Tax 2026 France: Key Changes for Individuals

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The Finance Law for 2026, enacted on February 19, 2026, introduces several updates affecting households. These include adjustments to income tax brackets, new taxes, housing incentives, and expanded social support measures. Below is a complete overview of the main changes.

Income Tax Updates

Revaluation of Income Tax Brackets

To offset inflation (+0.9%), the income tax scale has been adjusted. This prevents households from being pushed into higher tax brackets without a real increase in purchasing power.

Income Tax Scale (per share):

  • Up to €11,600 → 0%
  • From €11,601 to €29,579 → 11%
  • From €29,580 to €84,577 → 30%
  • From €84,578 to €181,917 → 41%
  • Above €181,917 → 45%

10% Allowance on Pensions Maintained

The initial proposal aimed to replace the 10% deduction on pension income with a flat €2,000 allowance. This measure has been dropped. The existing 10% deduction remains in place.

Extension of the Differential Contribution on High Incomes (CDHR)

First introduced in 2025, this contribution is extended. It ensures a minimum taxation rate of 20% for high-income households until the public deficit drops below 3% of GDP.

It applies to households with a reference tax income exceeding:

  • €250,000 for a single person
  • €500,000 for a couple

New Tax on Family Holdings

A new tax targets certain assets held through family holding companies. The scope has been narrowed compared to the initial proposal.

It applies only to non-business “luxury” assets such as:

  • Yachts
  • Classic vehicles
  • Racehorses
  • Jewelry

Excluded from taxation:

  • Cash holdings
  • Financial securities
  • Active shareholdings
  • Artworks

Key details:

  • Tax rate: 20%
  • Applies to financial years ending from December 31, 2026
  • Only concerns holdings controlled by individuals with assets of at least €5 million

Increase in the “Coluche” Tax Reduction Cap

To encourage charitable giving:

  • Donations to organizations supporting vulnerable individuals or victims of violence benefit from a 75% tax reduction, up to €2,000 per year (previously €1,000), for donations made from October 14, 2025
  • Donations made between January 1 and December 31, 2026, for the restoration of Château de Chambord also qualify for a 75% reduction, capped at €1,000 per year

Consumption

Introduction of a Tax on Small Parcels

A new €2 tax per item has been introduced to address competition from international e-commerce platforms.

It applies from March 1, 2026, to parcels:

  • Valued under €150
  • Imported from countries outside the European Union

Housing Measures

Launch of the “Relance Logement” Scheme

A new tax incentive aims to boost the rental housing market. This program will run for three years and applies nationwide to:

  • New properties
  • Older properties, provided renovation work represents at least 30% of the property’s value

Conditions:

  • Property must be rented as a primary residence (excluding close family members)
  • Minimum rental commitment: 9 years
  • Rent ceilings must be respected

Tax benefits:

  • Deduction of part of the purchase price (up to €12,000 per year)
  • Deduction of rental-related expenses (renovation, loan interest, property tax) up to €10,700

Social Benefits and Financial Support

Increase in the Activity Bonus

The activity bonus is increased by an average of €50 per month per beneficiary. This support helps low-income workers and encourages employment.

Expansion of the €1 Student Meal

To tackle student poverty, all students will now have access to a full meal (starter, main, dessert) for €1 in university restaurants (CROUS), starting May 1, 2026.

Students must:

  • Be enrolled in higher education
  • Present a valid student card

Reopening of MaPrimeRénov’

After being suspended due to the absence of a voted budget at the end of 2025, MaPrimeRénov’ is fully reinstated under the same conditions as in 2025.

A mandatory consultation with a France Rénov’ advisor is now required before submitting an application.

Reopening of Other Suspended Aid Programs

The 2026 Finance Law also allows the gradual reopening of several programs that were paused:

  • Ma Prime Logement Décent (for substandard housing renovation)
  • Ma Prime Adapt’ (for home adaptation works)
  • Loc’Avantages (tax reduction for affordable rental housing)

Revaluation of Social Benefits

Social benefits are increased in line with inflation (+0.8%) as of April 1, 2026:

  • RSA: €651.69 per month
  • AAH: €1,041.59 per month
  • APL: amount varies depending on household situation
  • Family allowances: adjusted based on household composition

Driving License Financing Changes

Funding for driving license preparation (A1, A2, B1, B) through the CPF is now restricted to:

  • Job seekers
  • Employees receiving third-party financial support

Additionally, financial aid for apprentices to obtain a driving license has been removed.