Income Tax in France 2026
Although the original draft budget proposed a freeze on tax bands, the final outcome is an increase of +0.9%, a concession agreed by the government to avoid a motion of censure by the Socialist Party. This follows increases of +1.8% in 2025, and +4.8% in 2024, in line with inflation.
On this basis, the following table shows the 5 bands for 2026. The bands for 2026 will apply for income earned in 2025. The tax rates remain unchanged.
As can be seen, no tax will be payable on net taxable income under €11,600 and thereafter taxed on a sliced basis, using the 'parts' system of household size. Under this system the household’s total net taxable income is divided by the number of “parts” allocated to the household. The progressive tax bands are then applied to the income per part, not to the full household income. The resulting tax is multiplied by the number of parts to give the total household income tax liability. As a result, a couple with, say, an income of €45,000 would only be in the 11% tax rate bracket.
Rate | Income | ||
11% | €11,601 > £29,579 | ||
30% | €29,580 > €84,577 | ||
41% | €84,578 > €181,917 | ||
45% | >€181,917 |
These bands and rates do not apply to non-residents, who pay a flat rate of 20% on French sourced income.
In addition to income tax, taxpayers are also liable for the social charges. Details of the rates that apply this year on pension income can be seen at Social Charges on Pension Income 2026.
Most capital income is taxed using a 'flat tax' (PFU) of 31.4% (including social charges), or by band rates, by option. The rate has increased from 30% in 2025 due to an increase in the social charges. We will come back to this topic later.
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