5. Calculating Your French Income Tax Liability

1. 5.1. Composition of Your Household
   5.2. French Income Tax Rates
   5.3. French Tax Allowances
   5.4. French Income Tax Credits

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5.2. French Income Tax Rates and Thresholds

The tax rates for 2009 (for income earned in 2008) applicable to each ‘part’ in a household are set out below.

The rates are applied on a sliced basis so that each ‘part’ of the income is charged on a progressive basis. Thus, if a couple have net income of €30,000 in the year, then there are two 'parts' of €15,000, with each part taxed along the scale.

There are five tax bands, as follows:


Table: French Tax Bands - 2009

Income Share	Tax Rate
Up to €5,852	0%
Between €5,853 - €11,673	5.5%
Between €11,674 - €25,926	14%
Between €25,927 - €69,505	30%
Above €69,505	40%

We show below the income tax thresholds that apply for 2009 for income earned in 2008. If your income is below these figures, then you will not be liable to French income tax.

The figures are shown by marital status and age, and by household size ('parts') and type of income. For those on a salary or pension the gross income is shown; for those whose income comes from a business, the figures are the net profits after expenses.

If you have problems calculating your household size, refer back to the previous page, Section 5.1.

In February 2009 the French government announced a reduction in income tax for those with a net income of less than €12,475, around 6 million households. This concession is not set to apply for 2010, and is not fully reflected in the following tables.


Table: French Income Tax Thresholds - 2009

Single, Widowed, or Divorced/Separated
Under 65 Years
Household Size	Salaried/Pension	Business Professional
1	13,029	11,726
1.5	16,370	14,733
2	19,621	17,659
2.5	22,872	20,585
3	26,123	23,511
3.5	29,374	26,437
4	32,626	29,363

Single, Widowed, or Divorced/Separated
Over 65 Years
Household Size	Salaried/Pension	Business Professional
1	15,501	13,951
1.5	17,629	15,866
2	20,880	18,792
2.5	24,131	21,718
3	26,123	23,511
3.5	29,374	26,437
4	32,626	29,363

Married Persons
Under 65 Years
Household Size	Salaried/Pension	Business Professional
2	19,621	17,659
2.5	22,872	20,585
3	26,123	23,511
3.5	29,374	26,437
4	32,626	29,353

Married Persons
Over 65 Years
Household Size	Salaried/Pension	Business Professional
2	22,139	19,925
2.5	25,001	22,501
3	26,123	23,511
3.5	29,374	26,437
4	32,626	29,353

Source: SNUI

If you have a serious disability under 65 years of age, then your tax position is slightly more generous than the figures shown above, which you can read more about in our section on tax allowances.

In the case of a married couple, where one of the spouses is under 65 years of age, but the other at least 65 years, then the couple are treated for tax purposes as though they were both 65+. The same principle applies where one of the spouses is seriously disabled.

If your income (as determined by the tax authority) was higher than any of the threshold figures in the table, but you were entitled to an income tax credit (say, for energy conservation works), then the value of the credit would be set against the amount of tax for which you were liable. Even if you paid no income tax, then a tax credit would earn you a cheque from the French taxman!

If you are liable to less than €61 in income tax, then no demand for the tax is made. Below a tax charge of €838, a rebate is payable to you, on a formula basis, that would lower the amount you would actually be required to pay! These concessions have been taken into account in the calculation of the above tables.

At the top end, the government have also introduced a ‘cap’ on the amount of taxation that you should be obliged to pay.

This cap is called the bouclier fiscal and is set at 50% of net income for total taxes from income tax, wealth tax, the social welfare levies (CSG/CRDS), and local taxes.

It is unlikely you would benefit from this cap unless you were liable to income tax at the highest rate, and also paid wealth tax.

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Next: French Tax Allowances

Back: Composition of Your Household