How income tax works in France
French tax residents are taxed on worldwide income. Non-residents are taxed on French-source income only. Residence is based on domestic tests such as household (foyer), principal place of stay, main professional activity or centre of economic interests, not only a 183-day count.
Income tax is assessed on the household using the family quotient. Taxable income is divided into shares, the progressive scale is applied to each share, then the result is multiplied back by the number of shares. That is why two households with the same gross income can face very different bills.
Employees usually pay through monthly withholding at source (prélèvement à la source). Self-employed people and many residents still file an annual return and settle differences by assessment. Social charges on employment income sit beside income tax and often dominate the real take-home calculation.
Income tax brackets in France
| Bracket | Rate | Notes |
|---|---|---|
| Up to EUR 11,600 | 0% | Per household share, 2025 income / 2026 scale |
| EUR 11,601 to EUR 29,579 | 11% | First taxable band |
| EUR 29,580 to EUR 84,577 | 30% | Middle band |
| EUR 84,578 to EUR 181,917 | 41% | Upper band |
| Above EUR 181,917 | 45% | Top marginal rate before CEHR |
Tax rates at a glance
- Tax-free band
- EUR 11,6002026 scale
- Entry rate
- 11%
- Top rate
- 45%
- Exceptional high-income contribution
- 3% / 4%
- Employment social charges
- Material
- Investment flat tax (PFU)
- 31.4%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
EmployeesExpatsContractorsHigh earnersCross-border workers
Watch out for
- The brackets above are applied per share of the family quotient, not automatically to the household’s full gross income. Married or civil-partnership households and dependent children change the math.
- Social charges are separate from income tax. On salaries they are shared between employer and employee; on many investment items they form part of the 31.4% PFU from 2026.
- High earners can face the exceptional contribution on high incomes (CEHR) at 3% and 4% once reference income crosses the statutory thresholds.
- Non-residents can face minimum withholding rates on French-source employment or business income, so treaty residence and source rules still need checking.
Frequently asked questions
Do expats pay income tax in France?
Yes, if they are French tax residents or have French-source income. Residents are taxed on worldwide income; non-residents are taxed on French-source income only.
What is the top income tax rate in France?
The top progressive rate is 45% for 2025 income declared under the 2026 scale, before the exceptional high-income contribution and before social charges.
Is salary taxed differently from investment income?
Yes. Employment and business income generally go through the progressive scale and payroll or assessment rules, while many dividends, interest and securities gains default to the 31.4% PFU unless you elect the progressive option.