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Since January 2019, the collection of income tax has been simplified for French workers thanks to the withholding tax.

Indeed, the withholding tax consists of deducting the tax before payment of the income. The amount of tax is deducted each month from the payslip. Thus, the payment is spread over twelve months and the one-year lag is removed.

In addition, the tax automatically adapts to the amount of income received. It is in this case that you should be vigilant if you change jobs or if you get a promotion, think about updating your situation and not just your professional situation. If you get married, for example, or if you are expecting a child, this will have an impact on the amount of your taxes, so do it as soon as possible at the risk of finding yourself with a regulation that is a little difficult to collect.

To update your situation, here is what to do, as the stock market money site tells us:

At the end of these steps, a new rate is calculated. This updated rate is then automatically transmitted to the bodies paying income, which are required to apply it within two months.

Without action on your part, your withholding tax rate will automatically be updated on September 1 based on the last tax return that took place in the spring. Indeed, each year, the withholding tax rate is automatically updated by the tax authorities at two times: September 1 or January 1.

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