France Income Tax Rates: 2018-2019 Historical Slabs and Updated 2026 Rules
France taxes individuals under a progressive income tax system, while qualifying companies are generally subject to corporate income tax. This guide retains the historical 2018 income tax information and explains the more recent rules applicable to income earned in 2025 and assessed in 2026.
1. Historical French personal income tax rates for income earned in 2018
For 2018 income, generally declared in 2019, the progressive income tax bands per tax share were:
| Taxable income per share (EUR) | Marginal rate |
|---|---|
| Up to 9,964 | 0% |
| 9,965 to 27,519 | 14% |
| 27,520 to 73,779 | 30% |
| 73,780 to 156,244 | 41% |
| Above 156,244 | 45% |
These are the bands for 2018 income, not the older 2017-income bands sometimes reproduced on historical tax pages. Rates are marginal, and the quotient familial system adjusts tax calculation according to household composition.
2. French personal income tax rates in 2026 (2025 income)
The 2026 income tax schedule, established for income received in 2025, is progressive under Article 197 of the French General Tax Code (Code général des impôts, CGI).
| Taxable income per tax share (EUR) | Marginal rate |
|---|---|
| Up to 11,600 | 0% |
| 11,601 to 29,579 | 11% |
| 29,580 to 84,577 | 30% |
| 84,578 to 181,917 | 41% |
| Above 181,917 | 45% |
The tax share is determined by the household's quotient familial, with limitations on the tax benefit for dependants. A taxpayer does not pay the highest marginal rate on all income. See the official 2026 income tax schedule and the official calculation explanation.
Employment deductions and pension contributions
Employment income generally benefits from a standard 10% professional-expense deduction, subject to the applicable annual minimum and ceiling. Where permitted, actual documented professional expenses may be claimed instead. Eligible retirement savings contributions may be deductible within individual statutory limits. The historical EUR 12,305 ceiling should not be applied automatically to 2026 income.
Declaration and payment
France has applied prélèvement à la source (income tax withholding at source) since 2019. Salary withholding and instalments for other income generally operate throughout the year, followed by an annual income declaration and reconciliation. The former fixed February, May and September payment timetable is not a general current rule. Refer to the French tax administration for filing deadlines applicable to your department and filing method.
3. Tax residency, residents and non-residents
Article 4 B CGI provides alternative tests for French fiscal domicile, including having a household or principal place of stay in France, carrying on a principal professional activity there (subject to exceptions), or having the centre of economic interests there. The frequently mentioned 183-day test is not the only criterion; tax treaties can resolve conflicting residence claims.
Under Articles 4 A and 164 B CGI, French tax residents are generally taxable on worldwide income, whereas non-residents are generally taxed on taxable French-source income, subject to applicable double-tax treaties. Foreign tax credits or exemptions are not automatic in every case.
Article 197 A CGI provides a minimum-rate framework for non-residents, generally 20% and 30% for the applicable bands, subject to treaty provisions and the option to demonstrate a lower effective worldwide-income rate. See official non-resident tax calculation guidance.
Inheritance and gift taxes have their own connecting rules under Article 750 ter CGI; they should not be treated as identical to income-tax residence rules.
4. Corporate income tax in France
French corporate income tax (impôt sur les sociétés, IS) is governed principally by Articles 206 and 219 CGI. The general rate is 25% for financial years beginning on or after 1 January 2022. Eligible smaller companies may benefit from a reduced 15% rate on the first EUR 42,500 of taxable profit, subject to turnover, ownership and fully paid-up capital conditions.
| Current corporate tax category | Rate |
|---|---|
| General taxable company profits | 25% |
| First EUR 42,500 of profit of an eligible small company | 15% |
| Eligible small company profits above EUR 42,500 | 25% |
For historical context, 2018 corporate taxation generally involved a 28% band on the first EUR 500,000 of profits and a 33 1/3% standard rate above that band, subject to special rules and reduced SME rates. These historical rates are no longer the general rates. Certain larger businesses may also be subject to additional contributions or temporary measures. See French corporate tax guidance.
5. Value added tax (VAT) in France
French VAT (taxe sur la valeur ajoutée, TVA) is governed by the CGI, including Articles 278 and following. The standard rate in metropolitan France is 20%. Reduced rates of 10% and 5.5% apply to eligible categories, while a special 2.1% rate applies to narrowly defined transactions.
| VAT rate | Typical scope (subject to conditions) |
|---|---|
| 20% | General goods and services |
| 10% | Many passenger transport, restaurant, hotel and qualifying renovation services |
| 5.5% | Qualifying essential foods, books and certain energy-saving works |
| 2.1% | Specified medicines, press and other narrowly defined supplies |
Specific territories and goods may have different rules. Consult official business tax guidance before applying a reduced rate.
6. Capital gains tax on French property and investments
French real-estate capital gains
Capital gains on privately held French real property are generally subject to a 19% income tax component under Article 200 B CGI, together with applicable social levies. The social levy position can vary, including for certain individuals covered by social security systems in the EEA or Switzerland. Treaty provisions and specific exemptions must also be considered.
Under Article 150 U CGI, the sale of a qualifying principal residence can be exempt. The taxable gain is generally determined by deducting qualifying acquisition costs and improvement expenditure from sale proceeds, with statutory adjustments. Subject to conditions, a 7.5% acquisition-cost allowance may replace actual acquisition expenses and a 15% improvement allowance may be available for property held for more than five years. Ownership-duration allowances can reduce the taxable gain, with full income-tax exemption generally after 22 years and full social-levy exemption generally after 30 years.
An additional graduated tax of up to 6% may apply to certain taxable real-estate gains exceeding EUR 50,000 under Article 1609 nonies G CGI, with smoothing mechanisms at certain thresholds.
Non-resident real-estate disposals may trigger withholding and representative requirements, subject to exceptions. The former blanket 33.33% non-resident rate should not be used as a current general rule.
Securities and financial investments
Gains from securities held outside special tax wrappers may fall under the flat-tax regime (prélèvement forfaitaire unique) or an election for progressive taxation, with the applicable income-tax and social-contribution components determined by the year and the taxpayer's circumstances. Property gains and securities gains must not be conflated.
7. French wealth tax: IFI rather than the former ISF
Since 1 January 2018, France has generally applied the impôt sur la fortune immobilière (IFI), a real-estate wealth tax, in place of the former broad-based impôt de solidarité sur la fortune (ISF). IFI is governed by Articles 964 and following CGI. The filing threshold is generally EUR 1.3 million in taxable net real-estate wealth; once liable, the scale begins at EUR 800,000.
| Net taxable real-estate wealth band (EUR) | Marginal IFI rate |
|---|---|
| Up to 800,000 | 0% |
| 800,000 to 1,300,000 | 0.50% |
| 1,300,000 to 2,570,000 | 0.70% |
| 2,570,000 to 5,000,000 | 1.00% |
| 5,000,000 to 10,000,000 | 1.25% |
| Above 10,000,000 | 1.50% |
Residency, qualifying real-estate assets, deductible liabilities, exemptions and reliefs affect the calculation. The old description of a tax on all worldwide net wealth is therefore inaccurate for the present IFI regime.
8. Official legal references and further reading
- French General Tax Code (CGI), consolidated legislation
- 2026 personal income tax bands - Service Public
- Corporate income tax - French tax authority
- Non-resident income tax calculation - French tax authority
- French tax administration: returns, deadlines and guidance
This article is general legal and tax information, not a substitute for professional advice. Annual budgets, special regimes and tax treaties may change the result for a particular taxpayer.