Guide to the French tax system and how to pay income tax

Learn everything about taxes in France: what taxes you need to pay, when, how, and if you're eligible for tax allowances.

Jale

6 minute read

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Updated on 2 Feb 2024

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Living

Paying taxes in France can be confusing, especially when you’ve just moved to France. To help you navigate this complex tax system, we’re sharing what taxes you need to pay, when, how to file taxes, and which tax allowances you might be eligible for.

All expats living in France must pay taxes on any income or assets they own. Depending on your residence, you can be considered a resident or non-resident taxpayer in France.

You’re a resident taxpayer in France if

• Your primary residence is in France, which means you spend, which means you spend more than 183 days in a calendar year
• You carry out a professional activity in France
• You’re a full-time student in France
• You earn additional income in France, such as from rentals or investments.

As a French tax resident, you must pay progressive taxes (from 0% to 45%, plus a surtax) on your worldwide income. So aside from income generated in France, you need to declare your assets, earnings from employment, investments, dividends, bank interest, pensions, and property abroad.

In general, every month, part of your income will be withheld to pay taxes. This includes income from employment or rent. For other income sources, like investment or non-French income, you’ll need to pay it when you file your taxes annually.

You’re a non-resident taxpayer in France if

• You live in France for less than 183 days
• You earn some income in France

As a non-resident taxpayer in France, you’re subject to paying tax on your income earned in France. Thanks to dual taxation agreements with several countries, if you pay significant tax in France, you won’t need to pay tax in your home country on the same income. But make sure to inform the tax authorities in your home country about your tax obligation in France so they don’t double-tax you.

If you’re a student and have no income source in France, technically, you don’t have to pay taxes in France. But by filing a tax return, you can benefit from housing benefits and claim the excess tax credit as a refund.

If you’re a working student, you won’t be taxed on the following:

• You’re under 26, with an income of less than €4,618 per year
• Your internship grant is less than €18,473 per year
• Grants awarded based on social criteria
• Housing support

As a student, you’re liable to file a tax return on the following:

• If you’re over 25, any amount of income
• Internship or apprenticeship compensation over the annual minimum wage
• Financial grants paid by the government, if you’re a student at French École or military school
• Any income you’ve earned as a freelancer
• If you have a professional traineeship contract, regardless of your salary

Income or earnings generated from employment salaries, investments, dividends, bank interest, pensions, and property rent are all subject to income tax in France.

How much income tax you pay in France depends on your income and personal factors such as marital status, number of children, and whether you’re self-employed. If you’re self-employed, you get tax deductions and then pay the standard personal progressive rates on the remaining income.

For resident taxpayers, the personal income tax rates in France in 2022 are:

Non-resident French taxpayers need to pay a minimum 12% tax on income between €15,018 and €43,563 and 20% tax on income above this threshold.

The tax year in France is from 1st January until 31st December. Generally, you must file your tax return by mid-May of the following year. The exact dates will be announced in time by the French tax authorities.

In 2022, the deadlines for filing your tax return in France are as follows:

• Deadline for filing tax return by post: 19 May
• Online deadline for départements 1–19 and non-residents: 25 May
• Online deadline for départements 20–54: 31 May
• Online deadline for départements 50–101 and those living in Overseas France: 7 June

As of 2019, every French resident must pay tax online with their French tax number (SPI number). Failing to file your tax return online 2 years in a row will result in a €15 fine.

Keep in mind that if you’ve just moved to France, you’ll receive your tax number only after you file your first tax return in France.

1. To pay your taxes for the first time, you must complete your first income tax return on paper using form no. 2042. Have additional income sources? Fill out the respective forms: 2044 for rental income, 2047 for income from abroad, and 2042C for freelancing income.

2. After you fill out the forms, send them to the tax office in your city, alongside with your 1) marital status 2) postal address and 3) copy of proof of identity.

3. You’ll receive your tax number via email. Use this to create your personal account on the French tax website and pay your taxes by entering your tax number and date of birth.

You don’t need to file a tax return via post after your first year. Filing your tax return online via your personal account will make your life much easier as they’re typically pre-filled. You only need to check the details or correct something if there’s a change in your income or status.

Non-resident taxpayers in France can file their tax returns using form no. 2042 and send it to the non-resident French tax offices via post. This can’t be filed online and must be manually filled out every year.

Why it’s important to file a tax return

The tax rate used on your previous tax return will apply when you don't file your tax return. As a result, you may end up paying more taxes than you should. This is why it’s important to file your tax return (even if you don’t earn any income) and update it on time each year to benefit from a favorable tax rate and tax credit customized to you. To inform the tax office of changes to your salary or living situation, log in to your personal tax account and click on Espace Particulier, Gérer mon prélèvement à la source (manage my taxes), and finally on Signaler un changement.

In France, the tax applies to households rather than individuals.

1. Married couples and couples living under the Common Law Contract must file a joint tax return. Married couples and civil partners can opt for a standard tax rate for couples or an individual rate for each individual, depending on their income.
2. Couples without legal contracts must file 2 separate tax returns, even if they live in the same place.
3. Students over 25 must file their taxes individually.
4. Students between 18–25 can decide whether to file their taxes individually or be a part of their parents’ tax household.
5. Students under 18 are automatically attached to their parents’ tax household.

If you don’t wish to inform your employer of your personal status, such as your marital status, children, or expenses (such as alimony), the default “neutral” rate applies. Since the neutral rate is non-personalized, you may pay more tax than needed and not benefit from tax allowances, even if you’re qualified.

Depending on your age, marital status, and residency status, you can reduce your taxes.

1. 25% allowance on the alimony payments, up to €30,500 within the first year of the divorce settlement.
2. 75% allowance on the payments to charity, up to a maximum tax reduction of €479.
3. 25% allowance for long-term nursing care, with maximum costs of €10,000.
4. 50% tax credit for domestic help (child care, au-pair, gardening, assistance for the elderly) with a maximum annual expenditure of €12,000.
5. 50% tax credit for out-of-home childcare expenses (limited to €2,300 per child) for children under 6.

Tax allowance for the elderly and the disabled

If you’re over 65, you can benefit from an income tax reduction, depending on your income. It also applies to anyone with a level of disability of at least 40%, regardless of age.

Here’s the tax deduction per person based on the income:

Reduction for child’s education

You’ll benefit from a tax allowance for your child’s education costs.

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