A Guide to French Income Tax: What You Need to Know in 2025
As the French income tax season begins, residents must prepare to submit their annual returns between April and early June. While springtime in France offers scenic beauty and outdoor enjoyment, it also brings the responsibility of tax reporting.
Key Dates for Filing
The online platform for income declarations opens on 10 April. Most taxpayers are required to file online unless it’s their first time or they have a valid reason for submitting a paper return. Anticipated deadlines are:
20 May – Paper returns
22 May – Départements 1–19 and non-residents with French income
28 May – Départements 20–54
5 June – Départements 55–101
Early preparation is advised, especially for those with multiple income sources, international earnings, or property holdings. Assets held abroad and foreign bank accounts must be disclosed, even if they generated no income. Individuals with net property wealth above €1.3 million must also file a real estate wealth tax return.
Understanding the French Tax System
Unlike individual taxation systems such as in the UK, France taxes income at the household level using the quotient familial or “parts” system. Total household income is divided by the number of fiscal parts (based on marital status and dependents), then taxed according to income brackets. The result is multiplied back to determine the final tax owed, often reducing the burden for families with children.
2024 Income Tax Bands (2025 Declaration)
| Net Taxable Income | Rate |
|---|---|
| Up to €11,497 | 0% |
| €11,498–€29,315 | 11% |
| €29,316–€83,823 | 30% |
| €83,824–€180,294 | 41% |
| Over €180,294 | 45% |
An additional tax applies to high earners: 3% on income above €250,000 for singles and €500,000 for couples, and 4% beyond €500,000 or €1 million, respectively. In 2025, this surcharge has been reinforced to ensure a minimum effective tax rate of 20% for the highest earners.
Income Tax Allowances and Deductions
Certain deductions apply to pensioners, individuals with disabilities, and those receiving military pensions. Retirement and alimony income also benefit from a 10% deduction, subject to limits. Tax credits may be available depending on your situation but require careful evaluation due to their complexity.
Social Charges: A Parallel System
Separate from income tax, social contributions finance public welfare but not health coverage. These charges apply to:
Employment income: 9.7%
Pensions: 9.1% (or 7.4% for low-income retirees)
Investment income: 17.2% (reduced to 7.5% for those under a foreign health system)
Non-residents covered by an EU/EEA health agreement or holders of an S1 certificate may benefit from lower rates.
Social charges are usually calculated based on declared income, with amounts due later in the year.
Tax on Investment Income
Investment earnings (interest, dividends, capital gains) are generally taxed at a flat rate of 30%, known as the Prélèvement Forfaitaire Unique (PFU). This rate includes both income tax and social charges. Those covered by a foreign healthcare system may see a reduced rate of 20.3%.
Lower-income households can opt for progressive taxation instead, though social charges remain separate.
Declaring UK and Foreign Income
French residents are taxed on global income and must report all earnings, including those from the UK. However, tax treaties prevent double taxation. Some UK-sourced income, like government service pensions or rental income, remains taxable only in the UK, though it must still be declared in France for transparency.
Capital gains from UK real estate may be taxed in both countries, with a credit granted in France for tax already paid abroad.
Planning Ahead
France’s tax system differs significantly from others, and strategies that worked in the UK may not apply. Effective tax planning in France involves reevaluating how you manage savings, pensions, and investments within the local framework. Thoughtful structuring can help reduce liabilities and support long-term financial goals, including estate planning.
Note: Tax rules and thresholds are subject to change. This overview is intended for informational purposes. Always seek professional, personalised advice when managing your tax affairs.
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