##Social Charges in 2024
Most readers are likely to be familiar with the social charges (prélèvements sociaux), often also referred to by expatriates as 'the second French income tax'.
Almost all sources of personal income and capital gains are liable to the charges, but they comprise four different taxes, not all of which apply to all income, and in the case of CSG apply at different rates for pension income.
The rates that apply next year for different types of income are shown in the table below. They remain unchanged from last year.
Contribution Sociale Généralisée (CSG) | 9.2% | 8.3% / 6.6% / 3.8% | 9.2% / 0.0% |
Contribution à la Réduction de la Dette Sociale (CRDS) | 0.5% | 0.5% | 0.5% / 0.0% |
Contribution Additionnelle deSolidarité pour l'utonomie (CASA) | 0% | 0.3% / 0.0% / 0.0% | 0.0% |
Prélèvement de Solidarité (PS) | 0.0% | 0.0% | 7.5% |
Total | 9.7% | 9.1% / 7.4% / 3.8%** | 17.2% / 7.5%* |
There are certain reductions* and exemptions** to the social charges, the details of which are set out in our article Social Charges, S1s and Exemptions.
As can be seen from the table, different rates of CSG apply on pensions, depending on income.
The table below shows the rates that apply to different income thresholds for a single person and a couple. The income thresholds have been increased by 5.4% for inflation for next year.
0% | <€12,230 | <€18,760 |
3.8% | <€15,988 | <€24,526 |
6.6% | <€24,813 | <€38,509 |
8.3% | >€24,813 | >€38,509 |
These thresholds are higher for those with children or other dependents in the household.
To these basic CSG rates for pension income must be added the 'CRDS' (Contribution au remboursement de la dette sociale), payable at the rate of 0.5%, and 'CASA' (Contribution additionnelle de solidarité pour l’autonomie) at the rate of 0.3%. Those on a CSG rate of 0% or 3.8% do not pay CASA. That means the basic total rate on pension income is 9.1%.
The thresholds are, however, misleading, as the rate that will be used for pension income will depend on total taxable income, not merely pension income. That is to say it will depend on the ‘Revenu Fiscal de Référence' of the household, as shown on their tax notice. The reference year used for assessment in 2024 is 2022 income, as notified on the 2023 tax notice.
This means that for a couple who are taxed on a joint basis a common rate applies, irrespective if one of the spouses may otherwise be entitled to a reduced rate or exemption.
In the event of an increase in income, a household on the lowest (0% or 3.8%) bands must have exceeded the thresholds for two consecutive years to be subject to the intermediate rate or the standard CSG rate.
Under some double taxation treaties pension income is entirely exempt from social charges, as is the case for US pensions. By contrast, UK state pensions are entirely taxable in France, although government service pensions are exempt (see article above).
Those who may be exempt need to carefully complete their income tax return and ensure that their tax notice is correct, as each year we hear from scores of readers who have been incorrectly taxed on the social charges. The errors also arise from an incorrect tax return having been made.
The social charge CSG is partially deductible against French income tax, which therefore reduces the effective rate. The rate of deduction depends on the household's basic rate, but for pension income charged at 8.3% the deduction is 5.9%. At 6.6% it is 4.2% and at the rate of 3.8% it is entirely deductible. The deduction occurs in the year following imposition.
It is not deductible for those who have adopted the flat-tax (Prélèvement forfaitaire unique - PFU) for investment income and gains.
Related Reading:
