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5. Calculating Your French Income Tax Liability

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

5.4. French Income Tax Credits

The standard tax breaks in France take the form of either tax relief (réduction d’impôt), or a tax credit (crédit d’impôt).

A réduction d’impôt is an allowance against the amount of income tax payable, whilst a crédit d’impôt is a payment to you by the tax authority.

A tax credit will, therefore, be important to you, even though you may pay little or no income tax in France.

The main tax credits are:

  1. Home Energy Conservation
  2. Home Adaptations
  3. Child Care

5.4.1. Home Energy Conservation

An tax credit of 30% is available for the installation of certain energy conservation works in the family home.

Second homes are not eligible.

The allowance is called crédit d’impôt pour la transition énergétique (CITE).

Normally only the material costs have been eligible, but in the case of some works labour costs can also be charged.

However, the tax credit is only available if the work is carried out by a professional tradesman, so DIY schemes are not eligible.

The maximum eligible costs are €8,000 per person, or €16,000 for a couple.

The rules are quite complex and caution is needed.

You can read more information at Tax Credits for Home Energy Conservation in France.

5.4.2. Home Adaptations

An allowance of between 15% and 25% against the cost of specific works to give greater mobility or safety to elderly or disabled persons in the home.

The allowance is called crédit d’impôt l’aide à la personne.

As with home energy conservation works, labour costs are not eligible. The maximum eligible costs are €5000 for a single person, which is doubled for a couple.

5.4.3. Child Care

An allowance of 50% up to a maximum of €2,300 per child under 7 years of age towards the costs of child care outside of the home, called les frais de garde d’enfants.

Only those costs actually incurred by you are eligible, so if you receive assistance from your employer, or the social security system, the allowance is only available on costs net of this assistance.

No allowance is payable where the child is attending a maternity school.

Next: Payment of French Income Tax

Back: French Income Tax Allowances

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