- 1 January–30 June 2027
- Proposed donation tax rate
- 6% on eligible gifts up to €100,000 per donor and recipient
What people are saying
During the discussion, the budget draft risks being profoundly modified, as happened in previous years.
Sources
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