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French National Assembly Backs Alimony Tax Reversal in First Reading

Senate scrutiny will determine whether the change survives the budget process.

Overview

  • The amendment makes alimony non-taxable for recipients and taxable for payers, with a €4,000 per child cap up to €12,000 a year and a half tax share granted to the payer per child.
  • It was introduced by ecologist MP Marie-Charlotte Garin and passed through an unusual coalition of left-wing deputies, the National Rally, and part of Renaissance.
  • The government opposes the measure, with Public Accounts Minister Amélie de Montchalin arguing it would advantage higher-earning women recipients and signaling a push to rewrite it during the parliamentary shuttle.
  • Supporters cite an estimated €450 million annual budget effect, while the minister warns judges may lower future alimony awards if tax rules change.
  • The provision is included in the 2026 budget text after this first reading, but a similar attempt was dropped last year and later rejected by the Senate, leaving its fate uncertain.