Guide to French Income Tax

5. Calculating Your French Income Tax Liability

1. Composition of Your Household
2. Income Tax Rates/Bands
3. Income Tax Allowances
4. Income Tax Credits

5.2. Income Tax Rates/Bands

1. Rates/Bands 2026
2. Exemption Thresholds 2026
3. Income Tax Payable 2026
4. Social Charges
5. Exceptionally High Income
6. Non-Residents

5.2.1. Rates/Bands 2026 (2025 Income)

There are five tax rates and bands on net income earned in 2025 (taxable in 2026), as follows:

The thresholds increased by 0.9% in 2026, after an increase of 1.8% in 2025 and over 5% the previous year.

Income tax rates are applied on a fractional basis so that each household 'part’ of the income is charged progressively, as we outlined in the previous section. Thus, if a couple have net income of €30,000 in the year there are two 'parts' of €15,000, with each part taxed using the scale rates.

Example: Assume a couple with two children with a net taxable annual income in 2025 of €55,950. The income is then divided into three parts being €18,650 (€55,950/3) each, with the first €11,600 of each part at 0% tax rate and the balance at 11%. The result is €775.50x 3 = €2,2360.50. For two persons on the same income the result is €1,801.75 x 2 = €3,603.50. The amount payable is less allowances and the discount, which is considered below.

There are various adjustments made to your tax liability that are applied automatically by the tax authority.

i. Quotient Familial - As we stated in the previous page, there is a cap on the tax benefit that is granted for dependants arising out of the division of the household into 'parts'.

The level of ceiling depends on the size and composition of the household, but as a general rule it is €1,807 for a half-part (child), but substantially higher for single-parent households. (2026 for 2025 income).

This ceiling does not operate between a couple without dependants, whose income will normally divided into two, with each tax part taxed separately.

ii. Discount - A discount mechanism (décote fiscal) operates for those who pay little by way of income tax. This discount operates to ease in the imposition of income tax on a household that becomes liable.

For 2026 (2025 income) if you are nominally liable to pay tax of less than €1,983 (single person) or €3,278 (couple), a reduction in income tax is granted to you on a formula basis that lowers the actual amount you would be required to pay.

The formula for the reduction is characteristically complex. In 2026 (for 2025 income) it is the difference between €897 (for a single person) or €1,483 (for a couple) and 45.25% of your gross income, provided your liability is no greater than the figures above.

By way of example for income earned in 2025, in the case of a single person in 2026 whose tax liability, based on 2025 income, is €1,000. They are entitled to a tax reduction because they are below the threshold of €1,983. The calculation of their tax reduction is: 897 – 45.25%* 1,000 = €444. Their final tax liability will therefore not be €1,000 but 1,000 – 444, or €536.

In the case of a couple whose tax liability is €1,000. They are entitled to a tax reduction because their tax liability is below the threshold of €3,278. The tax reduction is calculated as follows: €1,470 - 45.25%* €1,000 = €1,019. Therefore, the couple's final tax liability is not €1,000 but €1,000 - €1,019, or €0. The difference is not refunded.

Where smaller amounts of tax are due the discount will completely remove any liability.

iii. Under €61 Liability - If the tax due is no greater than €61 it is not charged.

iv. Flat Tax - Savings and investment income (dividends and certain other financial instruments) are subject to separate taxation through a 'flat-tax', called the Prélèvement Forfaitaire Unique (PFU), although it is possible to opt out of this tax. You can read more at Taxation of Savings and Investment Income.

v. Tax Credits - If you are entitled to any tax credits (such as home insulation) these will be deducted from your liability.

5.2.2. Exemption Thresholds 2026 (2025 Income)

In practice, only 44% of inhabitants in France pay any income tax at all; only around 14% pay at the rate of 30%, and less than 1% pay at the rate of 45%. So 56% of inhabitants pay no income tax.

The following table shows the maximum net taxable income below which a couple living on their own, and with a varying number of dependents in the household, would not be taxed.

NB: It applies to income taxed solely on the basis of the income tax bands and rates, and not on the basis of a flat-rate, eg non-residents, investment income and those who run a micro-entreprise who have opted for the flat-rate tax micro-fiscal.

As can be seen, a couple with no dependants would not pay any income tax on 2025 income if their net taxable income in 2025 was no greater than €32,859. The table also shows their nil imposition threshold with dependents in the household.

The table below shows the same analysis for a single person, who would pay no income tax living on their own with an income no greater than €17,595. The table also shows their nil imposition threshold with dependants in the household.

5.2.3. Income Tax Payable 2026 (2025 Income)

You can use the following formula to calculate the (approximate) amount of tax payable in 2025 on 2024 income, before the impact of the décote fiscal and the quodient familial and any tax credits to which you may be entitled.

It is only suitable if you are resident.

Once again, the formula has been provided by the French tax authority.

• I = Net taxable income
• N = Number of parts in the household

Thus, a couple with net taxable income of €85,000 being two household 'parts'. The total income is divided by 2, so €85,000/2 = €42,500 and therefore within the 30% tax band on marginal income. The formula is then (€85,000 x 0.3) - (€6,896.01 x 2) = €11,707.98 tax payable.

The result will before application of the ceiling under the quotient familial, and any credits or reductions in tax to which you may be entitled.

Alternatively, if you find the maths is tricky, with figures provided by the French tax authority you can read how much tax you will pay in 2025 at various points on the income scale, in a piece we published in France Insider at French Income Tax Payable in 2026. The figures are for single persons and married couples at income levels up to €250,000 a year.

Since 1st Sept 2025 a couple are granted a separate tax rate for their income, although it is possible to continue to use a joint rate. You can read more at Taxation of Couples. The change makes no difference to the amount of tax paid.

5.2.4. Social Charges

As well as your liability to income tax you also need to consider your liability to French income tax by another name, that of the social charges, which you can read about at Social Charges.

5.2.5. Contribution Exceptionnelle sur les Hauts Revenus

In addition to the standard progressive rates of French income tax, high-income taxpayers may be subject to a supplementary charge known as the contribution exceptionnelle sur les hauts revenus (CEHR).

The CEHR applies to individuals whose revenu fiscal de référence (RFR) exceeds €250,000 (single taxpayers) or €500,000 (married couples or those in a civil partnership, taxed jointly). It is levied at a rate of 3% on income between €250,000 and €500,000 (or €500,000 and €1 million for couples), and 4% on income above those thresholds.

The CEHR is assessed on the RFR, which is broader than taxable income (revenu imposable), as it includes certain categories of income before the application of specific allowances, deductions, or preferential regimes.

From 2025, and confirmed for 2026 with further technical refinements, an additional measure applies: the Contribution Différentielle sur les Hauts Revenus (CDHR). This mechanism is designed to ensure that high-income households are subject to a minimum effective rate of income tax of 20%.

The CDHR applies where the RFR exceeds €250,000 for single taxpayers or €500,000 for couples. It operates as a top-up: where the combined amount of income tax and CEHR is less than 20% of a recalculated income base, an additional charge is levied to bring the effective rate up to that minimum level.

For 2026, the calculation of this income base has been clarified and strengthened. It is derived from the RFR but adjusted to include certain categories of income that may otherwise benefit from flat or preferential tax treatment (such as investment income and capital gains), and to neutralise certain timing or structuring effects. The objective is to better reflect the taxpayer’s overall economic income and limit opportunities to reduce the effective rate through tax planning.

Social charges (prélèvements sociaux) are distinct from income tax and the CDHR. They are generally levied at an aggregate rate of up to 17.2%, although the effective rate may vary depending on the nature of the income and the taxpayer’s social security position (for example, in cross-border situations within the EU/EEA). These charges are not taken into account in determining whether the 20% minimum tax rate has been reached. As a result, the overall tax burden on certain types of income—particularly investment income—may be significantly higher when social charges are included.

5.2.6. Non-Residents

Income Tax

Individuals who are not tax resident in France are subject to French income tax on their French-source income only, including in particular rental income, certain investment income, and capital gains.

Non-residents are subject to minimum rates of income tax on their net taxable income (revenu net imposable), as follows (2026):

• 20% on income up to €29,373
• 30% on income above this threshold

The threshold is revised annually.

Despite these rates if you are able to justify a lower rate based on your worldwide income, you need to indicate this option on the tax return and include your tax return and tax notice from your home country.

If these are not available at the time, alongside your tax declaration, you need to submit Form 2041TM sur l'honneur, pending receipt of the relevant paperwork.

Social Charges (prélèvements sociaux)

Social charges are levied separately from income tax and their application depends on both the nature of the income and the taxpayer’s social security affiliation.

Property income (e.g. rental income)

EU/EEA or Swiss residents who are affiliated to a foreign social security system are generally subject to 7.5% (prélèvement de solidarité). Other non-residents are generally subject to 17.2%.

Investment Income

The taxation of French-source investment income depends on domestic French tax rules and any applicable double taxation treaty.

For 2026, the standard aggregate rate of social charges on investment income is 18.6%.

French residents and non-EEA non-residents are generally subject to 18.6%

EU/EEA or Swiss residents, affiliated to a foreign social security system are generally subject only to the 7.5% solidarity levy.

Accordingly for taxpayers subject to the minimum 20% income tax rate 38.6% (20% + 18.6%) is now a typical combined burden on investment income.

EU/EEA residents benefiting from the reduced regime typically face 27.5% (20% + 7.5%)

Social charges are not taken into account in determining whether the minimum income tax rate has been met.

You can read more at Taxation of Savings and Investment Income.

Deductibility of Maintenance Payments

For the purpose of calculating the average tax rate on worldwide income, certain maintenance payments (pensions alimentaires) may be deductible, provided they are paid to qualifying dependants (e.g. children or parents in France), and their deduction does not reduce the taxpayer’s tax liability in their country of residence

Minimum Tax Collection Threshold

No income tax is collected where the total liability does not exceed €305.

Next: French Tax Allowances

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