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 Tax Credits

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5.2. French Income Tax Rates

The tax scale for the tax year 2008 (for income earned in 2007) applicable to each ‘part’ in a household is set out below.

The rates are applied on a sliced basis so that each ‘part’ of the income is charged on a progressive basis.

There are five tax bands, as follows:


Table: French Tax Bands - 2008

Income Share	Tax Rate
Up to €5,687	0%
Between €5,688 - €11,344	5.5%
Between €11,345 - €25,195	14%
Between €25,196 - €67,546	30%
Above €67,546	40%

On the basis of these rates we show below an approximate guide to the net income you would need to earn in 2007, by household size, before you would be liable to pay income tax in 2008.


Table: Income Thresholds in France - 2008

Household Size	Income
Single Adult	€11,404
Single Adult + Child	€14,340
Two Adults	€17,184
Two Adults + Child	€20,027
Two Adults + Two Children	€22,871

The position is more generous for those reaching 65 years, and those suffering a major disability (irrespective of age), which you can see more about in our section on tax allowances.

If your net 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.

If you are liable to less than €61 in income tax, then no tax charge is made, and 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! We have taken into account these concessions in the calculation of the above table.

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.

If you are in the fortunate position of being eligible for recovery of overpaid taxes, you are probably going to need an accountant to take you through the whole process, as the calculation is not an easy one to make!

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Next: French Tax Allowances

Back: Composition of Your Household