France Tax Rates
France operates a progressive income tax system with rates ranging from 0% to 45%, administered by the Direction Générale des Finances Publiques (DGFiP). The French tax system is characterized by household-based taxation using the quotient familial system, high social security contributions, and a broad VAT. France is one of the few European countries that levies a wealth tax on real estate assets (IFI).
Top Income Tax Rate
45%
Corporate Tax Rate
25%
VAT / Sales Tax
20%
Capital Gains Tax
30%
Detailed Tax Information
Income Tax Brackets
France applies a progressive income tax (impôt sur le revenu) with five brackets ranging from 0% to 45%. Uniquely, France uses a household-based system called the quotient familial, where taxable income is divided by the number of household 'parts' (shares) based on family composition. A single person counts as 1 part, a married couple as 2, and each child adds 0.5 parts (1 part for the third child onwards). This effectively lowers the marginal rate for families with children. An exceptional contribution on high incomes (CEHR) of 3% applies to income between €250,000 and €500,000, and 4% above €500,000 for single filers.
| Income Range | Tax Rate |
|---|---|
| €0 – €11K | 0% |
| €11K – €29K | 11% |
| €29K – €82K | 30% |
| €82K – €177K | 41% |
| €177K+ | 45% |
Corporate Tax
France applies a standard corporate income tax (impôt sur les sociétés) rate of 25% for all companies. Small and medium-sized enterprises (SMEs) with turnover below €10 million benefit from a reduced rate of 15% on the first €42,500 of taxable profit. The standard rate applies to all profits above that threshold.
Standard Rate
25%
Small Business Rate
15%
Capital Gains Tax
Capital gains are subject to the flat tax (prélèvement forfaitaire unique or PFU) of 30%, comprising 12.8% income tax and 17.2% social levies (CSG/CRDS). Taxpayers may opt for progressive taxation instead if more favorable, in which case the income tax portion is taxed at their marginal rate. Real estate capital gains (excluding principal residence) are subject to 19% income tax plus 17.2% social levies, with tapering relief after 6 years of ownership leading to full exemption after 22 years (income tax) or 30 years (social levies).
Rate
30%
VAT / Sales Tax
France applies a standard VAT (Taxe sur la Valeur Ajoutée, TVA) rate of 20%, with three reduced rates: 10%, 5.5%, and a super-reduced rate of 2.1%. The French VAT system follows EU VAT directives. Corsica benefits from special reduced rates on certain goods and services. The overseas departments (DOM) also have specific VAT arrangements.
Standard Rate
20%
Cryptocurrency Tax
Cryptocurrency gains realized by individuals are subject to the flat tax (PFU) of 30% (12.8% income tax + 17.2% social levies) for occasional traders. Taxpayers may alternatively opt for the progressive income tax scale if more favorable. Professional crypto traders are subject to BIC (Bénéfices Industriels et Commerciaux) taxation at their marginal income tax rate plus social charges.
Tax Treaties
France has one of the world's most extensive networks of double taxation treaties, with approximately 125 agreements in force. These treaties generally follow the OECD Model Tax Convention and typically reduce withholding taxes on dividends, interest, and royalties. France actively participates in OECD BEPS initiatives and was among the first signatories of the Multilateral Instrument (MLI). France also exchanges tax information under the Common Reporting Standard (CRS).
Treaty Network
125
Double taxation agreements
Major treaty partners:
Key Details
Relocate to France
See how much you could save by moving here from your current country.
$-22,866
Tax in United States
$24K
24.4% effective
Tax in France
$47K
47.2% effective
Additional Cost
93.9%
more tax annually
US Citizens: Important Note
US citizens are taxed on worldwide income regardless of residence. You'll still need to file US taxes, though the Foreign Earned Income Exclusion and Foreign Tax Credit may reduce your liability.
