Fact sheet: French tax resident

Date of update

Tax residency is not a matter of choice; it depends on internal regulations or reciprocal agreements and treaties. Please find helpful information on our page Determining your tax residency.

Residents of France are taxed on the entirety of their income earned from French sources or from foreign sources.

The professional income of a French tax resident will be subject to withholding tax. See our fact sheet on withholding tax .

Some French tax residents are eligible to the special expatriates’ tax regime.

People resident in France for income tax purposes must file an annual income declaration, either online or by completing a paper copy of the form. Feel free to consult our fact sheet “Tax residents, declare your income”.

 

How is tax calculated ?

Tax is calculated on the basis of the combined incomes of the household.

Income to be declared may come from various sources (wages, salaries and allowances,  pension annuities, property income, etc.).

The household’s total income is divided by the number of household units, as follows:

  • One unit for each adult.
  • One half-unit for each of the first two children.
  • One unit for each child thereafter.

 

The effective tax rate on total household income is thereby determined on the basis of the size of the household.

For further details, please have a look at impots.gouv.fr

 

What tax rates apply?

A French tax resident’s income is taxed at progressively higher rates. With a sliding tax scale, a specific rate applies to each taxable income bracket.

2020 Income tax rate table on 2019 income
Taxable income brackets Tax rate to apply
Up to 10 064 € 0 %
From 10 065 € to 27 794 € 14 %
From 27 795 € to 74 517 € 30 %
From 74 518 € to 157 806 € 41 %
More than 156 807 € 45 %

Source: impots.gouv

Withholding tax

With the introduction of withholding tax, tax rates can be applied individually depending on each spouse’s income, if the person in question is married or in a civil partnership.

If no declaration has been filed, the rate applicable is the neutral rate.

This neutral rate is determined according to a specific tax schedule which does not take into account the circumstances, income and expenses of families.

If it is not appropriate it may be adjusted upwards or downwards, in which case the new rate is communicated to the employer, who must apply it within a maximum of two months.

See our fact sheet

 

Tax simulator

An income tax simulator can be consulted online to determine whether or not you are a tax resident, and to estimate the amount of tax due.

Source : https://www.impots.gouv.fr/portail/