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French Income Tax Exemption Thresholds 2016

Tuesday 03 May 2016

The income thresholds that apply before you become liable for income tax in France in 2016.

Income tax in France in structured around five income bands, with rates that apply to the fractional income within each band.

The tax bands and rates for 2016 (for 2015 income) are as follows:

Tax Band
Rate
Up to €9,700 0 %
€9,700 to €26,79114 %
€26,791 to €71,82630 %
€71,826 to €152,10841 %
From €152,10845 %

These figures do not mean that if your income is, say, €25,000, it will all be charged at the rate of 14%. The rates apply to each fractional slice of income for each 'part' of the household, using a method called the 'quotient familial'. An adult is normally one part, and a child a half-part.

Example: Assume a household of two adults on a joint net taxable income of €30,000. In the first place their income is divided into two parts of €15,000. Each part is then taxed on a fractional basis using the tax bands. The first €9,700 of each part is zero rated, and the remaining €5,300 of each part then charged at 14%. The tax payable by each adult is then multiplied by two to give the total tax payable.

Accordingly, the following table shows the taxable income threshold (after basic allowances) that applies before you pay income tax in France.

It shows, for example, that a couple with a taxable income below €27,483 would not pay income tax. A couple with two children would not be liable for tax if their joint taxable income was less than €37,103.

A single person living on their own would pay no income tax if their taxable income was below €14,704.

The figures take account of the fact that if your tax due is less than €61 no tax is collected.

Number of Parts
Couple
Single
1
-
€14,704
1.5
-
€19,554
2
€27,483
€24,404
2.5
€32,333
€29,254
3
€37,103
€34,104
4
€46,883
€43,804


Source: Impots.gouv

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