France Income Tax Rates 2026: Individuals, Companies, Capital Gains and VAT
An overview of French personal income tax, tax residence, business taxation, value-added tax, real estate capital gains and property wealth tax, with the original 2017-2018 rates retained for historical reference.
1. French personal income tax rates in 2026
Under Article 197 of the French General Tax Code (Code général des impôts, CGI), personal income tax is progressive. Taxable household income is generally divided by the household's number of tax shares (quotient familial), subject to applicable limits and adjustments.
| Taxable income per tax share (2025 income) | Rate for 2026 assessment |
|---|---|
| Up to EUR 11,600 | 0% |
| Over EUR 11,600 to EUR 29,579 | 11% |
| Over EUR 29,579 to EUR 84,577 | 30% |
| Over EUR 84,577 to EUR 181,917 | 41% |
| Over EUR 181,917 | 45% |
The brackets are marginal: the highest applicable rate does not apply to all income. Household shares, tax reliefs, tax credits and special contributions can change the final liability. Source: French tax administration guidance on the 2026 scale.
Employment deductions and pension contributions
Employment income generally qualifies for a standard 10% professional-expense deduction, subject to an annually updated minimum and maximum, or an election to deduct eligible documented actual expenses. The historical maximum of EUR 12,305 cited for 2017 must not be used for a current return. Qualifying retirement savings contributions may be deductible within individual statutory limits; see the official personal tax guidance.
Filing and payment
France generally uses withholding at source (prélèvement à la source) for salaries and certain other income, with annual returns and reconciliation. The old February, May and September instalment schedule is not a general statement of current payment obligations. Filing deadlines depend on the year, location and filing method; consult impots.gouv.fr.
2. French tax residency and non-resident taxation
CGI Article 4 B defines French fiscal domicile through alternative tests, including a household or principal place of abode in France, a principal professional activity in France (unless ancillary), or the centre of economic interests in France. A simple 183-day count is not the sole legal test. Applicable double-tax treaties can override the domestic outcome.
Under CGI Article 4 A, French tax residents are generally subject to French income tax on worldwide income, subject to treaties and statutory reliefs; non-residents are generally taxed on specified French-source income. Treaty residence, source-country withholding and foreign tax credits must be examined case by case. Inheritance and gift taxes follow separate connecting rules.
3. Corporate income tax in France
French corporate income tax (impôt sur les sociétés, IS) is governed principally by CGI Article 219. The general rate for financial years beginning on or after 1 January 2022 is 25%, replacing the 33.33% standard rate discussed in the original 2017-2018 article.
| Corporate profits / qualifying status | Ordinary rate |
|---|---|
| General taxable corporate profits | 25% |
| First EUR 42,500 of taxable profits of qualifying smaller companies | 15% |
| Qualifying profits above EUR 42,500 | 25% |
The 15% reduced rate generally requires annual turnover not exceeding EUR 10 million, fully paid-up capital and at least 75% qualifying individual ownership (directly or through eligible companies). Certain businesses may owe additional contributions or fall under special rules. See official corporate income tax rates and conditions.
4. Value-added tax (VAT / TVA) in France
French VAT (taxe sur la valeur ajoutée, TVA) is principally governed by CGI Article 278 and related provisions. Rates depend on the goods or services and, in some cases, the territory.
| VAT rate | Typical application in metropolitan France |
|---|---|
| 20% | Standard rate for most taxable supplies |
| 10% | Selected restaurant services, passenger transport, accommodation and qualifying home improvements |
| 5.5% | Selected essential foods, books and qualifying energy-efficiency works |
| 2.1% | Restricted categories, including certain medicines and publications under specific conditions |
Classification, exemptions and overseas territorial rates require separate review. Official reference: French VAT information for businesses.
5. Capital gains tax on French real estate
Under CGI Article 150 U and related provisions, gains on a qualifying main residence are generally exempt. Taxable gains on other French property are generally subject to 19% income tax and, where applicable, 17.2% social levies, before holding-period relief and any special surcharge. Certain non-residents covered by qualifying social-security arrangements may be exempt from CSG and CRDS, with a different remaining levy treatment.
Acquisition costs, improvements and holding-period relief
- Documented qualifying acquisition costs can increase the tax basis; a 7.5% acquisition-cost allowance may be available in eligible purchased-property cases.
- Qualifying construction or improvement costs may be included subject to statutory conditions; an eligible 15% allowance can apply after more than five years of ownership, without using the same expenses twice.
- Holding-period allowances generally result in full exemption from the 19% income tax after 22 years and from applicable property-gain social levies after 30 years.
Taxable real estate gains above EUR 50,000 may also attract a progressive surcharge of 2% to 6%, with smoothing provisions for specified bands. See the official real estate capital gains calculation guide and non-resident property sale guidance.
Capital gains on shares
Gains on securities follow different rules from real estate. The flat-tax (prélèvement forfaitaire unique) regime and any election for progressive taxation should be checked for the year of disposal, including the applicable social contribution rates. See official guidance on securities gains.
6. French property wealth tax (IFI)
From 2018, the former general wealth tax (ISF) was replaced by the real estate wealth tax (impôt sur la fortune immobilière, IFI), principally under CGI Article 964 and subsequent provisions. IFI generally applies where taxable net real estate wealth exceeds EUR 1.3 million on 1 January, subject to scope, debt and exemption rules.
| Taxable net real estate wealth band | Marginal IFI rate |
|---|---|
| Up to EUR 800,000 | 0% |
| Over EUR 800,000 to EUR 1,300,000 | 0.50% |
| Over EUR 1,300,000 to EUR 2,570,000 | 0.70% |
| Over EUR 2,570,000 to EUR 5,000,000 | 1% |
| Over EUR 5,000,000 to EUR 10,000,000 | 1.25% |
| Over EUR 10,000,000 | 1.50% |
Although the progressive scale starts at EUR 800,000, the liability threshold is EUR 1.3 million. A discount may apply to taxable net wealth between EUR 1.3 million and EUR 1.4 million. See IFI eligibility and IFI calculation.
7. Historical French income tax rates for 2017-2018
The original page addressed 2017 income and the 2018 assessment. The following historical brackets are retained to distinguish those rules from current law.
| 2017 taxable income per tax share | Historical marginal rate |
|---|---|
| Up to EUR 9,807 | 0% |
| Over EUR 9,807 to EUR 27,086 | 14% |
| Over EUR 27,086 to EUR 72,617 | 30% |
| Over EUR 72,617 to EUR 153,783 | 41% |
| Over EUR 153,783 | 45% |
In that period, the standard corporate income tax rate was generally 33.33%, with reduced rates available for qualifying profits and companies. The old small-company 15% band was EUR 38,120; a 28% band applied under transitional conditions. The 2017-era article also referred to social levies of 15.5% on real estate gains and older non-resident withholding rates, which must not be treated as current rules. French VAT's main metropolitan rates of 20%, 10%, 5.5% and 2.1% were already established, subject to product-specific classifications.
8. Official French tax resources
For the latest legislation, administrative interpretations, deadlines and treaty rules, consult Direction générale des Finances publiques, BOFiP administrative tax doctrine, Légifrance statutory law and Service-Public.fr. The tax treatment of a particular taxpayer depends on the relevant tax year and facts.
Information updated 23 October 2026. This guide is general information and is not individual legal or tax advice. Verify official instructions for the particular filing year.