Most pensions are subject to French social charges (prélèvements sociaux), although the rate that applies varies according to the recipient’s income level.
The charges are made up of three separate levies - CSG, CRDS and CASA. The main charge - the Contribution Sociale Généralisée (CSG) — is applied at different rates depending on the income threshold. The income thresholds have been increased by 1.8% for inflation for this year.
The table below shows the rates of CSG that apply at different income levels, for a single person and a couple. The figures in the first column are for a single person, and those in the second column for a couple. They show, for example, that a couple with an income below €20,016 would be exempt.
0% | <€13,048 | <€20,016 |
3.8% | <€17,057 | <€26,167 |
6.6% | <€26,472 | <€40,604 |
8.3% | >€26,472 | >€40,604 |
Higher thresholds apply where there are dependent children or other dependents in the household.
These thresholds can be misleading because the rate applied to pension income does not depend solely on the amount of pension received. Instead, it is based on total taxable income, specifically the Revenu Fiscal de Référence (RFR) shown on the annual tax assessment.
The transition from the reduced rate of CSG (3.8%) to a higher rate (6.6% or 8.3%) is applied only if your RFR crosses the reduced scale threshold two years in a row. This concession does not apply if you go from the zero rate to the 3.8% rate or the rate of 6.6% at the 8.3% rate.
For couples who are jointly assessed for tax purposes, a single common rate applies to both spouses. This is the case even if one spouse would otherwise qualify individually for a lower rate or an exemption.
To the CSG rates, must be added the social charges CRDS at 0.5% and CASA at 0.3%. However, CASA is not payable by those whose CSG rate is 0% or 3.8%. As a result, the standard combined rate on pension income at the highest level is 9.1%.
For social charge assessments made in 2026, the reference income will be that of 2024, as indicated on the 2025 tax notice.
Exemptions
Other than exemption due to income, those European and British nationals who hold an S1 certificate of health exemption are exempt from the social charges on pension income. Those who hold a private health policy in France (and not merely a ‘top-up’ policy), and who are not also in the State health system, are also exempt on pension income.
In addition, certain double taxation agreements exempt pension income entirely from French social charges. This applies, for example, to US pensions. It also generally applies to ‘government service pensions', ie, civil service, military, local government. By contrast, most state pensions are fully subject to French social charges.
These exemptions are significant, for it means that many foreign residents pay little or no income tax or social charges in France.
Anyone who believes they qualify for an exemption should take particular care when completing their income tax return and should verify that their tax assessment is correct. Each year many taxpayers discover they have been wrongly charged social charges.
Deductibility of CSG
Part of the CSG paid on pension income is deducted from French income tax. The deductible portion depends on the applicable CSG rate:
At a CSG rate of 8.3%, 5.9% is deductible;
At 6.6%, 4.2% is deductible;
At 3.8%, the full amount is deductible.
This deduction is applied in the year following the payment of the charges. Naturally, it only benefits those who are liable to income tax in the first place.
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