Budget 2026: Lawmakers reject government plan to freeze income tax brackets

Saturday 25 October 2025 - 15:30

By: Sahili Aya

Budget 2026: Lawmakers reject government plan to freeze income tax brackets

A €2 billion setback for the French government. Lawmakers in the National Assembly overwhelmingly rejected the planned freeze of the income tax brackets proposed by the executive during Saturday’s budget debates. The measure, intended to generate €2 billion in additional revenue, would have led to 200,000 more households paying income tax.

During the session, deputies went further than the Finance Committee, voting to index all income tax brackets to inflation.

A broad coalition — bringing together the far right, conservatives, part of President Macron’s centrist camp, and the left-wing France Unbowed — supported an amendment introduced by Laurent Wauquiez, leader of the Republicans (LR), opposing the government’s plan.

Public Accounts Minister Amélie de Montchalin urged lawmakers to instead back an alternative amendment from centrist MP Charles de Courson, which proposed indexing only the first tax bracket to inflation. Her appeal was unsuccessful.

De Montchalin argued that social benefits would also remain frozen in 2026, stressing that a full indexation would disproportionately benefit wealthier taxpayers who “do not need an extra boost to their purchasing power.”