Individuals who have their tax domicile in France, whether French citizens or foreign residents, are generally subject to personal income tax (PIT) on their worldwide income, unless a double tax treaty provides otherwise.
Those who are non-residents are only taxed on income arising from French sources or, in some specific cases, on imputed income.
How Personal Income Tax Works in France
All categories of income are combined and, after certain deductions, are taxed at progressive rates. The French system applies the income-splitting method (quotient familial), which takes into account the taxpayer’s family situation — meaning the more dependents you have, the less tax you pay.
Here’s how the splitting system works:
- Single taxpayer: 1 share
- Married couple without children: 2 shares
- First two dependent children: 0.5 share each
- Third and subsequent children: 1 full share each
For instance, a married taxpayer with three children would have four shares. However, the tax reduction from income splitting is capped depending on total taxable income and marital status.
French Income Tax Brackets in 2025
The French tax brackets are progressive, ranging from 0% to 45%, plus additional surtaxes on high incomes:
- 3% surtax on income exceeding EUR 250,000 for single taxpayers or EUR 500,000 for couples filing jointly.
- 4% surtax on income above EUR 500,000 for single taxpayers or EUR 1,000,000 for couples.
Starting from 2025, a Differential Contribution on High Incomes (CDHR) may also apply to residents whose adjusted taxable income exceeds EUR 250,000 (single) or EUR 500,000 (joint).
Below are illustrative examples of how taxable compensation and PIT evolve according to income level (based on 2024 PIT rates and average 2023 social contributions):
| Total Income (€) | Net Taxable (€) | PIT (Single) | PIT (Married) | PIT (Married +1 Child) | PIT (Married +2 Children) |
|---|---|---|---|---|---|
| 35,000 | 28,686 | 1,447 | 0 | 0 | 0 |
| 50,000 | 41,060 | 4,285 | 856 | 0 | 0 |
| 80,000 | 66,019 | 11,024 | 4,222 | 3,457 | 2,656 |
| 150,000 | 124,259 | 29,829 | 19,947 | 18,156 | 16,365 |
| 300,000 | 248,910 | 82,284 | 64,094 | 62,303 | 60,512 |
Social Surcharges in France
In addition to income tax, several social contributions apply to employment, rental, and investment income. The main ones are:
- CSG (Contribution Sociale Généralisée): 9.2%
- CRDS (Contribution au Remboursement de la Dette Sociale): 0.5%
- Other levies: 7.5% (depending on income type)
| Type of Income | CSG (%) | CRDS (%) | Other Levies (%) | Total (%) |
| Employment | 9.2 | 0.5 | – | 9.7 |
| Rental | 9.2 | 0.5 | 7.5 | 17.2 |
| Dividends | 9.2 | 0.5 | 7.5 | 17.2 |
| Interest | 9.2 | 0.5 | 7.5 | 17.2 |
| Capital Gains | 9.2 | 0.5 | 7.5 | 17.2 |
Residents affiliated with a social security scheme in another EEA country or Switzerland are exempt from CSG and CRDS but remain subject to the solidarity levy (7.5%) on investment income.
Inbound Assignee Regime (Article 155 B of the French Tax Code)
This special regime applies to employees transferred to France by a foreign employer or recruited abroad by a French company. To qualify, individuals must not have been French tax residents in the five years preceding the start of their employment in France and must meet residence conditions.
Eligible employees may receive:
- Tax exemption on salary supplements related to the transfer, or
- Flat 30% exemption on total remuneration.
They may also benefit from tax exemption on foreign workdays, with total exemption limited to 50% of total remuneration. Alternatively, taxpayers can opt for an exemption limited to 20% of taxable remuneration.
The inbound regime is valid for up to eight years from arrival (or five years for those who started before July 2016). It cannot be combined with other expatriate tax regimes. Because the rules are complex, professional tax advice is strongly recommended.
The ‘Headquarters’ Tax Regime: tax bracket France
Certain expatriates not eligible for the inbound regime can still claim full tax exemptions on specific allowances — provided they do not stay in France for more than six years and were not French tax residents the year before their transfer.
Under this regime, for example, the reimbursement of tuition fees for dependent children in primary or secondary school can be exempt from French tax.
Local Taxes on Income in France
France does not impose local income taxes. However, individuals occupying or renting a property in France on 1 January of the tax year may owe local housing taxes.
Since 2023, the main residence is exempt from housing tax, though secondary residences remain taxable.
Need Expert Help with French Taxes?
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