Taxes in France in 2026: What You Need to Know

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France is known for a complex tax system with high levels of public revenue relative to its economy. For 2026, French fiscal policy focuses on balancing the state budget, supporting social programs, and redistributing income more progressively — especially following political debates and negotiations in 2025.

Key Tax Categories in France

1. Income Tax (Impôt sur le Revenu)

The income tax in France is progressive, meaning higher earners pay a larger percentage of their income.

📌 For tax year 2026 (on 2025 income), the provisional French income tax brackets are approximately:

  • 0% — up to ~€11,600

  • 11% — €11,600–€29,600

  • 30% — €29,600–€84,600

  • 41% — €84,600–€182,000

  • 45% — above ~€182,000

The government has considered modest indexation to inflation to prevent bracket creep but the exact figures depend on final parliamentary approval.

2. Wealth and High-Income Taxes

Tax changes in 2026 particularly impact wealthier individuals and households.

a. Extended Minimum Tax for High Earners

A tax measure called the Contribution Différentielle sur les Hauts Revenus (CDHR) will continue. It ensures that individuals earning over €250,000 (or couples over €500,000) pay at least 20% in tax on their income if exemptions and credits would otherwise reduce it below that level.

b. New “Wealth Tax on Unproductive Assets”

Beyond the existing Impôt sur la Fortune Immobilière (IFI) — which mainly taxes real estate — France is expanding its base to include luxury goods and other assets that do not generate income (e.g., valuable art, yachts, certain financial assets and cryptocurrencies).

• The expanded IFI now applies a flat 1% rate on net wealth above €1.3 million.

These reforms aim to discourage the hoarding of wealth that isn’t invested in productive economic activity.

3. Corporate Taxes (Impôt sur les Sociétés)

Corporate taxation in France remains a major focus of reform in 2026:

a. Temporary Surcharge for Large Corporations

A special corporate tax surcharge on major firms — particularly those with revenues over €1 billion — is being extended into 2026. Rates differ by company size but can be significant.

This extension is controversial, with business leaders warning it may hurt investment and competitiveness.

b. New Taxes on Holding Companies

The draft Finance Bill introduces a 2% tax on the non-professional assets of holding companies under certain conditions.

c. Planned Phasing Out of Some Business Levies

The Business Contribution on Added Value (BCAV) — a local tax — is scheduled for gradual abolition by 2028, with reduced rates starting in 2026.

4. Value-Added Tax (VAT) and Other Indirect Taxes

France’s VAT system remains broadly stable, though the 2026 Finance Bill proposes:

  • Preservation of 2025 VAT thresholds for small businesses.

  • New thresholds in construction.

  • A possible new temporary tax on certain small shipment customs declarations.

Indirect taxes like VAT continue to be a major revenue source for the state.

5. Social Contributions and Healthcare Levies

Social insurance and health contributions fund public services like healthcare, unemployment and pensions. For 2026:

  • New contributions — especially on health insurance premiums — may be introduced, increasing the overall tax on insurance products.

Because France’s social system is largely funded through payroll and social levies, these changes can affect households and employers alike.

6. Environmental and “Solidarity” Taxes

While not strictly part of the main tax base, some notable indirect taxes continue to evolve:

  • Airline ticket solidarity tax increases introduced earlier remain in effect (raising costs on many flights to fund development programs).

Environmental levies on plastic packaging and waste management are also being phased in.

Political and Economic Context

France’s tax policy in 2026 is shaped by ongoing debates about public spending, deficit reduction and equity. Lawmakers are negotiating a budget in a politically fragmented parliament, and some proposed wealth taxes — especially on ultra-high fortunes — have been contentious.

The overall trend is toward higher revenues, with new taxes and extended levies aimed at wealthier households and large corporations as part of a broader effort to balance the budget.

What This Means for Taxpayers

✔ Middle-income earners should monitor possible inflation indexing in income tax brackets — as it affects how much tax they pay.
✔ High earners and asset owners will face more taxation on wealth and income.
✔ Large businesses could pay more through surcharges and new corporate levies.
✔ Indirect taxes and contributions supporting social programs are expanding in some areas.

Summary: France’s tax landscape in 2026 reflects efforts to preserve social services, adjust tax burdens more equitably and address budgetary pressures. While many changes are technical and targeted, some broader reforms could affect taxpayers at various income levels.

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