Taxes in France

Written by Luis Minvielle Moderated by Oleksandra Dosii

Luis Minvielle

Luis is a writer with over 5 years of experience in B2B software. Even though he has always worked in tech, a sector he regularly publishes about, his initial incursions into writing were, curiously enough, music essays discussing scenes from different parts of the world—most likely to deal with his unfulfilled ambition of becoming a neo-soul crooner.

Oleksandra Dosii

Oleksandra is a dedicated marketer with a passion for growing HR-tech products. She believes content marketing is about delivering high-quality content that provides value—not just generating leads. Since 2016, Oleksandra has been involved in tech talent relocation.

Last update: July 1, 2025

Next update: Scheduled for February 1, 2026

France’s tax system combines progressive income tax, mandatory social security contributions, indirect taxes like VAT, and other taxes. What you owe depends on your income level, residency status, and family situation.

In 2025, income tax rates range from 0% to 45%, while social contributions can take more than 20% of your gross salary.

The good news is that there are plenty of deductions available—particularly for families, students, and people working abroad.

Are income taxes in France high?

Income tax rates in France are high, yes. But, for some workers, they’re not as costly as in Germany or Belgium. Yes, you’ve read this right: If you compare them with some European neighbours, French taxes on salaries are not that high! It’s almost unthinkable to write this, considering that France is famously tax-heavy and wrapped in red tape, and on a first guess, it’d be a likely contender to be crowned “The country in Europe where you’ll pay the most taxes.”

But take this example. If a software engineer makes €55,000 a year, gross, in Berlin, they’ll take home €2,900 each month. Against that, a software engineer making the same amount per year in France will take home… €3,575 when the month ends. That’s a big difference. The difference is even bigger compared with Belgium, where the same software engineer will rake in €2,743. So, France still wins.

You can explain this, in part, because of French employers. Each time they pay you a salary in France, your employer will be making substantial contributions to benefits such as social security, which will partially offset the bite in your pay cheque.

What is the income tax rate in France?

France uses a progressive income tax system with five main brackets (2025):

These thresholds are per “part” in the family quotient system—for example, a married couple with two children would have 3 parts.

Even though the top rate is high, many earners pay far less due to allowances and deductions. Income is taxed after subtracting professional expenses (or a 10% flat-rate deduction), and then split across parts for families.

To France’s advantage, these brackets also mean that the French taxation system is not Europe’s most complicated. Actually, it’s quite lean and trimmed. In comparison, Portugal has 12 brackets!

Who pays taxes in France?

In France, your tax liability depends on whether you are considered a tax resident or a non-resident.

If you spend more than 183 days per year in the country or have your main home there, you are considered a tax resident and must pay tax on your worldwide income.

If you’re a non-resident, you are taxed only on income earned from French sources—such as salaries for work performed in France, rental income from French property, pensions paid from a French fund, or capital gains on French assets. Even in these cases, you are required to file an annual French tax return.

Non-residents are generally subject to a minimum tax rate:

• 20% on income up to €29,315
• 30% on income above this threshold

However, you can opt to be taxed at the average rate, which is calculated based on your total global income. This option is only considered if it results in a lower tax burden.

On top of this, income from employment or pensions is usually taxed at source through France’s prélèvement à la source system. But this withholding does not replace the obligation to file an annual return.

Finally, even if you pay tax in France, you may also be required to declare your income in your country of residence. In this case, if there is a tax treaty, it will say how to avoid double taxation.

Social security contributions in France

In France, workers contribute a significant portion of their salary to fund public services such as healthcare, pensions, unemployment insurance, and family benefits. These contributions are mandatory and come on top of income tax.

As of January 2025, most social security rates remain unchanged from 2024. Employees typically contribute around 22% of their gross salary, while employers pay an additional 40% to 45% depending on salary level and company size.

For example, on a gross monthly salary of €3,000, an employee’s social charges would reduce take-home pay to about €2,300 before income tax. The employer’s total cost for that salary would be over €4,300 once their contributions are included. The easiest way to estimate how much you can take home is with our tax calculator.

The rates depend on the type of contribution. For instance, the employer’s basic retirement contribution remains at 2.02%, and the health insurance rate stays at 7% for salaries below 2.5 times the minimum wage. Some contributions, like those for workplace accidents (0.17%) and wage protection (0.25%), are also unchanged for now.

While France’s social security system results in higher payroll charges, it also supports one of Europe’s most comprehensive welfare models. It’s expensive because it offers benefits that reduce personal out-of-pocket costs in areas like healthcare, childcare, and old-age pensions. French citizens who retire often comment on how good life is now that they’re receiving a payout. The French system is tax-heavy, but it works.

Other taxes in France

France has several taxes beyond income tax and social contributions, many of which apply based on property ownership, spending, or inheritance.

Property taxes include:

• Taxe foncière, paid annually by property owners or usufructuaries, based on the property's rental value and local rates.
• Taxe d’habitation, which was phased out for primary residences as of 2023. However, it still applies to secondary homes and other furnished properties not used as main residences.

Capital gains tax applies to profits from selling property or financial assets:

• For real estate, the standard rate is 19% income tax plus 17.2% in social charges, with potential exemptions based on how long you’ve owned the property.
• For stocks and securities, gains are usually taxed at a flat 30% (12.8% income tax + 17.2% social contributions), unless you opt for progressive income tax rates.

Value-added tax (VAT) is charged on most goods and services:

• The standard rate is 20%.
• Reduced rates include 10%, 5.5% (e.g. food, books), and 2.1% (e.g. some medicines).

Inheritance and gift taxes depend on your relationship to the donor and the value transferred:

• Spouses and civil partners are fully exempt.
• Direct heirs (children, parents) pay between 5% and 45%.
• Thresholds and tax-free allowances vary case by case.

Even if your income is taxed at source, you must file an annual tax return. Filing is done online at impots.gouv.fr, typically between April and June, depending on your department.

Online tax calculator

France’s tax system can get a bit tricky with things like deductions, family splitting, and social contributions. A good way to get a quick estimate of your take-home pay is to use the Relocate.me tax calculator for France.

How to reduce your taxes

France provides a range of deductions, credits, and allowances that can significantly reduce your taxable income. Here are some of the most common ways residents and expats save on taxes:

• Income splitting (quotient familial): Families benefit from lower taxes by dividing their total household income across members. The taxable amount per "share" goes down, which is especially helpful for couples with kids.
• Professional expenses: You can either take a flat 10% deduction automatically, or you can deduct actual work-related costs like meals, commuting, and training for the job, if they are higher than the flat rate.
• Charitable donations: Donations to eligible organisations allow you to deduct 66% of the amount donated, up to 20% of your taxable income.
• Tax breaks for expats: If you’re temporarily transferred to France for work, a portion of your foreign-source income may be exempt under certain conditions, depending on your employment contract and the origin of income. You can access this tax break if a company hires you to work in France from abroad.
• Tax credits: Some common credits include childcare expenses for children under six, energy-efficient home improvements and union or professional organisation subscriptions

These benefits are claimed when filing your annual return. In many cases, they not only cut what you owe—but may also qualify you for a refund.

France’s tax treaties

France has over 120 double taxation treaties, including with the US, UK, India, and most EU countries. These treaties prevent you from being taxed twice on the same income.

Here you have the list of tax treaties from the French Government in English.

Talk to a tax advisor

French tax law is detailed and case-specific—especially for expats or remote workers. If your situation is complex, speak with a professional French tax consultant to avoid overpaying or missing benefits. It’s also one of the best ways to learn more about the French tax break for expats.