What's new in 2026?

Significant tax-raising measures were announced in the original draft 2026 finance law which, together with the social security finance law, sets out France's annual budget.  

These would have meant extra to pay for many taxpayers in France, however the final version saw many of these removed from the text that was voted through.

Due to political complications, the voting of the final law was delayed until February (it is usually meant to happen by the end of the previous year), which was also the case for the 2025 finance law.

The original measures had included a freeze on the income tax bands, ending the 10% expenses allowance for pensioners and removing the income tax reductions for schooling expenses. As it is, these have all been retained.

The schooling expenses reduction – still at the same level as in the previous year – had been criticised by public accounts watchdog Cour des comptes as it benefits all households, regardless of income. Reportedly, the benefit (up to €183 per child) is, however, often forgotten in people’s declarations (see chapter 10, ‘Tax credits and reductions’).

Some new or recent changes to be aware of for your declarations of 2025 income this spring are listed below.

• There are several changes with regard to tax reductions for giving to good causes, including the fact that donations to charities in the domestic violence sector are, as of February 15, 2025 eligible for a 75% tax reduction (gifts at the start of the year are eligible for a standard 66%). The 75% applies within a total ceiling of €1,000 for gifts made until October 13, and the ceiling is raised to €2,000 (in total for the year) for gifts after this. A raised ceiling from €1,000 to €2,000 to benefit from the high 75% rate also applies to gifts to charities helping people in difficulty (eg. with food and shelter) from October 14 onwards, and the two types of gift are combined for this (ie. it is one €2,000 ceiling, not two). A 75% reduction for gifts to the Fondation du Patrimoine for restoring old churches is extended, as of February 15, 2025 to gifts to similar fondations d’utilité publique involved in preserving religious heritage.

• The 18% tax reduction for investments into small business is increased to 25% for investments in 2025 if the business had the Esus status (for certain ‘socially useful’ businesses).

• A 75% tax reduction for gifts for the victims of Cyclone Chido in Mayotte remains in place for gifts made up to May 17, 2025, within a limit of €2,000.

• Since September 2025, the tax offices have been applying individual tax-at-source rates to couple’s income streams, proportional to their own income rather than that of the household. If you still want an averaged-out rate applied instead moving forward, remember that you now need to choose this in your personal tax account.

• A temporary tax measure aimed at high earners – the contribution différentielle sur les hauts revenus – applies for the first time to 2025 income, but those expected to be affected were asked to pay an instalment of 95% of the estimated amount at the end of last year. The ‘contribution’ affects people with incomes of €250,000 for a single person (double for a couple) who pay less than 20% tax overall on their incomes (eg. due to use of various tax breaks). It represents the difference between their actual tax bill for the year and 20% of their taxable income. Anyone found to have paid too much in their instalment will receive a refund after their 2025 income is assessed. It will be applied again to incomes from 2026.

• As of last year, the impots.gouv.fr website has a new look more similar to information website service-public.gouv.fr. The espace particulier personal space has also been renamed mon espace Finances publiques and people are now routinely asked to use two-factor authentification to enter it (eg. obtaining a code sent to your email address or using an authenticator application on your phone as well as providing your password and fiscal number).  If you fail to correctly identify yourself, there may occasionally be situations where your account is blocked. In this case the tax authorities state that you need to wait about a week to receive a code by email to unblock it (if no code is received, call the tax office helpline on 0 809 401 401). The website's search engine has also been updated this year with integrated AI, so it will respond better even if you include typos or ‘everyday’ terms rather than technical tax terms. 
  

• As of 2026 income, note that the ceilings to benefit from the micro-Bic regime have been raised (see chapter 5, ‘Special micro regimes’).

• If you have a plan d’épargne retraite (see chapter 6, ‘Private pensions with tax breaks’) and are not able fully to deduct your money placed into it in a given year, due to the ceiling applied in your situation, as of 2026 it is possible to claim the benefit for up to five further years, instead of three previously. In another change, any money placed in these plans after age 70 is no longer tax deductible.

• If you employed someone in the home via the Cesu system in 2025, or paid for services from an accredited organisation for home-help services, you will be asked to provide details of the person or firm in the section for claiming your tax credits for this.

• If you declared on paper last year, you will not, as a default, receive a paper avis d'impôt in the post in the summer, but will need to opt in to this during the declaration process if you still want one (as opposed to just an online avis in your espace Finances publiques).

• Improvements to the impots.gouv app this year include the possibility of declaring overseas accounts, sending online secure messages to the tax office and declaring income that was subject to the auto-entrepreneur's optional prélèvement libératoire tax. 

• In some cases, this year income you received during the 2025 tax year from large online platforms such as Airbnb or eBay will be pre-filled in the relevant boxes from information passed on from the companies to the tax services.

  However, this will not always be the case and it is your responsibility to declare such incomes where required. Note that if you received such incomes via foreign platforms in foreign currencies, you will need to convert the amounts to euros for declaration. For some of these incomes known to the tax authorities you may also see a pop-up box informing you of the amounts known to them. This is for you to check. You may also be asked to select from a drop down menu the rubrique of the declaration in which you intend to declare these amounts.

Change to social charges

An important change, voted in the social security finance law for 2026, relates to the rate of the contribution sociale généralisée (CSG) social charge, which is levied on many forms of income/gains and is in some cases rising from 9.2% to 10.6%. Some kinds of income/gains are affected as of 2025 and some are only affected from 2026, and others are unaffected.

The change includes bank interest, dividends, shares capital gains, property capital gains and income from non-professional furnished rental. It does not affect social charges on work or pensions. It also does not affect ‘professional’ furnished accommodation landlords, or people who do non-professional furnished holiday rental but must nonetheless pay business social charges (ie. where they have annual revenues above €23,000).

Affected from 2025 income: non-professional furnished rental; shares and cryptocurrency capital gains.

Affected from 2026 income: bank interest, dividends.

Not affected: Assurance vie withdrawals; income from unfurnished rental (revenus fonciers), property capital gains.

Changes for holiday rentals and chambres d’hôtes

The taxation of furnished holiday accommodation (eg. gîtes and some Airbnbs) and chambres d’hôtes continues to be subject to change and complications (see chapter 6, ‘How to declare French rental income’ for a fuller discussion of this topic).

As of 2025 income, reduced tax allowances and ceilings for the benefit of the micro-Bic simple taxation system apply, deriving from 2024’s ‘Meur law’. 

Compared to the old rules, the Meur law is less favourable. The new rules provide a 50% allowance for star-classified holiday rentals and for chambres d’hôtes within a micro-Bic ceiling of €77,700 turnover; down from 71% and €188,700. Otherwise (for unclassified furnished holiday rentals), a 30% allowance applies within a limit of €15,000, down from 50% and €77,700 under the old, established rules.

These rules are clarified, for income for 2025 and 2026, at service-public.gouv.fr/particuliers/vosdroits/F32744. See also this page, with regard to who has to pay business-style social cotisations: tinyurl.com/meuble-cot. 

However, see also the following links if you carry out such activities on an auto-entrepreneur basis, concerning the putting off for a further year of these rules regarding tax and social charges: tinyurl.com/auto-ent-meub, tinyurl.com/urssaf-meuble, tinyurl.com/auto-meuble, tinyurl.com/heberge-micro. 

If you have moved into the régime réel with regard to your 2025 income due to the lowering of the ceiling then you should make a ‘form 2031’ declaration in the ‘espace professionnel’ (as opposed to your personal espace Finances publiques) on impots.gouv.fr, before May 5.

People with non-professional furnished rental income declared under the régime réel should also carry forward the profit or loss declared in the 2031 onto box 5NA (and following boxes) of their personal income tax declaration.

The tax authorities give the following examples:

Unclassified holiday rentals: If your turnover was more than €15,000 in 2024 and 2025, you have entered the régime réel.

Classified holiday rentals: If your turnover was more than €77,700 in 2024 and 2025, you enter the régime réel.

There is an additional complication in a clash of social security and tax laws.

The latest social security rules (see tinyurl.com/micro-ent-meub) state that a person who carries out furnished rentals cannot be considered to be in self-employment – potentially as ‘micro-entrepreneurs’ – if they have turnover less than €23,000. At the same time, tax rules say the ceiling for the micro-Bic simple taxation system is now just €15,000 for unclassified furnished rentals.

It is therefore no longer technically possible to do unclassified furnished rentals as a micro-entrepreneur, including having the option of the versement forfaitaire libératoire monthly or three-monthly fixed income tax system.

However, some people did in fact pay such income tax sums in the course of 2025.

As a result, these payments will be accepted, as a transitional measure. 

More detail is available on the latest furnished rental rules at on this official tax service bulletin: tinyurl.com/bofip-meubl.

We suggest taking professional advice (eg. from a tax lawyer or accountant) or seeking advice from professional bodies in the sector (Gîtes de France etc), if unsure how these changes apply to you.