Europe
France tax rates 2026
A high-tax residence system with progressive income tax and surtaxes on high incomes. There is also a real-estate-only wealth tax, known as IFI, and steep inheritance tax.
Worldwide (residence-based)
Last verified
The taxes
| Personal income (top) | 45%Progressive, rising to 45% above ~EUR 180k per part. On top of that sits the exceptional high-income contribution, CEHR, at 3-4%, and a 2025-2026 minimum tax, CDHR, designed to keep the effective rate near 20% on very high incomes. |
|---|---|
| Corporate income | 25% |
| Capital gains | A flat 30% rate, made up of the PFU: 12.8% income tax plus 17.2% social levies. Interest and gains will climb toward ~31.4% in 2026 as social levies rise. |
| VAT / TVA | 20% |
| Dividends (WHT) | 25% |
| Interest (WHT) | 0%, though 75% applies to payments made to non-cooperative jurisdictions. |
| Royalties (WHT) | 25% |
| Social security (employee) | ~20-23% |
| Social security (employer) | ~40-45% |
| Wealth tax | IFI at 0.5-1.5% on net real-estate wealth above EUR 1.3m. |
| Inheritance / estate | Up to 45% in the direct line, rising to as much as 60% between unrelated persons. |
| Property tax | Taxe fonciere applies to owners. Taxe d'habitation has been abolished on primary residences. |
| Other | A high-income surtax, CEHR, of 3-4%, plus CSG/CRDS social levies on income. |
How the system works
- Tax system
- Worldwide (residence-based)
- Foreign income
- Taxed (worldwide)
- Taxes by citizenship
- No
- Exit tax
- Yes, leaving has a cost
- CFC rules
- Yes
- CRS
- Participating
A special regime for new arrivals
Impatriate regime (Art. 155 B CGI): the impatriation bonus is exempt, there is a 50% exemption on certain foreign passive income, and IFI is limited to French real estate, for up to 8 years.
Rates checked July 2026: the top marginal income tax rate, the standard VAT rate and the main corporate rate.
Ways to relocate to France
The residency and citizenship routes that lead here, weighed against the tax picture above.