Income Bands (€)Applicable to 2025 Taxable Income | % |
| Up to 11,600 | 0 |
| Between 11,600 and 29,579 | 11 |
| Between 29,579 and 84,577 | 30 |
| Between 84,577 and 181,917 | 41 |
| In excess of 181,917 | 45 |
Income per part (€) | % |
| On up to 11,497 | 0 |
| Between 11,497 and 29,315 | 11 |
| Between 29,315 and 83,823 | 30 |
| Between 83,823 and 180,294 | 41 |
| 180,294 and above | 45 |
An extra income tax charge applies to households with a net worldwide taxable income (revenu fiscal de référence as stated on their tax assessment) in excess of:
This extra income tax charge applied for the first time to 2025 income and is set to remain until the French public deficit falls below 3% of GDP, as per the 2026 French tax budget. The household’s taxable income thresholds which trigger this extra levy are the same as for the CEHR.
The extra tax charge is determined as the difference between a theoretical and reconstituted tax liability calculated on the estimated taxable income for the whole year and 20% of the total taxable worldwide income known as Revenu Fiscal de Référence.
In simple terms, the aim of the CDHR is to bring the liability of higher earners up to a 20% minimum effective rate if they fall short. 95% of any extra tax liability thus determined, must be paid between 1 and 15 December, and triggers a 20% penalty if late.
Households with a worldwide taxable income above certain limits must ensure that they apply a payment on account in respect of any non-French dividends, directors’ fees or interest they receive. This requires the filing of forms 2778-DIV and/or 2778-Int and payment of the levy before the 15th of the month following the receipt of the income. The limits are currently fixed at €25,000 for single taxpayers and €50,000 in respect of interest and €50,000 (single) or €75,000 (couple) for dividends and directors’ fees.
The IFI “Impôt sur la Fortune Immobilière” applies to French households with net realty in excess of €1,300,000, to include real estate and shares in real estate holding entities and certain property financial investments (SICAV, SCPI, FCP etc.). Newcomers to France may be exempt from wealth tax on their non-French real property in the first five years of their residence.
The IFI also applies to non-residents but only in respect of their French assets (including shares and rights in French property holding entities). The penalty for late filing is 10% which may cumulate with the 10% penalty for late payment.
Taxable Wealth (€) as at 1 January 2026 | % |
| Up to 800,000 | 0.00 |
| Between 800,00 and 1,300,000 | 0.50 |
| Between 1,300,000 and 2,570,000 | 0.70 |
| Between 2,570,000 and 5,000,000 | 1.00 |
| Between 5,000,000 and 10,000,000 | 1.25 |
| Above 10,000,000 | 1.50 |
(CSG), Contribution au Remboursement de la Dette Sociale (CRDS), Prélèvement Social (PS) and Prélèvement de solidarité (PSol).
Base | CSG | CRDS | PSol | Casa | Total | Deductible CSG % |
| Investment, rental income property & investment gains | 10.6 | 0.50 | 7.50 | 0.00 | 18.6 | 6.8 |
| Salaries and non-salaried income | 9.20 | 0.50 | 0.00 | 0.00 | 9.7 | 6.8 |
| Pensions including pre-retirement pensions | 8.30 | 0.50 | 0.00 | 0.30 | 9.1 | 5.9 |
Individuals | CGT | PSOL% | CSG & CRDS% | Total% |
| Affiliated to the French sécurité sociale or those who are not affiliated to an EEA/Swiss/UK NI regime | 19 | 7.5 | 9.7 | 36.2 |
| Affiliated to an EEA/Swiss/UK NI regime excluding the French social security regime | 19 | 7.5 | 0 | 26.5 |
Residents outside the EEA must appoint a fiscal representative to deal with their French CGT obligations if their share of the French asset's disposal value exceeds €150,000.
Commercial company & trusts are subject to corporation tax rules and rates on their property gain.
Net taxable gains (€) | % |
| Up to 50,000 | 0 |
| Between 50,000 and 100,000 | 2 |
| Between 100,000 and 150,000 | 3 |
| Between 150,000 and 200,000 | 4 |
| Between 200,000 and 250,000 | 5 |
| In excess of 250,000 | 6 |
Taper relief table for the main 19% CGT rate and the extra charge, leading to an exemption after 22 years:
| Years of ownership | Taper relief % |
| from 6 and 21 years | 6 |
| 22nd year | 4 |
Taper relief table for social contributions, leading to an exemption after 30 years:
| Years of ownership | Taper relief % |
| from 6 and 21 years | 1.65 |
| 21st year | 1.60 |
| From 22 to 30 years | 9 |
FOR GIFTS MADE IN 2026 | |
| Gift Value (€) | % |
| Up to 8,072 | 5.00 |
| Between 8,072 and 15,932 | 10.00 |
| Between 15,932 and 31,865 | 15.00 |
| Between 31,865 and 552,324 | 20.00 |
| Between 552,324 and 902,838 | 30.00 |
| Between 902,838 and 1,805,677 | 40.00 |
| In excess of 1,805,677 | |
2026 GIFTS & INHERITANCE TAX | |
Estate Value (€) | % |
| Up to 8,072 | 5.00 |
| Between 8,072 and 12,109 | 10.00 |
| Between 12,109 and 15,932 | 15.00 |
| Between 15,932 and 552,324 | 20.00 |
| Between 552,324 and 902,838 | 30.00 |
| Between 902,838 and 1,805,677 | 40.00 |
| In excess of 1,805,677 | 45.00 |
2026 GIFTS & INHERITANCE TAX | |
Estate Value (€) | % |
| Less than 24,430 | 35.00 |
| 24,430 plus | 45.00 |
Cash gifts of up to €100,000 per donor to children or grandchildren may be exempt provided these are used within six months by the recipient to purchase a new-build property or one under construction.
Cash gifts invested in renovation projects that meet certain environmental criteria may also benefit from the exemption if the donee owns the property and it is used as their main home for at least five years.
Uncles or aunts who do not have any children of their own may award this tax-free gift to their nephews or nieces. Each donee can receive up to a total of €300,000 in tax free gifts from qualifying donors.
This specific one-off extra tax-free allowance may be used up 31 December 2026.
For French tax advice or assistance with the preparation of your French tax returns (for non-residents or residents of France), please get in touch.
