2025 Income Tax Return: These 7 Situations Entitle You to a Tax Reduction or Credit While Retired

Every year, thousands of retirees forget to declare situations that entitle them to tax reductions or credits. Some systems are automatic, while others require you to keep and submit supporting documents. In any case, a good understanding of tax rules can lead to real savings, even with a modest pension.

First of all, note that all income from retirement pensions benefits from an automatic 10% tax deduction. This reduction is capped at €4,321 per tax household in 2025. You don't need to take any action: the tax authorities apply it directly to your taxable income. This measure applies to both general pensions and supplementary pensions, and helps mitigate the tax impact on low incomes.

As for other deductions and credits, the rules vary depending on your family, economic, and personal situation. Here's a rundown.

Deduction of retirement savings contributions (PER)

Even after retirement, you can continue to contribute money to a Retirement Savings Plan (PER). These contributions are tax-deductible, up to a limit set each year. In 2025, this limit is €4,637 for taxpayers without a job.

This amount can be increased if you have unused ceilings from the previous three years: "For example, if you have not used your entire deduction ceiling in 2024, you can use the remaining portion to increase your deduction ceiling in 2025 ," explains the official website of the public service. The PER is therefore also an interesting tax management tool, especially in the case of exceptional income.

If you used home help in 2024, you are entitled to a tax credit equivalent to 50% of the expenses actually incurred. This includes home maintenance, light gardening, DIY, administrative assistance, and assistance with daily tasks. This credit is capped at €12,000 per year, increased by €1,500 per person over 65 in the tax household, up to a limit of €15,000.

The first year you employ a home worker, this ceiling can be increased to €15,000. "This increased ceiling can apply even if the taxpayer has already benefited from the tax advantage in a previous year for amounts paid to an association, a company or an approved organization or to a non-profit organization authorized for social assistance or approved by a social security organization," notes the Ministry of the Economy.

Be careful: some services are themselves limited by a ceiling. This is the case for DIY (€500 per year per tax household), home computer assistance (€3,000 per year per tax household), and small gardening jobs (€5,000 per year per tax household).

Tax reduction for nursing home expenses

Retirees living in nursing homes (Ehpad) can benefit from a tax reduction equal to 25% of their expenses for accommodation and dependent living expenses. The maximum amount taken into account is €10,000, representing a potential reduction of €2,500 per year.

Please note that only expenses actually incurred by the resident (excluding social assistance or benefits such as the APA) can be declared. This reduction is also available to children who financially support a parent who is staying with them.

Tax credit for housing adaptation

Have you carried out work to make your home more accessible (ramp, walk-in shower, stair lift, etc.)? These expenses may qualify you for a 25% tax credit. This credit is capped at €5,000 for a single person and €10,000 for a couple, over a period of five consecutive years. It can be combined with certain Anah (National Housing Agency) grants , and the work must be carried out by a professional recognized as a guarantor of the environment (RGE).

Tax reduction for donations to associations

Donations made in 2024 to associations or organizations recognized as being of public utility are eligible for a tax reduction of 66% of their amount , up to a limit of 20% of taxable income. For donations to organizations helping people in difficulty, the reduction rises to 75% up to a limit of €1,000. It is important to keep the tax receipts issued by the associations to benefit from this reduction. If the ceiling is exceeded, the excess can be carried forward over the following five years.

Tax credit for union dues

Finally, retirees who contribute to a representative union benefit from a tax credit of up to 66% of the amount paid, up to a limit of 1% of the gross pension amount. This credit is granted even if you are not taxable. It cannot be combined with a flat-rate deduction if you have already opted for it at the time of the declaration: it is therefore crucial not to double the benefits on the same amount.

Tax benefits for retirees are numerous and often underestimated. To take full advantage of them, remember to keep your bills, donation certificates, home care contracts, and proof of work. If in doubt, support from a loved one, a tax office, or an association can make all the difference. A few minutes of attention today could save you hundreds of euros tomorrow!