Home Properties Rentals Guides to France Service Directory French News
Login | Register

News in France
French News
Building & Renovation
Business in France
French Life
French Taxation
Health in France
Money in France
Property Picks
Property in France
Travel in France

Site News

Property Market Reports
Main Menu
Search
RSS
Newsletter
Guides To France
Contact the Editor

Search from our database of over 10,000 properties and find your dream home today!
Price
Region
Bedrooms



French Income Tax Exemption Thresholds 2017

The maximum income thresholds that apply before you pay income tax in France in 2018 on 2017 income.

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

The tax bands and rates for 2018 (for 2017 income) are as follows:

Tax Band
Rate
Up to €9,807 0 %
€9,807 to €27,80614 %
€27,806 to €72,61730 %
€72,617 to €153,78341 %
From €153,78345 %

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.

Thus, by way of an 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 €9,807 of each part is zero rated, and the remaining €5,139 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, provided you are resident. Non-residents pay at a basic rate of 20% on net income such as rent.

The table shows that a couple with a taxable income below €27,838 would not pay income tax; a couple with two children would not be liable for tax if their joint taxable income was less than €37,645; a single person living on their own would pay no income tax if their taxable income was below €14,917.

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
-
€14,917
1.5
-
€19,821
2
€27,838
€24,724
2.5
€32,742
€29,628
3
€37,645
€34,503
4
€47,452
€44,281

In addition to the basic rates of income tax, those with a taxable income of upwards of €250,000 pa are liable for a special tax called contribution exceptionnelle sur les hauts revenus.

This tax is at the rate of 3% on income up to €500,000, and at the rate of 4% on income above €500,000.

Married couples and those in a civil partnership are exempt up to €500,000, when they then become liable at the rate of 3% to €1m, and 4% above this figure.

Related Reading:,

This article was featured in our Newsletter dated 08/02/2018




Advertising Links Help Info France Information Regions Version Francaise Forums

Copyright © French-Property.com | Property in France | Rentals France