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French Income Tax Exemption Thresholds 2019/20

Friday 07 February 2020

The maximum income thresholds that apply before you pay income tax in France in 2020 on 2019 income.

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

The tax bands and rates for 2020 (for 2019 income) are as follows:

Tax Band
Rate
Up to €10,064 0 %
€10,065 to €27,79414 %
€27,794 to €74,51730 %
€74,518 to €157,80641 %
From €157,80745 %

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 €10,064 of each part is zero rated, and the remaining €4,936 of each part then charged at 14%. The tax payable by each adult is then multiplied by two to give the total tax payable.

The rates are for those who are resident in France: non-residents pay at a basic rate of 20% on net income, such as French rental income.

The following table shows the income thresholds (after basic allowances) that apply before you will pay income tax in France on 2019 income, based on household size.

The table shows that:

  • A couple (married/civil partnership) with a taxable income below €28,560 would not pay income tax.
  • A couple with two children would not pay tax if their joint taxable income was less than €38,624.
  • A single person living on their own would pay no income tax if their taxable income was below €15,303.

Number of Parts
Couple
Single
1
-
€15,303
1.5
-
€20,335
2
€28,560
€25,367
2.5
€33,562
€30,399
3
€38,624
€35,409
4
€48,688
€45,495

In due course, we will publish information on the amount of income tax payable at different levels of income above these exempt thresholds.

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 the '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, at which point they become liable at the rate of 3% to €1m, and 4% above this figure.

Related Reading:
  • Guide to French Income Tax
  • French Tax News
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