Who takes your tax and how

Many kinds of regular income will be subject to tax-at-source or estimated PAS tax instalments, depending on the type of income.

See below for examples and details of how the tax will be deducted.

INCOME SUBJECT TO TAX-AT-SOURCE 

- French employment salaries 

- French retirement and disability pensions 

- French daily sickness benefits 

- French unemployment benefits 

Who takes the tax on these incomes?

French employers, pension funds, social security bodies or employment centres. Rates used depend on your level of income.

INCOME SUBJECT TO TAX INSTALMENTS

- Self-employment income (eg. micro-entreprise) 

- Income from unfurnished rentals in France 

- Income from furnished rentals in France

- Maintenance payments 

- UK state and private pension income

- Salary income when you are a cross-border worker, living in France but employed by a company across the border in another country

Who is taking the tax on these incomes? 

The tax authorities deduct this on a monthly or quarterly basis from your bank account. Rates vary and are based on your previous declaration which for this year is the 2025 declaration of 2024 income.

INCOME THAT IS NOT AFFECTED BY THE ABOVE SYSTEMS:

- Investment income (bank interest, dividends, etc.)*

- Capital gains on investments

How are these taxed? 

French banks and other providers will, in most cases, take off 31.4% ‘flat tax’ (12.8% tax + 18.6% social charges). This is provisional and is only confirmed after you have declared the year’s income and only if you do not opt to use the ordinary rising bands on investment income. Foreign investment income is accounted for once you declare it in your annual return.

Note that people with S1 forms (because another country pays for their healthcare) are only liable to pay 7.5% of Prélèvement de Solidarité on investment incomes. If too much is taken off by the bank, this will be refunded once your income declaration is made for the year.

UK government pension (and all US pensions) and UK or US rental income

Who takes the tax off these incomes? 

The UK and US governments. This income is not taxed in France although it must be declared to France by French tax residents and will be taken into account when calculating their tax bands. 

Property capital gains

Who takes the tax off these? 

The notaire. Capital gains tax and social charges are at 36.2% (19% tax + 17.2% social charges) of the taxable gain after allowances for length of ownership. Social charges are reduced to 7.5% for non-residents who sell a French property and live in an EU/EEA country or in Switzerland or the UK (see also chapter 6, 'Lower charges for non-residents/S1 holders').

* Regulated savings accounts (Livret A, Livret de développement durable, etc.) are tax and social charge free and so are not affected.