French Taxes for U.S. Expats – A Guide (2025 Edition)

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Living in France offers many rewards—from culture and cuisine to lifestyle improvements—but navigating its tax system can feel daunting for U.S. citizens. This guide helps simplify how French and U.S. tax rules apply to Americans residing in France.

Dual Tax Residency: What You Need to Know

French Tax Residency Criteria

You’re considered a French tax resident if:

  • Your primary home or family resides in France,

  • Your main professional activity or economic interests are based in France,

  • You spend the majority of your year living in France.

French residents are taxed on their worldwide income, so U.S. earnings and French income alike must be declared.

Current Tax Structures: What’s Changed in 2025

France recently introduced measures that affect high earners, including:

  • A temporary 20% minimum tax on high income (2024–2026),

  • An additional surtax for individuals earning over €250,000 yearly.

These reforms aim to reinforce fiscal equity and reduce public deficits.

Filing Taxes: French and U.S. Obligations

In France

  • Use Form 2042 for personal income reporting.

  • Standard online due dates:

    • May 22: départements 1–19

    • May 29: départements 20–54

    • June 5: départements 55–101 and overseas territories

In the U.S.

  • American citizens and green card holders must file U.S. tax returns each year, regardless of residence.

  • Exemptions include foreign income exclusions and tax credits to avoid double taxation.

French Tax Rates for Individuals (2024 Tax Year)

  • Up to €11,294: 0%

  • €11,295–€28,797: 11%

  • €28,798–€82,341: 30%

  • €82,342–€177,106: 41%

  • Above €177,106: 45%

Key French Tax Categories

Property Taxes

  • Taxe foncière: paid by property owners; rates vary by region

  • Taxe d’habitation: abolished in 2023 for primary residences

Wealth Tax (IFI)

  • Applies to property over €1.3M at rates ranging from 0.5% to 1.5%

Capital Gains Tax

  • Standard rate: 36.2%

  • Rate for non-residents not affiliated with French social security: 26.5%

VAT (TVA)

  • Standard rate: 20%

  • Reduced rates exist (e.g. 10%, 5.5%, 2.1% depending on goods/services)

U.S.–French Tax Interaction: Credits and Exemptions

Foreign Tax Credit (FTC)

  • Allows U.S. taxpayers to credit French taxes paid against U.S. tax obligations (including social taxes now treated as income taxes by the IRS), even retroactively to 2009.

Foreign Earned Income Exclusion (FEIE)

  • Allows exclusion of up to ~$126,500–130,000 of earned income (2025 threshold), plus housing benefits.

Child Tax Credit

  • U.S. parents abroad may still claim up to $2,000 per child, with partial refunds possible in many cases.

Social Security Coordination

The U.S.–France Totalization Agreement helps avoid paying into both systems:

  • Employees in France: social contributions (20–23%) withheld by their employer.

  • Self-employed individuals: contribute between 6%–42%, depending on status (e.g. micro-entrepreneur vs. other schemes).

Reporting by Foreign Residents

Rental Income

Real estate profits abroad (e.g. U.S. properties) must be reported to both French and U.S. authorities, though double taxation treaties and credits can reduce liabilities.

Foreign Bank Accounts

  • FBAR (FinCEN 114): required if total foreign accounts exceed $10,000

  • Form 8938: needed if foreign assets exceed $200,000 as of year-end (or $300,000 at any point)

Catching Up: U.S. Tax Amnesty for Non-filers

Expats who have not filed U.S. returns may qualify for the Streamlined Filing Compliance Procedure. This IRS program allows for retroactive filing (past three tax years and six FBARs) without penalties, provided the failure to file was not willful.

Final Thoughts

While relocating to France enhances life in many ways, it also adds complexity to your tax responsibilities. Balancing both French and U.S. tax obligations can be managed more easily with planning and awareness of tax treaties, credits, and filing deadlines.