Key points to know for your income tax declaration

The family quotient system

A key element of how income tax is calculated in France is the quotient familial (family quotient).

This system allocates a number of ‘parts’ to your household. The more people in your household – such as a spouse, civil partner or dependants – the more parts you have, which can reduce your overall tax bill.

The aim is to reflect the fact that a given income supports a household differently depending on its size.

You do not need to calculate this yourself – the French tax authorities apply it automatically.

How it works

France applies progressive tax bands to income. However, for households (rather than single individuals), the calculation is adjusted using the family quotient:

1. Your household’s net taxable income is divided by the number of parts.

2. Tax bands are applied to this reduced figure.

3. The resulting tax is then multiplied by the number of parts.

This means larger households benefit from lower tax rates on a greater share of their income.

How ‘parts’ are allocated

• A single person: 1 part

• A couple (married or in a recognised civil partnership/Pacs): 2 parts

• First and second dependent children: ½ part each

• Third and subsequent children: 1 part each

Dependants can include:

• children under 18 (or older if still financially dependent and in education)

• certain adults living with you who are dependent, including those with a recognised disability

Additional parts may be granted in specific situations, including disability, single parenthood or widowhood.

There is also a cap on the tax advantage that the family quotient can provide, which mainly affects higher-income households.

Social charges (prélèvements sociaux)

In addition to income tax, France levies social charges on most types of taxable income and capital gains. These help fund the country’s social security and welfare system.

They are separate from income tax and generally do not benefit from the same allowances or reductions.

What are they applied to?

Social charges may apply to:

• employment income and pensions

• investment income (interest, dividends, capital gains)

• rental income

Some savings products, such as regulated accounts (eg. Livret A), are exempt.

Main rates

The principal social charges are:

• Contribution sociale généralisée (CSG)

• Contribution au remboursement de la dette sociale (CRDS)

• Prélèvement de solidarité

Pensions are usually subject to lower rates, depending on income level, and some lower-income pensioners may be partially or fully exempt.

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.

Lower charges for many foreigners in France

Historically, there was controversy as to what kinds of income France could levy social charges on for people, including residents, who are affiliated to another country’s social security system.

A 2015 EU court ruling said CSG and CRDS should not be levied on non-professional rental income (furnished or unfurnished) coming from French properties, or property capital gains, for EU/EEA/Swiss residents. The idea was that this group is not a cost to the French health system so should not have to contribute towards it via these charges. Prélèvement de solidarité (7.5%), however, remains payable. 

France argues that the latter, which was created since the court ruling, is only a tax funding general solidarity programmes and this appears to be accepted legally.

People with EU/EEA/Swiss state pensions who live in France with no French pension income but with an S1 form to show they are not a burden on the French health system also qualify and pay just 7.5% on any investment and capital income. They can be patients of the French health system but another country in effect covers the costs.

The Brexit treaties maintained the above rules for UK residents and UK state pensioners living in France who remain attached to UK social security and have an S1 to prove it. You can read what the French authorities say about this at tinyurl.com/bxt-tx-partic. This is protected on the one hand by the Withdrawal Agreement (for Britons who were living in France before Brexit) and by the Trade and Cooperation Agreement, which contains comparable sections for those moving over post Brexit.

English-speaking tax lawyer Laurent Gravelle from Sophia Antipolis said the above would not include people living in the UK who do not work nor claim a UK state pension but who claim a French state pension. He said they should normally have a French S1 for UK healthcare and are seen as a burden on French social security and thus pay CSG and CRDS.

If you have had full charges taken off incomes incorrectly, you can apply for a refund.

Key points to note

• Social charges are charged in addition to income tax.

• They are shown separately on your annual tax statement (avis d’imposition).

• Some elements may be partially deductible from taxable income.

Currency conversions

If you receive income in a foreign currency, it must be converted into euros for your French tax return.

Officially, you should use the exchange rate on the date the income was received. In practice, for regular income streams, the use of an average annual exchange rate is generally accepted.

Declaring foreign income

French tax residents must declare worldwide income, even if it is not ultimately taxed in France.

In some cases, foreign income is:

• taxed in France, or

• taken into account only, meaning it can affect the tax rate applied to other income without being taxed itself

This prevents individuals from benefiting from multiple countries’ tax-free allowances.

France’s tax treaties – including with the UK – ensure that double taxation is avoided, typically through tax credits or rules allocating taxing rights between countries.

Declaring your income

Most people are required to declare income online via the official tax website.

Paper declarations are generally limited to:

• first-time declarations

• those unable to use online services

Online declaration offers:

• later deadlines

• the ability to amend submissions

• easier access to previous returns and tax documents

Getting help

Support is available if needed:

• Local tax offices may provide in-person assistance.

• France Services centres offer free help with administrative procedures.

• Some areas provide access to public computers or guided support.

Online declarations usually open between April and June, depending on your location.