France income tax: rate and brackets for foreigners in 2024
France is the country where the level of social well-being is based on an extensive and multi-stage taxation system. Taxes account for up to 90% of the country’s budget revenues. They are a redistributive measure that guarantees a high level stability of the society.
Personal income tax brackets in France
Income tax in France has a social nature. It is calculated on a progressive scale and supports low-income part of society: students, young professionals and people without income.
The progressive scale includes 5 income groups that are directly related to the minimum wage SMIC (1766.92 euros per month in 2024, before taxes). If your annual income is below the established minimum threshold, there is no need to pay tax, although a zero tax return must still be filed.
Taxable income, € | Tax rate, % |
under 11,294 € | 0% |
from 11,295 to 28,797 € | 11% |
from 28,798 to 82,341 € | 30% |
from 82,342 to 177,106 € | 41% |
over 177,106 € | 45% |
Source: economie.gouv.fr
When calculating the amount of tax, it is necessary to take into account all income received in France and abroad in case of residence, as well as the official composition of your family.
If you are not a resident of France, any income in France is taxed from 20 to 30%.
Tax household in France
One of the most important differences of French taxation is that taxes are calculated not from an individual, but from a household (foyer fiscal).
A household is a group of people (family) united by cohabitation and family ties. The principle of household taxation is that each taxpayer is taxed on all profits of his family: for all incomes of the same household, one declaration must be submitted. Unlike in many countries, family members cannot choose to file separate income declarations.
Such a system, except for France, exists only on the territory of Belgium and Switzerland bordering France.
Members in the household | Coefficients |
1 person | 1 |
Couple (marriage / PACS) | 2 |
Married couple + 1 child | 2,5 |
Married couple + 2 children | 3 |
Married couple + 3 children | 3,5 |
Source: economie.gouv.fr
Calculation of income tax in France
The calculation of household:
- The total income of all family members is summed up.
- The amount is divided by the number of household members.
- From the resulting equal shares, the percentage of each is calculated at a progressive rate.
- The totals are summarised to obtain a tax number.
Example I
We will calculate the income tax required for a person living in France independently with a net income of 32,000 euros per year.
This person has a coefficient of 1, since he lives independently of other persons, respectively 32,000 / 1 = 32,000 euros — the amount that is the tax base.
- income up to 11,294 euros is taxed at a rate of 0% = 0 euros;
- income ranging from 11,295 euros to 28,797 euros is taxed at a rate of 11%: that is (28,797 — 11,294) x 11% = 1,925.33 euros;
- income from 28,798 euros to 32,000 euros is taxed at a rate of 30%: that is (32,000 — 28,797) x 30% = 960.9 euros.
Then it is necessary to summarise the overall result: 0 + 1,925.33 + 960,9 = 2,886.23 euros. The final amount must be multiplied by the number of people in the household (in this case by 1): 2,886.23 euros x 1 = 2,886.23 euros is the amount of income tax required to be paid by this person for 1 year.
Example II
Let’s calculate the income tax required to be paid to a married couple or a couple who have concluded PACS with two minor children with a net income of 55,950 euros for the whole family.
This household consists of two parents and two children. The total family coefficient is 3. The entire net income of the family is divided by 3: 55,950 / 3 = 18,650 euros — the tax base.
- income up to 11,294 euros is taxed at a rate of 0% = 0 euros;
- income ranging from 11,295 to 18,650 euros is taxed at a rate of 11%: that is (18,650 — 11,294) x 11% = 809.16 euros.
Next, the final amount must be multiplied by the family coefficient: 809.16 euros x 3 = 2,427.48 euros.
In addition, in the French tax system there is a tax benefit for small incomes (if the amount paid per year does not exceed 3,191 euros for a married couple subject to general tax, and 1,929 euros for single, divorced, widowers). To find out the amount, you must deduct from the lump sum (873 euros for one person or 1,444 euros for a couple) your tax, to which the rate of 45.25% applies.
In our second example, the amount of income tax is below the threshold of 3,191 euros, the family benefits from the benefit, the amount of which is obtained by the following calculation: 1,444 — (2,427.48 × 45,25%) = 1,444 — 1,098 = 346 euros.
Thus, the amount of income tax after applying the discount is: 2,427.48 — 346 = 2,081.48 euros.
Non-taxable expenses
- the costs of marriage or divorce proceedings;
- child support;
- maintenance of parents (including in a nursing home);
- tuition fees for children at school;
- employment of a nanny for child care;
- donations to political organisations;
- donations to other organisations;
- contributions to the union;
- retirement savings;
- expenses for housing equipment for people with disabilities;
- the cost of installing electric vehicle charging systems;
- real estate investments under Pinel’s law;
- the costs of renting housing in certain municipalities of France.
In all of the above cases, the amount of the benefit is calculated according to an individual formula.
Income tax in France for foreigners
A person becomes a resident if he stays in France for more than 183 days a year. For the French Tax service, obtaining residency means that the centre of an individual’s economic interests is France. However, if the person is not an expat and does not live in France, in some cases it is still necessary to pay taxes.
If you are a non-resident and own property in France, you will have to pay taxes related to real estate, as well as income tax on profits earned in France.
If you are a non-resident and do not own property in France, you need to pay tax only if you have received income in France.
As a non-tax resident of France, you are taxed on a progressive tax scale with the following minimum tax rate:
- 20% on your income, which is less than or equal to 28,797 euros;
- 30% on your income over 28,797 euros.
The taxable basis for calculating income tax for non-residents may be: income from business, pensions or other social benefits, dividends.
Penalties for non-payment of income tax
Late filing of a declaration and non-payment of taxes on all existing sources of income in France is fraught with a system of fines and penalties. The delay in filing the declaration is equal to an increase of 0.75% to the amount of the principal payment every month, this amount increases to 9% per year, and if intentional concealment of part of the income is detected, the fine will reach 40–80% of the increase in the principal amount.
Particularly large violations are fraught with the seizure of property, a fine of up to 250,000 euros and imprisonment for up to 5 years. To optimise payments and control delays, many banks directly debit the required amount from your bank account at the time of payment.
Tranio’s legal team is ready to analyse your case and find the best solution for a non-standard situation.
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