Income and Tax – How Income Tax Is Calculated in France

Directorate for Legal and Administrative Information (Prime Minister)

Do you want to understand how this amount is calculated in France? Income tax is based on a progressive scale. The initial gross tax is calculated first, then adjusted to determine the final net tax payable.

You can estimate your tax liability using the official online simulator:

2025 Calculator Simulator: 2024 Income Tax

You may also review the online tax return brochure and the explanatory notice. These documents include a worksheet that helps you calculate your tax step by step.

Below is a clear breakdown.

Determine Your Overall Gross Income

Start by identifying and totaling your income by category, including:

• Taxable net salary

• Pensions and retirement income

• Business income:

  • Industrial and commercial profits (BIC)

  • Non-commercial profits (BNC)

  • Agricultural profits (BA)

• Rental (property) income

• Investment income and capital gains on securities

• Real estate capital gains

⚠️ Important: Certain deductions may apply to specific income categories, especially professional expenses.

Example:

A single taxpayer declares €30,000 in taxable net salary as their only income.

If they choose the standard 10% deduction for professional expenses:

€30,000 – (€30,000 × 10%) = €27,000

Their total gross income becomes €27,000.

Calculate Your Overall Net Income: Income and Tax

Overall net income is calculated as follows:

Total gross income – deductible expenses

Deductible expenses may include:

• Child support payments (for minor or adult children)

• Financial support paid to a parent

• Alimony paid to a former spouse

• Housing costs for an elderly dependent

• Contributions to retirement savings plans

Calculate Your Net Taxable Income

Net taxable income is determined by:

Total net income – specific allowances

You may qualify for a special allowance in the following cases:

• You are 65 years old or older

• You have a recognized disability

• You attach to your household a married child, a child in a civil partnership, or a child with family responsibilities

These allowances reduce the amount of income subject to income tax.

Determine Your Gross Income Tax

The calculation follows several stages.

Determine the Number of Tax Shares

The number of tax shares depends on your personal and family situation:

• Single individual

• Cohabiting couple

• Married couple or former couple

It also considers dependents:

• Minor children

• Adult children

• Children with disabilities

• Disabled dependents

Calculate the Family Quotient

The family quotient is calculated as:

Net taxable income ÷ Number of tax shares

Example:

A couple is entitled to 2 tax shares.

If their net taxable income is €30,000:

€30,000 ÷ 2 = €15,000

Their family quotient is €15,000.

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Apply the Progressive Income Tax Scale (2024 Income)

The progressive income tax brackets for 2024 income are:

The marginal tax rate (MTR) is the rate applied to the highest portion of your income.

The average tax rate represents the overall percentage of your income paid as tax.

Example: Single Taxpayer (One Tax Share): Income and Tax

A single individual with:

• Net taxable income: €30,000

• No reductions or additional deductions

Family quotient: €30,000

Tax calculation:

• Up to €11,497 → 0%

• €11,498 to €29,315 → (€29,315 − €11,497) × 11%
  = €17,818 × 11% = €1,959.98

• €29,316 to €30,000 → (€30,000 − €29,315) × 30%
  = €685 × 30% = €205.50

Total gross income tax:
€0 + €1,959.98 + €205.50 = €2,165.48

The marginal tax rate is 30%, since part of the income falls within that bracket. However, not all income is taxed at 30%.

Example: Married or Former Couple Without Children (Two Tax Shares):

• Net taxable income: €60,000

• Household with 2 tax shares

Family quotient:

€60,000 ÷ 2 = €30,000

Tax per share:

• Up to €11,497 → 0%

• €11,498 to €29,315 → €1,959.98

• €29,316 to €30,000 → €205.50

Gross tax per share:
€0 + €1,959.98 + €205.50 = €2,165.48

Since the household has 2 shares:

€2,165.48 × 2 = €4,330.96

The couple’s marginal tax rate is 30%, because their family quotient falls within that bracket. However, not all their income is taxed at 30%.