Income Tax on Savings and Investment Income in France (2026 Income)

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Service Public / Directorate for Legal and Administrative Information (Prime Minister)

2027 Tax Return for 2026 Financial Income

Dividends and Income from Shares or Company Interests

These types of income do not need to be reported in your 2026 tax return relating to your 2025 income.

They must instead be declared in your 2027 tax return for income received in 2026.

Important Update

The rate of social contributions on investment income increases to 18.6% from January 1, 2026.

However, specific rules may still apply to certain investments, particularly where gains or contributions relate to periods before 2018. You should check with your financial institution for details relevant to your situation.

Income from Shares or Company Interests

Taxable Income

Income received from shares and equity interests in companies subject to corporate income tax is taxable.

Depending on the nature of the payment, this income may be classified as:

  • Dividends
  • Distributed income

Taxation Options

You may choose between two tax regimes for this type of income:

  • Flat Tax (Prélèvement Forfaitaire Unique – PFU)
  • Progressive Income Tax Scale (barème progressif de l’impôt sur le revenu)

If you do not make a specific election, your income will automatically be taxed under the PFU.

Flat Tax (PFU)

The PFU is made up of:

  • 12.8% income tax
  • Social contributions

If you choose the PFU, you cannot benefit from the following tax advantages:

  • 40% allowance on dividends
  • Deduction of part of the CSG
  • Deduction of expenses and charges

Progressive Income Tax Scale

If you opt for the progressive income tax scale, your investment income will be taxed according to your marginal income tax bracket.

You will also remain liable for social contributions.

Choosing the progressive scale allows access to the following benefits:

  • 40% allowance on dividends
  • Deduction of part of the CSG
  • Deduction of expenses and charges

This option applies to all of your investment income and capital gains from the sale of securities.

Which Option Is More Advantageous?

The most beneficial regime generally depends on your income tax bracket:

  • If you are not taxable or taxed at 11%, the progressive scale is usually more favorable than the PFU at 12.8%
  • If you are taxed at 30% or more, the PFU at 12.8% is generally more advantageous

Note

For income received in 2026 (declared in 2027) and for subsequent years, you may withdraw your choice of the progressive tax scale if it later proves unfavorable.

This reversal may be made within the tax claim deadline or during a tax audit.

Exemption from the Non-Final Flat Tax Withholding

You may request an exemption from the non-final flat tax withholding if your reference tax income (revenu fiscal de référence) from the second preceding year is below the following thresholds:

  • €50,000 if you are single
  • €75,000 for a married or civil union couple filing jointly

For income received in 2026, the relevant reference tax income is that of 2024.

The request must be sent to the financial institution paying the income no later than November 30 of the year preceding payment.

For example, the deadline is November 30, 2026 to obtain an exemption for income paid in 2027.

In most cases, the financial institution will send you a sworn statement form to complete and return if you meet the required conditions.

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