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What is the overall cap on tax niches?


A woman examines her taxes and the benefits she can gain

The overall ceiling on tax benefits (tax niches) limits the amount of tax benefits you can claim each year when calculating your income tax.


General case

For the 2023 taxation of your 2022 income, the total of your tax benefits cannot reduce the amount of tax due by more than €10,000.


Example

For a tax household: a group of people filing a single tax return (e.g. husband, wife and dependent children) who benefit from a €6,000 tax credit for employment in the home and a €5,000 tax reduction for Pinel rental investment.

6 000 € + 5 000 € = 11 000 €. The amount exceeds the overall ceiling.

Your tax advantage is therefore limited to €10,000.


What you need to know

The ceiling is the same for all tax households, whether you are a single person or a couple, with or without dependents.


The tax benefits concerned can take one of the following forms:

  • Deduction of your taxable income

  • Reduction of tax

  • Crédit d'impôt


The overall ceiling applies to tax benefits granted in return for a service or investment.


The overall ceiling does not apply to the following tax benefits:

  • Avantages linked to your personal situation

  • Avantages linked to the pursuit of an objective of general interest without consideration


Table - Overall ceiling according to tax benefits (non-exhaustive list)

Table - Overall ceiling according to tax benefits (non-exhaustive list)

Please note

For a full list of tax benefits covered by the ceiling, please consult the practical brochure on income tax: here. This document also provides information on the application and calculation of the ceiling.


Overseas France investment

For the 2023 taxation of your 2022 income, if you have also made investments in overseas France, the total of your tax benefits cannot reduce the amount of tax due by more than €18,000.


What you need to know  

The ceiling is the same for all tax households, whether you're a single person or a couple, with or without dependants.

To find out more, don't hesitate to consult your preferred advisor, who will be happy to run a tax simulation with you.

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