special allowance for the over 65s and the disabled

Increase in the special allowance for the over 65s and the disabled Adobestock

In order to reduce their tax burden, seniors and disabled people are entitled to a special allowance on their income. The amount of this benefit as well as the ceiling on resources required to benefit from it will increase in 2023. Thanks to this increase, some taxpayers will normally see their taxes fall or even disappear.

People over the age of 65 on December 31, 2022 benefit from an allowance on the income they received in 2022 (taxes 2023).

The amount of this advantage depends on the size of the overall net income which is obtained after deducting any deficits from previous years and the taxpayer’s expenses. However, it does not take into account capital gains subject to income tax at a proportional rate or income subject to a withholding tax.

As the scale of theincome taxthe amount of the allowance is increased by 5.4% in 2023. It therefore now amounts to:

  • €2,620 for taxpayers aged over 65 with net taxable income in 2022 not exceeding €26,400;
  • €1,310 for those whose overall net income is between €16,410 and €26,400.

The allowance applies to each person in the household over the age of 65 as long as the household meets the means test.
Consequently, it is doubled for a married or PACS couple whose 2 members are over 65 years old.

It is the tax authorities who are responsible for deducting the allowance to which the household is entitled. Beyond €26,400 of taxable income, the allowance is abolished.

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An identical scheme for disabled people

The specific allowance for people over 65 also applies to those who, whatever their age, receive a military invalidity pension for an incapacity of at least 40%, a disability for an accident at work of at least 40% or are holders of a “mobility inclusion” card bearing the mention “disability” for a disability of at least 80%.

Disabled people can benefit from the tax deduction for income for the year during which they applied for the disability card at the town hall of their place of residence. If the examination of the declaration of income for the following year shows that their request has not been approved, it is necessary to regularize the initial taxation.

Disability pensions are taxable and must be reported on the tax return.

A reduction, or even an exit from the tax

Thanks to this 5.4% increase, some retirees previously excluded from the allowance may be entitled to it this year. Those with modest incomes will normally benefit from a tax reduction. Some might even see it disappear.

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