Withholding tax: watch out for rate changes

Withholding tax: watch out for rate changes

Your tax rate may change. This is a readjustment. The tax authorities will take into account the exceptional income of 2018 using the spring 2019 declarations.

Withholding tax: watch out for rate changes

Please note, your rate of withholding tax may change: the tax authorities are updating it. Until now, the rate was calculated on the basis of the 2017 income statement. Now, it takes into account the latest statement to date, that of 2018 income. Difficult to navigate for taxpayers. “My situation has not changed, but that of my wife has changed. She found herself unemployed and opened her business. We don’t know what will happen“, Explains a man, who came to inquire at the Montpellier tax center (Hérault).

Your rate will increase in the event of exceptional income

Three possible situations: if your income has not changed in one year, the rate remains the same. However, it could increase if you have received exceptional income such as retirement benefits, bonuses or severance pay. Conversely, your rate will go down if your income fell last year. A modification of the rate verifiable on the website of the tax administration on your personal space, or quite simply on your payslip.