SQUARRELThe plan to individualise taxation, envisaged for 2028, is not only about introducing a new tax scale. For couples, the main issues lie in the shift from a household-based approach to an individual one, and in the loss or temporary retention of splitting.
Bill No. 8676 provides for a reform of the taxation of individuals from 2028.
The issue is not only the new tax scale.
It is the shift from a household-based approach to an individual one.
Important
Bill No. 8676 is still under review. The final rules, thresholds, forms and practical arrangements will have to be confirmed at the end of the legislative process.
Current regime: three classes
A single tax scale for everyone, but the tax class determines how it is applied.
Tax class 1
The tax scale is applied to the taxable income of taxpayers who are single, divorced, or partners who have not opted for joint taxation.
Tax class 1a
A sliding-scale allowance is deducted from income before the tax scale is applied, for taxpayers who are single parents, widowed, or single and aged over 64.
Tax class 2
Joint taxation with the splitting mechanism for taxpayers, whether residents or assimilated non-residents, who are married and taxed jointly, and for partners who opt for it:
Couple’s income ÷ 2, tax scale applied, then result × 2.
Reference: Article 121 LIR: splitting mechanism currently applicable in tax class 2.
2028 proposal: a single tariff, Tarif “U”
Individual taxation would become the general regime from 2028.
Each taxpayer would be taxed on the income attributed to them.
€26,650
Tax-free first band.
10 bands
Compared with 23 currently.
42%
Top marginal rate unchanged.
Reference: Bill No. 8676 — Tarif U. Thresholds and arrangements to be confirmed by the final vote, potentially in autumn 2026.
The decisive point for couples: losing or keeping splitting
Comparable incomes
Tarif U may be neutral or favourable.
A simulation is still necessary.
Uneven incomes
The removal of splitting could increase the couple’s total tax bill.
Single-income couple
Tarif T is, in principle, the protective regime to be analysed first.
The 25% threshold for the second income can serve as a benchmark for simulations.
Reference: Bill No. 8676 — Tarif U / Tarif T; analysis grid for residents drawn from the sources of the bill.
Tarif “T”: the transitional regime
The bill provides for splitting to be retained temporarily, subject to conditions.
25 years
Announced period for which Tarif T is retained for certain couples married or in a partnership before 1 January 2028.
Resident spouses married before 2028
Tarif T applies automatically, unless they voluntarily withdraw — opt-out.
Partners before 1 January 2028
Annual joint application required.
Marriage or partnership after 2028
Tarif U applies directly.
Reference: draft Article 118bis LIR — transitional regime to be confirmed.
Decide before the end of November 2027
An option may have irreversible effects.
Before 30 November 2027
Joint application for individual taxation:
Tarif U for withholding tax from 1 January 2028.
From 1 to 31 December 2027
Announced effect of a late joint application:
Tarif U for 2028 through the tax assessment; withholding tax under Tarif U from 2029.
Assimilated non-residents
Annual check of the conditions for assimilation:
Failure to meet the conditions results in an irreversible exit from Tarif T.
No option without a multi-year U / T simulation
A comparison limited to 2028 alone would be insufficient.
The future split of income — retirement, reduced working hours, career break or return to work — can significantly change the relative merits of the two regimes.
Reference: Bill No. 8676 — transitional provisions. Forms and practical arrangements still to be confirmed.
Key takeaways
The debate on the individualisation bill often focuses on the new tax scale.
For couples, however, the main issue lies elsewhere:
- in the possible removal of splitting;
- in the possibility of temporarily retaining Tarif T;
- in the irrevocable nature of certain decisions;
- in how the split of the couple’s income will change in future.
As Bill No. 8676 is still under review, the final rules will have to be confirmed before any decision is taken.
Need to assess the consequences of the reform?
SQUARREL assists individuals in analysing their tax situation and in comparing the effects of different options in the short and medium term.
Any analysis must take into account the composition of the household, the current and future split of income, and the legal conditions ultimately adopted.
This content is general. How it applies depends on your situation and the rules in force.
Related service: Advice & simulations · Describe your needs
← All articles