Quick answer
France taxes its residents on worldwide income and non-residents on French income only. In 2026, income tax runs from 0% to 45%, plus social contributions of about 22% on salaries and 18.6% on most investment income. Companies pay 15% then 25%, VAT is 20%, and wealth tax only hits real estate above EUR 1.3 million.
Last reviewed: November 2026 · Reviewed by Stéphane Gombauld, tax expert, technologist and digital nomad
Heavnn
Stay tax compliant, wherever you work
Answer a few questions and get a clear plan for your own situation.
Check my tax setup →You are thinking of moving to France, leaving it, or running a business there while living a mobile life. This page gives you the whole French tax system in one read, with the 2026 figures and a link to the detailed guide for each topic.
France tax landscape in 2026: the key figures
| Item | Rule for 2026 |
|---|---|
| Residence | Any one of four tests in article 4 B of the Tax Code; no 183-day rule |
| Scope | Residents: worldwide income. Non-residents: French-source income |
| Income tax | 0%, 11%, 30%, 41%, 45% above about EUR 181,900 (2025 income) |
| Investment income | 31.4% flat tax: 12.8% income tax + 18.6% social levies |
| Corporate income tax | 15% up to EUR 42,500 for qualifying SMEs, 25% above |
| VAT | 20% standard; 10%, 5.5% and 2.1% reduced |
| Wealth tax (IFI) | Net real estate above EUR 1.3 million; 0.5% to 1.5% |
| Tax year and filing | Calendar year; online return in May–June of the next year |
Is this guide for you?
Read on if you…
- want a clear map of French taxes before moving in, moving out or investing;
- are a freelancer, remote employee or founder with ties to several countries;
- need to know which detailed French guide answers your question.
Probably not your case if you…
- already know your situation and need one detail. Jump to the France tax guides list below;
- run a large group with outside investors. You need tailored advice.
How does the French tax system work?
France taxes on residence, not citizenship. You are French tax resident if any one of four tests applies: your household is in France, you spend most of your time there, your main work is there, or your centre of economic interests is there. No minimum day count exists in domestic law. Our guide to tax residency in France covers each test.
Residents pay tax on worldwide income. Non-residents pay only on French-source income, with a minimum rate of 20%, then 30% above a threshold. Treaties can shift these rules.
Tax is collected by withholding at source (prélèvement à la source) on salaries, pensions and as monthly instalments for freelancers. You then file an annual return in spring. The tax office sends a final assessment in the summer.
France taxes the household (foyer fiscal), not the individual. Married and PACS couples file jointly. The family quotient (dividing income by a number of "parts" for each household member) lowers the rate for families.
What are the main taxes in France?
| Tax | Who pays | 2026 rate or rule |
|---|---|---|
| Income tax | Residents on worldwide income, non-residents on French income | Progressive 0% to 45%, plus 3–4% above EUR 250,000 (single) |
| Social contributions on pay | Employees and employers | About 22% employee side, 40–45% employer side |
| Self-employed contributions | Freelancers and majority managers | About 45% of profit; micro: 12.3% to 26.1% of turnover |
| Social levies on investment income | Residents | 18.6% (17.2% on rental income and property gains) |
| Capital gains tax | Residents; non-residents on French property | 31.4% on securities; 19% + levies on property |
| Corporate income tax | Companies | 15% up to EUR 42,500, then 25% |
| VAT | Businesses, charged to customers | 20% standard |
| Wealth tax (IFI) | Owners of real estate above EUR 1.3 million net | 0.5% to 1.5% |
| Inheritance and gift tax | Heirs and recipients | 5% to 45% for children after EUR 100,000 allowance; up to 60% for others |
| Local taxes | Owners; second-home occupants | Set by each commune |
Rates and details for property, wealth and inheritance taxes are in our guide to specific taxes in France.
How is investment income taxed?
Dividends, interest and share gains bear the flat prélèvement forfaitaire unique (PFU) of 31.4% in 2026. You can opt for the progressive scale instead. A PEA share account shields gains from income tax after five years. Crypto gains bear 12.8% plus social levies. Details: capital gains tax in France.
Which deductions lower your bill?
Employees get an automatic 10% allowance for work costs. Pension savings (PER), home help, childcare and donations bring further deductions or credits. See our guide to personal tax deductions and benefits in France.
Are there special regimes for newcomers?
France has no flat tax and no non-dom regime. Its main incentive is the impatriate regime: for up to eight years, employees and executives recruited from abroad can exempt their impatriation bonus, often a flat 30% of pay. They also exempt 50% of certain foreign investment income. You must not have been French resident in the five previous years.
New residents also skip the IFI on property held abroad for five years. There is no digital nomad visa. Read our guide to tax incentives for expats and digital nomads in France.
What should you know about moving in and moving out?
Moving in
You become resident from the day you meet one of the four tests. Worldwide income is taxed from that date, not from 1 January. You file your first return in spring of the following year. Health cover (PUMa) opens after three months of stable residence. Our practical guide to obtaining tax residency in France gives the full move plan.
Moving out
Leaving means breaking all four tests, not only moving your address. If you hold more than 50% of a company or shares worth over EUR 800,000, an exit tax of 31.4% applies to unrealised gains, usually deferred within the EU. French property and French income stay taxable after you leave. See our practical guide to ceasing your tax residency in France.
When two countries claim you
France has about 120 tax treaties. They settle dual residence with a tie-breaker and decide who taxes each income. Our guide to France's international tax treaties explains how double tax relief works.
How are businesses taxed in France?
Most freelancers start as micro-entrepreneurs: social contributions and, optionally, income tax as a percentage of turnover, up to about EUR 83,600 of service revenue. Above that, or with high costs, a sole trader taxed on actual profit, or a company, makes more sense.
The favourite company forms are the SASU/SAS and the EURL/SARL, with capital from EUR 1. They pay corporate tax at 15% then 25%. Dividends to residents bear the 31.4% flat tax. Read legal forms of business in France and business expenses in France for what you can deduct.
Here's the catch for mobile founders. A French company managed from abroad, or a home office used abroad, can create tax presence in another country.
Compliance matters too. Deliberate errors cost a 40% penalty, fraud 80%, and foreign accounts must be declared every year. See tax fraud regulations in France.
Example – Emma, freelance consultant moving from Berlin to Paris
Emma arrives on 1 April 2026 and becomes French resident that day. She bills EUR 80,000 a year as a micro-entrepreneur in liberal services. Contributions are 26.1%, about EUR 20,900. Income tax is calculated on 66% of turnover after the 34% allowance, so EUR 52,800 for a full year. As a single person, that means income tax of roughly EUR 9,000 over a full year. Her German income from January to March stays outside French tax. Her Spanish ETF portfolio becomes taxable at 31.4% on gains realised after 1 April.
Emma's French setup has five moving parts. Yours probably does too.
We map your residence, income, business and investments against France's 2026 rules.
Check my tax setup →Common mistakes (and what they cost)
- Thinking fewer than 183 days keeps you non-resident → one test such as family or main work makes you resident, with full worldwide tax.
- Forgetting foreign accounts on form 3916 → EUR 1,500 per account per year, and a ten-year audit window.
- Leaving with large shareholdings without filing for the exit tax → 31.4% on unrealised gains plus penalties.
- Picking a structure for the tax rate alone → social contributions and cross-border presence often cost more.
- Missing the impatriate regime's five-year condition → no exemption for the whole eight-year period.
Frequently asked questions
What is the income tax rate in France in 2026?
Income tax is progressive: 0% up to about EUR 11,600 per part, then 11%, 30%, 41% and 45% above about EUR 181,900. Social contributions come on top: about 22% on salaries, and 18.6% on most investment income. High earners pay an extra 3% or 4% above EUR 250,000 for a single person.
Who is a tax resident in France?
Anyone meeting at least one of four tests: household in France, main place of stay in France, main professional activity in France, or centre of economic interests in France. There is no 183-day rule in French law. Residents are taxed on worldwide income, non-residents only on French-source income.
Does France have a wealth tax?
Only on real estate. The IFI applies when your net real estate exceeds EUR 1.3 million on 1 January, at 0.5% to 1.5%. Shares, cash and crypto are outside its scope. Residents count property worldwide, after a five-year exemption on foreign property for newcomers. Non-residents count only French property.
Is France a good country for digital nomads tax-wise?
Not for low taxes. France has no nomad visa, no flat tax and no non-dom regime, and taxes residents on worldwide income. It suits people who want French life and services, and employees recruited from abroad who can use the impatriate regime. Short stays without becoming resident do not trigger French tax on foreign income.
How are companies taxed in France?
Corporate income tax is 25%, with a reduced 15% on the first EUR 42,500 of profit for qualifying small companies. Dividends paid to resident individuals bear the 31.4% flat tax. VAT is 20% by default. Companies also pay local business taxes such as the CFE.
When do I file my French tax return?
The return covers the calendar year and is filed online in spring of the following year. Deadlines run from late May to early June depending on your département. Non-residents file by the same calendar. Tax is mostly prepaid through withholding at source, and the final bill or refund arrives in the summer.
France tax guides
- Tax residency in France – the four residence tests and treaty tie-breakers.
- Practical guide to obtaining your tax residency in France – your step-by-step move plan.
- Practical guide to ceasing your tax residency in France – leaving cleanly and the exit tax.
- Personal tax deductions and benefits in France – family quotient, credits and allowances.
- Capital gains tax in France – shares, crypto and property, and how to pay less.
- Tax incentives for expats and digital nomads in France – the impatriate regime and visas.
- Specific taxes in France – IFI, inheritance, property and local taxes.
- Legal forms of business in France – micro, EURL, SASU and more compared.
- Business expenses in France – what you can deduct, by structure.
- International tax treaties of France – who taxes what across borders.
- Tax fraud regulations in France – penalties, audits and correcting mistakes.
Related guides
- Germany tax landscape overview
- Austria tax landscape overview
- Switzerland tax landscape overview
- Tax residency in France
- Tax incentives for expats and digital nomads in France
- All country tax guides
Sources
- impots.gouv.fr – French tax administration
- Légifrance – General Tax Code (CGI)
- BOFiP – Official tax doctrine
- Service-public.fr – Official administration portal
- URSSAF – Social contributions
- OECD – Tax policy and statistics: France
This guide is general information, not personalised tax advice. See how we research and review.
Check your whole French tax setup in one go
Tell us where you live, work and invest, and we will show you what France really takes, and what you can change.
Start with Heavnn →
