United States vs France taxes (2026): income, IFI and exit tax

United States vs France tax rates at a glance

Tax	🇺🇸 United States	🇫🇷 France
Income tax	Personal income tax: 10% - 37% Social Security: 6.2% Medicare: 1.45% Additional Medicare: 0.9% State income tax: Varies	Tax-free band: EUR 11,600 Entry rate: 11% Top rate: 45% Exceptional high-income contribution: 3% / 4% Employment social charges: Material Investment flat tax (PFU): 31.4%
Corporate tax	C corporation tax: 21% CAMT: 15% Pass-through entities: Different State tax: Varies	Standard corporate tax: 25% SME reduced rate: 15% on first EUR 42,500 Social contribution on CIT: 3.3% IP Box reduced rate: 10% QDMTT / Pillar Two: 15%
Capital gains tax	Long-term capital gains: 0% - 20% Short-term capital gains: 10% - 37% Qualified dividends: 0% - 20% NIIT: 3.8%	Securities PFU: 31.4% PFU income-tax component: 12.8% PFU social levies: 18.6% Real-estate income tax: 19% Full property IR exemption: 22 years Full property social exemption: 30 years
Dividend tax	Qualified dividends: 0% - 20% Ordinary dividends: 10% - 37% NIIT: 3.8% State tax: Varies	Resident PFU total: 31.4% PFU income tax: 12.8% PFU social levies: 18.6% Non-resident individual WHT: 12.8% Progressive election: Optional Common dividend allowance on progressive route: 40%
Wealth tax	Net wealth tax: 0% Property tax: Varies Estate tax: Up to 40% Gift tax: Up to 40%	General net wealth tax: 0% IFI threshold: EUR 1,300,000 EUR 800,001 to EUR 1,300,000: 0.50% EUR 1,300,001 to EUR 2,570,000: 0.70% EUR 2,570,001 to EUR 5,000,000: 1.00% EUR 5,000,001 to EUR 10,000,000: 1.25% Above EUR 10,000,000: 1.50%
Inheritance / estate tax	Federal inheritance tax: 0% Federal estate tax: Up to 40% Federal gift tax: Up to 40% Basic exclusion: $15,000,000	Spouse / PACS partner: Exempt Children / parents: 5% - 45% Child allowance: EUR 100,000 Siblings: 35% / 45% Distant relatives / unrelated: 55% / 60%
VAT / GST / sales tax	Sales tax: Varies by state	VAT: 20% / 10% / 5.5% / 2.1%
Real-estate wealth tax	No federal net wealth tax; local property tax still applies	IFI 0.5% to 1.5% above EUR 1.3 million net taxable real estate
Exit / residence	Citizenship-based worldwide tax continues after leaving	Exit tax on certain shareholdings; residence is not only 183 days

Who wins on each tax

Personal income taxUnited States

The U.S. federal top ordinary rate is 37% before state tax; France's IR scale reaches 45% before high-income surtax and social charges.

Corporate taxUnited States

U.S. C corporations pay 21% federally plus possible state tax; France's general corporate rate is 25%, with 15% on the first EUR 42,500 for qualifying SMEs.

Capital gains taxUnited States

U.S. long-term federal rates are 0% to 20%; France generally applies a 31.4% PFU to securities gains.

Wealth taxUnited States

The U.S. has no federal net wealth tax; France's IFI taxes non-professional real estate above EUR 1.3 million at 0.5% to 1.5%.

VAT / sales taxUnited States

The U.S. has no federal VAT; France's standard mainland VAT is 20%.

The verdict

The United States is usually lighter for investment income and has no federal net wealth tax. Federal long-term gains and qualified dividends are generally 0% to 20%, versus France's 31.4% PFU on most securities income from 2026. Ordinary federal income tax tops at 37% before state tax; French IR reaches 45% plus a 3% / 4% high-income surcharge and heavy social charges.

France's distinctive costs are IFI and exit. IFI taxes non-professional real estate when net taxable real-estate wealth exceeds EUR 1.3 million, at 0.5% to 1.5%. Leaving France can trigger exit tax on unrealised share gains once ownership or value thresholds are met. French residence is not only a 183-day count; household, principal stay, main activity or centre of economic interests can all create residence.

Choose the United States for financial wealth, long-term gains and U.S. market access. Choose France for an EU life or a French operating business, not as a tax-down move. U.S. citizens still file after they become French residents.

How to read this comparison

France is expensive in a specific way. It is not only a 45% income-tax country. It is a social-charge, real-estate-wealth and exit-tax country. The United States is expensive in a different way: citizenship-based worldwide tax plus whatever the state adds.

Start with income. U.S. federal ordinary rates run from 10% to 37%. French IR is progressive from 0% to 45% on the household share after the family quotient, and high earners can face an extra 3% or 4% contribution. Employment social charges in France often matter as much as the income-tax band. A U.S. state income tax can narrow the gap, but it rarely turns France into the lighter payroll answer.

Investment income is clearer. From 2026, France's prélèvement forfaitaire unique is 31.4% on most dividends, interest and securities gains, made up of 12.8% income tax and 18.6% social levies, with an option to elect the progressive scale instead. U.S. long-term gains and qualified dividends generally use 0%, 15% or 20% federally. Short-term U.S. gains are ordinary income, so a trader does not get that federal preference.

IFI is the French wealth overlay. There is no general French tax on financial net worth, but non-professional real estate above EUR 1.3 million is in scope at 0.5% to 1.5%. U.S. property tax is local and annual, yet it is not a federal wealth tax on worldwide homes. A U.S. person who buys a Paris apartment and becomes French-resident can pick up IFI on top of U.S. filing.

Residence and exit close the trap. French domestic tests look at household, principal place of stay, main professional activity or centre of economic interests. Spending 183 days in France is a warning light, not the only switch. When you leave, exit tax can crystallise unrealised share gains. Meanwhile a U.S. citizen who becomes French-resident has not left the IRS. Corporate tax is 25% in France against 21% U.S. federal, with a 15% SME band on the first EUR 42,500. Standard VAT is 20%. Inheritance tax can reach 60% for distant heirs.

The useful plan is dual-system, not rate shopping. Model IFI, PFU, social charges, French exit tax, U.S. citizenship tax and the state you are leaving before you count days in France.

Which one fits you

🇺🇸 Choose United States if you're a…

Investors with listed portfolios rather than French property
Founders who need U.S. capital markets
People who can live in a low-tax U.S. state

🇫🇷 Choose France if you're a…

Households whose centre of life is France
Qualifying SMEs using the 15% first-band corporate rate
People who accept IFI as the price of French real estate

Frequently asked questions

Is France higher tax than the United States?

Usually yes for salary, securities income and real-estate wealth. The U.S. result can worsen in a high-tax state, and U.S. citizens remain taxable worldwide after a move to France.

Does France tax worldwide assets?

French residents are generally taxed on worldwide income. IFI generally covers worldwide non-professional real estate for residents, while financial assets are outside IFI unless they are real-estate rich.

What is French exit tax?

Leaving France can tax unrealised gains on shareholdings that cross statutory value or ownership thresholds. Deferral is possible only in qualifying cases.