French Income Tax
Once a resident in France, you are liable to pay French taxes on your income world-wide and will need to file your French tax return as an expat and if you’re living long-term in France, you will likely need to file a French tax return. France has one of the most generous social security systems in the world but it’s paid for high social charges as well as by income tax. There are three main types of personal taxation in France: income tax (impôt sur le revenu); social security contributions (charges sociales/cotisations sociales); and tax on goods and services (taxe sur la valeur ajoutée TVA).
Who has to pay French taxes?
There are several conditions for those who are liable to pay tax in France such as:
- France is main place of residence or home (if a spouse and children live in France and you work abroad – still be considered a French tax resident)
- Being are resident in France for more than 183 days in a calendar year (not necessarily consecutively)
- Main occupation is in France.
- Most substantial assets are in France.
The amount of tax you pay is not based on your earnings as an individual, but on your earnings as a household, couples who are married or in a civil partnership (PACS), and families with children usually pay less income tax than individuals.
Income tax is calculated according to the total income of the household, which is deemed as being equally distributed between each member of the household (called a part). The total income is divided by the number of parts applying the below rates. The resulting figure is then multiplied by the number of parts to give the total tax due. Furthermore, each child counts as half a part and the tax advantage obtained for each child is limited to 1.510 Euro (known as plafonnement) or 3.562 Euro for one-parent families.
Please note that income tax is not deducted at source from an employee’s wage (although social security contributions are). Everyone (unless they are not resident) has to complete an annual tax return and have the money available to pay their tax bill. Expats – French sourced income at a minimum of 20 percent.
|0 – €9,690||0%|
|€9,700 – €26,791||14%|
|€26,791 – €71,826||30%|
|€71,826 – €152,108||41%|
Changes in 2017
Please see following changes in Taxable Income brackets.
|0 – 9,710€||0%|
|9,710€ – 26,818€||14%|
|26,818€ – 71,898€||30%|
|71,898€ – 152,260€||41%|
Calculate your net income:
Please note, that this calculation took into a consideration just a very basic pieces of information of yours and the result might vary significantly. Contact us for detailed and precise calculation or let us know by filling a form and will call you back. Contact us for an exact calculation.