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Net Salary Calculation

9K views 2 replies 2 participants last post by  OMG53 
#1 ·
Hello All,

I checked couple of posts but couldn't get a real idea of the French tax system.

I am offered for a position 44 keuro per year and plus some bonus. I am in negotiation phase so would like to know how much I can consider I will have in hand after all taxes.

My calculation and what the HR said briefly is that there will be %23 tax for every month and i will have to pay ~1.5 salary again to state at the end of the year.

So that would make 2470 euro per month net with all these deductions?? Is this correct?

Thanks in advance for answers.
 
#2 ·
Be careful how you phrase things when talking to the HR people. There will be about 23% withheld from each pay - but this is for "cotisations" which are social insurances (health care, retirement, family allocation, etc.).

After the end of the calendar year, you file a tax declaration and are assessed your income taxes - which aren't due until autumn of the following year. (There is, however, provision for paying your income tax bill in monthly or quarterly installments.) Once you have received and paid your first year's income tax bill, you then set up a monthly or quarterly payment to cover the prior year's taxes. So basically, you get a year of "grace" before you have to start paying in on income taxes. Obviously, it's not a bad idea to put some money aside that first year to cover your first tax bill.

How much you pay in income tax is dependent on your family situation - you'll pay less if you have a spouse and kids than if you're single. But there are various credits and deductions you may be able to take advantage of once you get familiar with the system. The 2470 € net isn't a bad estimate, though you'll actually have more than that in hand from your paycheck each month since income taxes are not deducted by the employer.
Cheers,
Bev
 
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