How to pay less income tax in 2023?

Are you ready to take control of your financial future and unlock the secrets to reducing your tax burdens? In this article, we'll explore various strategies to optimize your tax returns and keep more money in your pocket. Let's dive in!

How to pay less income tax in 2023?

Unraveling the Tax Conundrum: A 10% Reduction on Salaries

All taxpayers are subject to a 10% reduction on their salaries. However, rather than simply accepting this reduction, you have the opportunity to reclaim the actual costs you incur. This presents an effective way to lower your annual tax bill. But remember, it's not just about deducting mileage or meal expenses. There's an extensive list of deductible expenses related to your salaries that you should be aware of.

Tips for Adult Children: Making the Right Moves

If you have adult children, you can take several steps to minimize your tax liability. First, you must decide whether it's more advantageous to keep them as dependents within your tax household or remove them. You can also consider the deduction of a pension if they file their own tax declaration. Here's an additional optimization opportunity: you can deduct the actual pension if you provide financial support or opt for a lump-sum pension if your child lives with you. Explore the options for reducing tax when dealing with adult children, including the application of lump-sum pension deductions for hosting a relative.

Navigating the Complexities of Reference Tax Income in 2023

Reducing your taxable income isn't always the ideal solution. It's essential to understand the concept of reference taxable income and how it impacts your eligibility for government assistance. Notably, the abolition of the housing tax depends on your reference tax income. If you want to delve deeper into this topic, explore our article that answers the critical question: Can you lower your reference income tax to be exempt from the housing tax? Additionally, we provide you with a list of tips that can help you achieve exemption from the housing tax.

Leveraging Family Situations to Reduce Income Tax

Did you tie the knot or enter into a civil partnership in 2022? Congratulations! This is an opportunity to optimize your tax return. In your first year together, you can choose between filing separate declarations or a joint one. Conduct simulations to determine the most tax-efficient approach. Keep in mind that even with differing incomes, making separate declarations can sometimes be more advantageous. For a comprehensive exploration of the tax implications of Pacs/marriage, refer to our detailed study.

If you have children and live with a partner, you have two potential avenues to reduce your tax liability. First, you can choose which spouse to attach the children to (Monsieur or Madame). Run simulations to make an informed decision; it's not always wise to place them under the higher earner. Simultaneously, consider deducting a spousal pension, a nuanced topic covered in our article on the taxation of cohabitants with children. It's worth noting that you can leverage the year 2022 for a transfer between cohabitants to strengthen your position in anticipation of tax authorities' scrutiny in 2023.

A Guide to Paying Less Tax: Living Alone

Living alone can offer unique tax advantages, potentially lowering your tax bill by several hundred euros. To qualify as living alone in the eyes of tax authorities, you must neither be married, in a civil partnership, nor cohabiting. But that's not all; you should also have one or more dependent children to benefit from the half-share applicable to "single parents." If you haven't met these criteria, raising a child alone for five years also entitles you to a half share. For an in-depth look at the conditions for securing a half share while living alone, check out our detailed guide.

Tax Reduction for Association Volunteers in 2022

Are you volunteering for an association in 2022? You may be eligible for a tax reduction. Employing someone at home can lead to a tax credit, with 50% of your home assistance expenses being reimbursed by the tax authorities, even if you don't owe taxes. Keep in mind that the rules vary depending on the type of assistance you receive, such as gardening, DIY, or cleaning. Study the best practices for declaring a home helper to maximize your tax credit.

Declaring Childcare Costs for Tax Savings

If you have a child under the age of 6, you can declare childcare costs, such as those related to crèches or nannies, to receive a 50% refund on the sums paid. Be meticulous when filling out the declaration, as the tax authorities are vigilant about the correct procedure. Although you may provide the amount, remember to input it accurately in the online declaration. Explore the procedure and conditions for declaring childcare expenses to ensure you don't miss out on potential tax savings.

Exploring Tax-Reducing Investments

If you're looking to reduce your tax burden without delving into real estate, you have several options to consider. On the low-risk investment side, the PERP (popular retirement savings plan), currently replaced by the PER, stands out as one of the few choices available. It offers a way to prepare for retirement while providing deductions that align with your tax bracket. Dive into a comprehensive study of the advice for opening a PER, and explore the other tax-saving investment opportunities for those investing in 2021. Keep in mind that these investments typically involve locking your funds for several years and come with a notable risk of capital loss. Explore our list of options:

Are you ready to take control of your finances and maximize your tax savings? Start implementing these strategies today to secure a brighter financial future.


1. Can I reduce my reference tax income to be exempt from the housing tax in 2023?

Yes, you can explore various options to lower your reference tax income and potentially qualify for exemptions, including the abolition of the housing tax.

2. How do I choose the best tax-filing strategy if I got married or entered into a civil partnership in 2022?

You have the flexibility to make separate or joint declarations, and simulations can help you decide on the most tax-efficient approach.

3. What is a half-share for single parents, and how can I qualify for it?

A half-share can significantly lower your tax liability, and you can qualify as a single parent by meeting specific criteria, including having dependent children.

4. Can volunteers of an association in 2022 receive tax reductions?

Yes, volunteers for associations may be entitled to tax reductions, particularly when employing someone at home for assistance.

5. What are the options for reducing taxes through investments in 2021, and what should I be aware of?

While there are tax-saving investment opportunities, it's crucial to understand that most of them involve locking in your funds for several years and come with risks of capital loss. Explore these options carefully before investing.


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