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Employer Taxes in France: Payroll Tax Explained

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One key component of employer taxes in France is the payroll tax. This tax is applicable to employers who are not liable for VAT and operate in metropolitan France or an overseas department. It is calculated on the annual remuneration paid, using a progressive rate scale.

Explore related content: Learn more about calculating the French real estate wealth tax (IFI).

Who Is Liable for the Payroll Tax?

The payroll tax applies to any employer based or domiciled in France, regardless of where the employee lives or works, if any of the following conditions are met:

  • The employer is not liable for VAT in the year the salary is paid.

  • The employer is partially subject to VAT and, in the previous year, had less than 90% of turnover taxed.

  • The employer had less than 10% of turnover subject to VAT in the year before paying wages.

Employers Typically Affected Include:

  • Professionals in liberal occupations

  • Public establishments (excluding municipal groups)

  • Banks, insurance firms, stockbrokers, and financial institutions

  • Social or administrative bodies (profit or nonprofit associations)

  • Companies with civil (non-commercial) activities such as real estate investment

  • Property owners

  • Cooperatives, mutual societies, and agricultural professionals

For more details, refer to the official page on payroll tax obligations.

Which Employers Are Exempt from Payroll Tax?

Some employers benefit from exemptions, such as:

  • Those with a turnover below the VAT exemption threshold (e.g. micro-entrepreneurs)

  • Government bodies and public administrations

  • Individuals hiring full-time in-home help or maternal assistants (part-time hires are excluded)

  • Certain agricultural employers, including livestock or educational farms

  • Institutions of higher education delivering State-recognized Master’s degrees (Bachelor +5)

  • Specific public sector organizations, including:

    • Public Cultural Cooperation Establishments (EPCCs)

    • Public Environmental Cooperation Establishments (EPCEs)

Note: As of 1 January 2024, payroll tax no longer applies to salaries paid by EPCEs.

How Is the Payroll Tax Calculated?

The tax is calculated based on the CSG (General Social Contribution) base for earned income, which includes:

Income Type Taxable?
Wages, bonuses, allowances, benefits in kind or in cash Yes
Artist-author income Yes
Parliamentary and employee allowances Yes
Guaranteed income for disabled workers Yes
Rental income from business premises Yes
Self-employed earnings Yes
Flat-rate deduction for professional expenses No
Replacement income (e.g. sick leave, work accidents) No
Employer-paid social security benefits No
Training fund contributions No
Industrial technical center wages No
Daily social security benefits No
Compensation for partial or temporary unemployment No
Apprentice salaries below 11% of SMIC (companies >10 employees) No
Apprentice salaries (companies <11 employees) No
Salaries of teachers at apprenticeship centers No
Earnings under employment support or CUI-CAE contracts No
Internship bonuses (exempt portion only) No

Important: Although some payments are exempt from payroll tax, they remain subject to CSG.

How to Determine the Taxable Base

Companies with less than 10% of their prior year’s turnover subject to VAT must apply a taxation ratio:

Formula:
Taxation Ratio (%) = (Non-VAT deductible revenue / Total revenue of year N-1) × 100

Example:

  • Year N taxable remuneration: €1,000

  • Year N-1 total revenue: €3,000

    • €1,600 from VAT-exempt activities

    • €600 VAT-taxable

    • €800 VAT-exempt but non-deductible

Taxation ratio: (1,600 + 800) / 3,000 = 80%
Taxable base = €1,000 × 80% = €800

Reminder: If the total payroll tax due is under €1,200, it is not payable, and no declaration is required.

Payroll Tax Rates

Three payroll tax rates apply progressively based on individual employee gross salaries:

Rate Percentage Annual Salary (2025) Monthly Salary (2025)
Standard Rate 4.25% Up to €9,147 Up to €762
First Increased Rate 8.50% €9,147 – €18,258 €762 – €1,522
Second Increased Rate 13.60% Above €18,258 Above €1,522

Example Calculation (2024 salary of €5,600/month):

  • Apply 4.25% on the full amount

  • Add 4.25% on the salary between €748 and €1,494

  • Add 9.35% on the portion exceeding €1,494

Result:
Payroll tax = [5600 × 4.25%] + [(1,494 – 748) × 4.25%] + [(5,600 – 1,494) × 9.35%] = €654

Taxable income and tax owed are rounded to the nearest euro.

Payroll Tax Discounts and Rebates

Discount for Employers

A discount applies if the annual payroll tax falls between €1,200 and €2,040:

Formula:
Discount = 0.75 × (€2,040 – actual tax)

This is also applicable monthly or quarterly:

  • Monthly tax between €100–€170 → Discount = 0.75 × (€170 – actual tax)

  • Quarterly tax between €300–€510 → Discount = 0.75 × (€510 – actual tax)

The final discounted amount should be entered on line A of form No. 2501 or 2501 K, and adjusted during annual settlement using form No. 2502.

Note: Rebates (as opposed to discounts) only apply to associations and are calculated based on income or property value.

How to Declare and Pay the Payroll Tax?

The reporting frequency depends on the tax amount paid the previous year.

If the tax was below €4,000:

  • File an annual declaration before 15 January of the following year using form No. 2502-SD, submitted electronically.

In Special Cases:

  • If the business is transferred or closed → Declare within 60 days

  • If the employer dies → Declare within 6 months

Important: Payment must be made electronically through the company’s professional tax account or an authorized EDI partner.

Final Notes on Employer Taxes 🧾

Understanding the payroll tax is crucial for any organization navigating employer taxes in France. Whether you’re running a small nonprofit, a university, or a financial institution, staying compliant requires careful attention to turnover, VAT liability, and applicable exemptions.

Calculating the French Real Estate Wealth Tax (IFI)

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The IFI applies to individuals whose net real estate assets exceed €1,300,000 on January 1 of the tax year. It’s levied using a progressive scale on your taxable property value, with a special discount (“décote”) for estates between €1.3 M and €1.4 M. After any eligible reductions, the total IFI due may also be capped. Below is an overview of the key rules.

Taxable Assets and Deductible Debts

Your IFI base is the net value of your real estate holdings—market value minus supporting debts—on January 1, 2025. You must substantiate any loan or mortgage balances you deduct.

  • Debts tied directly to taxable properties (e.g., purchase loans, renovation or expansion financing) are deductible.

  • If a company owns real estate, you may only deduct the company’s debt proportionate to its real estate assets.

  • Maintenance expenses you paid but have not been reimbursed by tenants by December 31 are also deductible.

  • Note: Occupant taxes (e.g., residence tax) and ongoing rental income taxes are not deductible. You can find full details on deductible items at the official government site: Service-Public – IFI details (external link).

Applying the Progressive IFI Scale

Once you have your net taxable property value, apply the following progressive rates:

Net Taxable Value (€) Rate
Up to 800,000 0 %
800,001 – 1,300,000 0.50 %
1,300,001 – 2,570,000 0.70 %
2,570,001 – 5,000,000 1 %
5,000,001 – 10,000,000 1.25 %
Above 10,000,000 1.50 %

Reminder: Although the scale starts at €800,000, you only become liable once your net wealth exceeds €1,300,000.

The IFI Discount (“Décote”)

If your net real estate assets fall between €1,300,000 and €1,400,000, you qualify for a fixed discount from the gross IFI:

mathematica
Décote = €17,500 – (1.25 % × Net Taxable Value)

Example:

  • Net taxable value: €1,350,000

  • Gross IFI = (500,000 × 0.5 %) + (50,000 × 0.7 %) = €2,500 + €350 = €2,850

  • Discount = €17,500 – (1.25 % × €1,350,000) = €625

  • Net IFI owed = €2,850 – €625 = €2,225

Tax Reductions for Charitable Donations

Donations to approved public-interest organizations can reduce your IFI by 75 % of the amount given, capped at €50,000 per year.

Plafond Mechanism (Capping the IFI)

If your total tax burden (IFI plus all income taxes paid in France and abroad for the previous year) exceeds 75 % of your global income, you can invoke the capping rule. Your IFI liability is reduced by the difference between:

  • (IFI + prior-year global income taxes)

  • 75 % of your prior-year global income

Example:

  • IFI for 2025: €1,000

  • 2024 income taxes paid in France & abroad: €7,000

  • Total = €8,000 (which is 80 % of €10,000 global income)

  • Excess over 75 % = 5 % of €10,000 = €500

  • New IFI due = €1,000 – €500 = €500

Annual Income Tax Return in France (2025)

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Who Needs to File an annual Income Tax Return?

If you live in France or your primary tax residence is in France, you are legally required to declare your income to the French tax authorities.

Note:
Even if you live abroad, if you earn income from French sources, you must still report those earnings in France.

You must submit your tax return even if your income is minimal or zero. Doing so allows you to:

  • Obtain a non-taxation notice, often required for accessing public assistance such as housing aid

  • Claim refunds for eligible tax credits, including those related to child care expenses at home or in external facilities

Each tax household (foyer fiscal) must file a single income tax return, which includes the earnings and deductible expenses of all members in that household.

How to File Your Annual Income Tax Return

You may file a paper tax return if:

  • You do not have internet access in your primary residence

  • You are unable to file online due to your personal situation

In that case, you will receive a pre-filled paper form by mail around April or May.

Depending on your case, you will need one or more of the following forms:

  • Form 2042 or 2042 C – general income declaration

  • Form 2042 RICI – for declaring tax credits and reductions

  • Form 2044 – for real estate income

  • Form 2074 – for capital gains from investments

  • Form 2047 – for foreign-earned income

If you don’t receive a form (e.g., first-time declaration, change of address or family situation), you can download the required documents starting late April/early May from the official French tax website.

Before signing and sending your declaration, verify all pre-filled information and make corrections or additions as necessary.

Attach supporting documents only if you have created them yourself (e.g., itemized expense lists). Other documents must be kept for three years in case the tax office requests them.

Important:
If you filed your taxes online or via the official mobile app in 2024, you will not receive a paper tax return in 2025. If you still need to declare on paper, you can request a pre-filled form from your local tax office.

When Is the Deadline?

For the 2024 income declaration, the paper return must be submitted no later than Tuesday, May 20, 2025, at 11:59 PM, including for French citizens living abroad.

Good to Know:
After submitting your return, you can still correct certain parts if needed.

Property Tax on Built Properties (TFPB) in France

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Property tax in France, officially known as the Taxe Foncière sur les Propriétés Bâties (TFPB), is a local tax imposed annually on property owners. It applies to residential, commercial, and industrial properties, and even some boats. Here’s everything you need to know to determine whether you’re liable, how it’s calculated, and whether you qualify for exemptions or relief.

For more detailed criteria, visit the official government service (external link).

If you’re looking for a complete source of reliable French tax information in English, check out Impot France – Your Official Source for Tax Information Online (internal link).

Who Must Pay Property Tax France?

Anyone who owns or has usufruct over a built property as of January 1 of the tax year is subject to property tax France (TFPB). This includes apartments, houses, and buildings used for business purposes.

Even if your property is rented out, you — as the owner — are still responsible for paying the tax.

Note:
If you sell your property under a life annuity contract but retain the right to live in it, the buyer becomes liable for the TFPB.

Who Can Be Exempt from Property Tax in France?

Seniors Receiving the ASPA

If you receive the Solidarity Allowance for the Elderly (ASPA), you may be exempt from property tax France on your primary residence. If you later lose eligibility, the exemption continues for two years, followed by a tapered reduction (two-thirds and then one-third) in the subsequent two years.

Disability Allowance Beneficiaries (ASI)

Recipients of the Supplementary Disability Allowance (ASI) qualify for the same TFPB exemption conditions as ASPA beneficiaries, including the continuation and gradual relief measures after the loss of eligibility.

Adults Receiving the AAH (Disabled Adults’ Allowance)

If you receive the AAH and your reference income is below the legal threshold (based on your family situation and number of fiscal shares), you’re eligible for an exemption.

2024 Income Limits (Metropolitan France):

Fiscal Shares Income Cap (€)
1 12,455
2 19,107
3 25,759
Each ½ share +3,326
Each ¼ share +1,663

Exemption rules apply as above, including extension and gradual phasing out.

Note:
These thresholds differ in overseas territories. Waste collection charges remain payable.

Residents in Nursing Homes or Care Facilities

If you move into a care facility and keep exclusive use of your former main home (not rented or lent), you can maintain your exemption from property tax France — provided you receive ASPA, ASI, or AAH. The same transitional rules apply.

Which Properties Are Subject to Property Tax France?

To be taxable, a property must:

  • Be permanently attached to the ground.

  • Be considered a true building or a structure integrated into one.

Commonly Taxed Properties Include:

  • Houses and apartments

  • Garages and parking areas

  • Outbuildings and land directly serving a building

  • Moored boats used as homes or businesses

  • Commercial, industrial, and professional buildings

  • Warehouses, workshops, tanks, etc.

  • Land used commercially, industrially, or for advertising under certain conditions

Exempt:
Mobile homes and caravans, unless fixed by masonry.

Which Properties Qualify for Full or Partial Tax Exemptions?

Newly Constructed or Extended Homes

New buildings, rebuilds, or major additions to residential buildings are exempt from TFPB for two years, starting January 1 following construction completion.

Important:
You must notify your local tax office within 90 days using the appropriate form for individual houses or apartments.

Note:
Local authorities may limit this exemption.

When and What Should Be Declared?

No declaration is needed unless changes were made to your property. If you’ve built or modified a structure, you must report it.

For New Individual Homes

Use Form H1 for single-family houses or standalone constructions.

Send the form to your local finance center within 90 days of project completion.

How Is Property Tax in France Calculated?

TFPB is calculated annually, based on the property’s status as of January 1.

Taxable Base

The taxable base is 50% of the cadastral rental value, which is updated yearly. Local councils vote on the applicable tax rates.

Final Calculation:

TFPB = Rental Value × Local Rate

Property Tax Cap for Low-Income Households

If you don’t qualify for a full exemption, you may still benefit from a cap on your property tax France liability.

How the Capping Works

Your tax bill for your primary residence cannot exceed 50% of your household’s income, provided:

  • You were not liable for the Real Estate Wealth Tax (IFI) the year before.

  • Your reference income is below the specified limits.

2024 Income Thresholds (Metropolitan France):

Fiscal Shares Income Cap (€)
1 29,288
2 41,518
3 52,292
½ share +5,387

How to Apply:

Use the designated form:
“Application for Property Tax Cap on Primary Residence Based on Income”
Submit it with supporting documents to your local public finance office.

Impôt France: Your Official Source for Tax Information Online

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If you’re looking for official information about taxes in France, there’s only one place to start: the French government’s tax website.

Whether you’re a resident, non-resident, property owner, or business professional, understanding how the French tax system works is essential—and now it’s easier than ever to access thanks to the official tax portal at impots.gouv.fr.

The Official French Tax Website: impots.gouv.fr

The impots.gouv.fr platform is the central digital hub for tax services in France, operated by the French Ministry of Finance. This government-run site is your go-to resource for anything related to impôt France—from income tax and property tax to VAT and corporate levies.

Available in both French and English, the website provides practical tools and official guides, making it easy to find reliable answers to your tax questions.

What You Can Do on impots.gouv.fr

Here’s what users—French citizens and foreign taxpayers alike—can access via the site:

  • File your income tax return online

  • Declare real estate or rental income

  • Pay property and local taxes

  • Check your tax account balance

  • Update your personal information

  • Download official tax forms

  • Contact your local tax office

For many services, you’ll need to log in using your personal tax number and password. But even without an account, the site offers valuable insights into how taxes are calculated in France and how to stay compliant.

English Language Support

If you’re not fluent in French, don’t worry—impots.gouv.fr has dedicated English-language resources for international users. You can access the English portal by selecting the “International” section or going directly to the English help pages.

This is particularly useful for:

  • Non-residents declaring income in France

  • Foreign property owners

  • International students or retirees living in France

  • Expats relocating to France

Why Use impots.gouv.fr?

Using the official tax site ensures that you’re getting:

  • Accurate and up-to-date tax information

  • Secure access to your tax documents

  • Direct communication with the French tax administration

  • Trusted forms and deadlines

No third-party interpretation, no misinformation—just everything you need to know about impôt France, straight from the source.

Final Tip: Bookmark the Site for 2025 Tax Updates

Each year, new updates and tax rules are published on impots.gouv.fr, including important changes to income tax brackets, deadlines, and property declarations. Bookmark the site now so you’re ready for 2025 and beyond.

✅ Want a more detailed breakdown of how French taxes work in 2025?
Check out this guide: Income Tax in France 2025: How It’s Calculated

Need Help Navigating the French Tax System?

Understanding and managing impôt France requirements as a foreigner or non-resident can be overwhelming. That’s where ESCEC International comes in.

Our team of tax experts can assist you with:

  • Filing your income tax return in France

  • Declaring property and rental income

  • Understanding your tax obligations as a non-resident

  • Setting up your personal tax account

Let us help you stay compliant and avoid costly mistakes.
👉 Contact ESCEC International today for personalized tax guidance tailored to your situation.

I Am a Non-Resident: How to Create Your Personal Tax Account in France

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Accessing Online Services Using Your Tax Number in France

To access French tax services online, you need your own personal account. This access is individual: each person in a tax household uses their tax number France to connect, manage their tax obligations, or check their status—regardless of the type of tax involved.

Setting Up Your Personal Account as a Non-Resident

If you reside outside France and do not yet have a personal tax account, you can create one depending on your current tax situation.

If You Have a Tax Number and Are Liable for Income Tax

As a non-resident with an existing tax number in France, you can create your personal account using three identifiers found on your tax documents:

  • Your tax number France: This 13-digit number appears at the top of your latest income tax return and on other tax notices (e.g. local taxes, income tax assessments).

  • Your online access number: Located on the first page of your latest income tax return. It is updated annually, so always use the number from your most recent return.

  • Your reference taxable income: Usually listed in the “Vos références” section on the first page of your most recent tax assessment. If not there, check the “Informations complémentaires” (Other Information) section—especially if you received tax relief.

If You Don’t Have These Details

Even without full tax documentation, you may still request an account if:

  • Your income is subject to withholding at source, or

  • You have a tax number France but are not subject to income tax (e.g. you pay only residence tax on a second home or property tax).

In these cases, complete the online form on the official French tax website.

You will need to submit:

  • Your marital status;

  • Your address abroad;

  • A copy of a valid ID.

Once your identity is verified, you’ll receive an email allowing you to create your personal space by entering your tax number and date of birth on the login page.

You’ll then be prompted to:

  • Enter your email address;

  • Choose a password.

You will receive a confirmation email containing an activation link—click it within eight hours to finalize account creation.

Special Case: Declaring Income in France for the First Time

Important: If you are declaring income or assets in France for the first time, you cannot create an account online. In this case, you must complete and send a paper tax return to your local tax office. The form can be downloaded from the impots.gouv.fr search engine.

Once your account is set up, your password will be used for all future logins.

Account Security and Recovery Options

If you ever forget your tax number France or password, you can retrieve them via SMS. To use this feature, you must validate or update your mobile phone number in your account settings.

✅ Want to learn more about filing your return as a non-resident? Read this guide:
Annual Income Tax Return in France: What You Need to Know for 2025

Income Tax France: Understanding How It Works

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In France, income tax is calculated based on a progressive tax scale, meaning the rate increases in line with your income. The system is organized into several income brackets, each subject to a specific tax rate ranging from 0% to 45%.

How the Income Tax Scale Works in France

To calculate your income tax in France, the French tax authority applies your taxable income to a progressive scale, adjusting it through the family quotient system. This method considers your marital status, number of dependents, and overall household structure to determine your number of shares (or parts).

Important:
The French income tax brackets are revised annually. The 2025 income tax scale—applicable to income earned in 2024—was established in the 2025 Finance Act.

For more information, consult the official government resource on how income tax is calculated in France (Service-Public.fr).

2024 Income Tax Brackets in France (Applicable in 2025)

Taxable Income Range Tax Rate
Up to €11,497 0%
€11,498 to €29,315 11%
€29,316 to €83,823 30%
€83,824 to €180,294 41%
Over €180,294 45%

Key Tax Terms Explained

  • Marginal Tax Rate (TMI): This is the highest tax rate applicable to the top portion of your income. Only the income within that bracket is taxed at this rate—not your total income.

  • Average Tax Rate: This reflects the effective tax burden as a percentage of your total income.

Note:
The tax advantage from having children is limited by a family quotient ceiling, which caps the maximum benefit allowed.

Learn more about how income tax in France is calculated with examples by visiting this in-depth guide from ESCEC International.

Examples of Income Tax Calculations in France

The following scenarios illustrate how income tax is calculated using the French family quotient system.

Married Couple or Former Partners Without Children

Scenario:
A married or PACSed couple with no children earning a net taxable income of €90,000.

  • Household shares: 2

  • Family quotient: €90,000 ÷ 2 = €45,000

Tax Breakdown (per share):

  • 0% on €11,497 → €0

  • 11% on €17,818 (€29,315 – €11,497) → €1,959.98

  • 30% on €15,685 (€45,000 – €29,315) → €4,705.50

Total per share: €6,665.48
Total for household: €6,665.48 × 2 = €13,330.96

  • Marginal Tax Rate: 30%
    Only the portion of income exceeding €29,315 is taxed at this rate.

Single Individual

Scenario:
An unmarried person with no dependents and taxable net income of €30,000.

  • Household shares: 1

  • Family quotient: €30,000 ÷ 1 = €30,000

Tax Breakdown:

  • 0% on €11,497 → €0

  • 11% on €17,818 (€29,315 – €11,497) → €1,959.98

  • 30% on €685 (€30,000 – €29,315) → €205.50

Total Tax: €2,165.48

  • Marginal Tax Rate: 30%
    Only the final €685 is taxed at 30%.

Married Couple or Former Partners With One Child

Scenario:
A married couple or PACSed partners with 1 child, earning €60,000 in taxable income.

  • Household shares: 2.5 (1 per parent + 0.5 for the child)

  • Family quotient: €60,000 ÷ 2.5 = €24,000

Tax Breakdown (per share):

  • 0% on €11,497 → €0

  • 11% on €12,503 (€24,000 – €11,497) → €1,375.33

Tax per share: €1,375.33
Total for household: €1,375.33 × 2.5 = €3,438.33

Child Tax Advantage:

  • Without a child, the same couple would pay €4,330.96

  • With one child: €3,438.33

  • Savings: €892.63

This benefit remains below the ceiling for child-related tax advantages, which is €1,791.

  • Marginal Tax Rate: 11%
    Only income in the second bracket is taxed at this rate.

Summary: Income Tax France in Practice

The French tax system is designed to be equitable by adjusting taxable income according to your family structure via the family quotient method. Taxpayers are taxed progressively, and although the marginal tax rate may appear high, only a portion of income is taxed at that rate.

To explore further details or simulate your own tax, consult the French government’s official portal:
👉 Service-Public.fr – Income Tax in France

Income Tax in France 2025: How It Is Calculated

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Understanding how your income tax france is calculated in France is essential for managing your finances and complying with tax obligations. The French personal income tax is based on a progressive rate system. The calculation begins with a gross amount and is then adjusted to determine the net tax payable.

You can calculate your income tax using the official online tax simulator for 2025 (2024 income). Alternatively, if you prefer a manual approach, here is a step-by-step breakdown of the process.

To learn more about how salary tax works in France, you may also want to read this complete guide on individual taxation in France.

Step 1: Identify Your Total Gross Income

Start by listing all sources of income according to their categories, including:

  • Taxable net salary

  • Pensions and retirement benefits

  • Business or self-employment income: BIC (industrial/commercial), BNC (non-commercial), or BA (agricultural)

  • Rental income

  • Investment income and capital gains on financial assets

  • Real estate capital gains

Make sure to apply the appropriate deductions, such as the standard deduction for professional expenses (typically 10%).

Example:
If a single taxpayer declares €30,000 in net taxable salary and opts for the 10% flat deduction for professional costs:
€30,000 – (€30,000 × 10%) = €27,000
This figure represents the total gross income.

Step 2: Calculate Your Net Total Income

Net total income = Gross income – Deductible expenses

The main deductible expenses may include:

  • Alimony paid to children (minor or adult)

  • Alimony paid to a parent

  • Alimony paid to a former spouse

  • Housing costs for an elderly person

  • Retirement savings contributions

Step 3: Determine Your Taxable Net Income

Taxable net income = Net total income – Special allowances

Certain taxpayers may qualify for additional deductions, such as:

  • Individuals aged 65 or older

  • Persons with disabilities

  • Households that declare a married, PACSed, or dependent child

Step 4: Calculate the Gross Tax Amount

This part of the calculation involves several stages:

Step 4.1: Determine the Number of Tax Shares (Quotient Familial)

Your tax shares depend on your household structure:

  • Single individual

  • Unmarried couple

  • Married or PACSed couple

Additional shares are granted for dependents such as:

  • Minor children

  • Adult children

  • Disabled dependents

  • Invalids

Step 4.2: Compute the Family Quotient

Family quotient = Taxable net income / Number of tax shares

Example:
A couple with a taxable income of €30,000 and 2 tax shares has a quotient familial of:
€30,000 / 2 = €15,000

Step 4.3: Apply the Progressive Tax Brackets

Once the family quotient is calculated, it is taxed according to the progressive income tax scale applicable to 2024 income:

Income Bracket (2024) Applicable Rate
Up to €11,497 0%
€11,498 to €29,315 11%
€29,316 to €83,823 30%
€83,824 to €180,294 41%
Over €180,294 45%

There are two important tax rates to understand:

  • Marginal Tax Rate (TMI): The rate that applies to the last euro you earn.

  • Average Tax Rate: Your overall tax as a percentage of your taxable income.

Note:
The tax benefit associated with dependents is capped, which limits the advantages of the family quotient mechanism.

Example: Tax Calculation for a Single Taxpayer

A single person (one tax share) with a taxable net income of €30,000 and no deductions or credits will be taxed as follows:

  • First €11,497 → 0% tax = €0

  • Next €17,818 (€29,315 – €11,497) → 11% = €1,959.98

  • Final €685 (€30,000 – €29,315) → 30% = €205.50

Total Gross Tax = €0 + €1,959.98 + €205.50 = €2,165.48

This taxpayer falls into the 30% marginal tax bracket, but their entire income is not taxed at this rate—only the top portion is.

Income Tax – First-Time Income Declaration in France

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If you are 18 years old and no longer attached to your parents’ tax household, you may be required to file your own income tax return under certain conditions. Here’s what you need to know.

Learn more in our full guide: Annual Income Tax Return in France – 2025
Official instructions: First-Time Income Declaration – Service-Public.fr

Who Needs to File a First Income Tax Return?

Your obligation to file a tax return depends on your age as of January 1, 2024.

Born in 1998 or Earlier

Starting at age 25, you are required to file your own tax return independently.

Even if you are not taxable, you should still file a return. Doing so allows you to obtain a non-taxation certificate, which is essential for various administrative procedures and can help you qualify for certain benefits (e.g., student grants based on social criteria).

How to File Your First Tax Return

If you meet the criteria, you will receive a letter from the tax office in April.

This applies if:

  • You are 20 years old or older

  • You were previously attached to your parents’ tax household

You will need to create your Personal Tax Account (espace particulier) online using the tax ID number and access code provided in the letter.

➡️ Access your personal space

Steps:

  • Choose a secure password

  • Enter a taxable income reference of €0, if applicable

When Should You File the Tax Return?

The online filing period for 2024 income opens on April 10, 2025.

The deadline depends on whether you file online or by paper form.

You can check the applicable date using the online deadline simulator on the government’s site.

Note: Online filing is mandatory if your main residence has internet access and you are able to declare online.

Online Filing Deadlines by Department

Department Deadline
Departments 01 to 19 Thursday, May 22, 2025 at 23:59
Departments 20 to 54 (incl. 2A, 2B) Wednesday, May 28, 2025 at 23:59
Departments 55 to 974/976 Thursday, June 5, 2025 at 23:59
Non-residents Thursday, May 22, 2025 at 23:59

📍 Declare 2024 income online in 2025

If You Must Submit a Paper Tax Return

If you’re required to file a paper return, it must be submitted no later than Tuesday, May 20, 2025, at 23:59, including for French residents living abroad.

Annual Income Tax Return in France: What You Need to Know for 2025

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Who Needs to File a Tax Return in France?

You are required to file an income tax return with the French tax authorities if:

  • You reside in France, or

  • Your tax residence is located in France.

🔔 Important:
Even if you live abroad, you must still report your income in France if it originates from French sources.

You are obligated to declare your income even if you had very low or no income at all. This can be beneficial, as it may allow you to:

  • Obtain a non-taxation certificate, which is often required to access social benefits (e.g., housing assistance).

  • Claim tax credits to which you are entitled (e.g., childcare expenses, either at home or in a daycare).

Only one tax return should be filed per household, and it must include the income and deductions for all members of the tax household.

For more detailed information, visit the official Service-Public.fr portal.

How to File Your Income Tax Return in 2025: Annual income tax

If your primary residence is connected to the internet and you are able to file online, you must submit your return electronically.

Failure to file online when required can result in a 0.2% penalty on your tax due, with a minimum fine of €60.

You can declare your 2024 income via your personal space on the official tax website:

🔗 Access your personal tax space here

Before validating your pre-filled return, you must carefully review the data provided and make any necessary corrections or additions.

Keep all supporting documents for three years, in case the tax administration requests them.

Paper filing is allowed only if you live in an area with no mobile or internet access.

Key Deadlines for Filing in 2025

The online income declaration for 2024 opens on April 10, 2025.

🗓️ The deadline to file depends on your place of residence and the method of filing (paper or online).

You can use the official simulator to check your exact deadline.

Online Filing Deadlines by Department

Department Number Filing Deadline
01 to 19 Thursday, May 22, 2025 at 11:59 PM
20 to 54 (incl. 2A and 2B) Wednesday, May 28, 2025 at 11:59 PM
55 to 974/976 Thursday, June 5, 2025 at 11:59 PM
Non-residents Thursday, May 22, 2025 at 11:59 PM

🔄 Need to make corrections after filing?
You can still amend certain details on your return even after it has been submitted.

Related Topic: Salary Tax in France – Taxation of Individuals

If you’re also earning salary income in France, check out our comprehensive guide to understand how employment income is taxed, and how it interacts with capital income and other tax obligations.