Updated for 2026
France Tax Rates 2026: Personal Income Tax, Corporate Tax, Capital Gains, IFI and VAT
France applies progressive personal income tax, a standard 25% corporate income tax, value added tax (TVA), taxes on investment and property gains, and the real-estate wealth tax known as IFI. This page summarises the principal rates and rules applicable in 2026 and links to current French tax administration guidance.
France Personal Income Tax Rates for 2026
The 2026 French income-tax scale applies to income received in 2025. France uses the family quotient system, so taxable household income is divided by the applicable number of tax parts before the progressive scale is applied.
| Taxable income per tax part | 2026 rate |
|---|---|
| Up to €11,600 | 0% |
| €11,601 to €29,579 | 11% |
| €29,580 to €84,577 | 30% |
| €84,578 to €181,917 | 41% |
| Over €181,917 | 45% |
Contribution on High Incomes
France also applies special contributions to certain high-income taxpayers. The contribution différentielle sur les hauts revenus (CDHR), codified in Article 224 of the French General Tax Code, is designed to ensure a minimum effective level of 20% for qualifying French-resident households whose reference income exceeds €250,000 for a single, divorced, separated or widowed taxpayer, or €500,000 for a jointly taxed household, subject to the detailed statutory calculation and relief rules.
France Corporate Income Tax Rate
The standard French corporate income tax (impôt sur les sociétés) rate is 25% for financial years beginning on or after 1 January 2022. This remains the standard rate in 2026.
Qualifying small and medium-sized companies with turnover not exceeding €10 million may benefit from a reduced 15% rate on the first €42,500 of taxable profit, subject to the ownership, capital and other statutory conditions. Profit above the qualifying band is generally taxed at 25%.
France Capital Gains and Investment Income
Financial investments and securities
Investment income and gains on securities are generally subject to the prélèvement forfaitaire unique (PFU), unless the taxpayer opts for progressive-scale taxation where permitted. For income and securities gains realised from 2026, the income-tax component remains 12.8%, while current social levies applicable to relevant investment income are 18.6%, producing a combined rate of 31.4% in the standard case. Special rules and exemptions continue to apply to particular products and situations.
Real estate capital gains
A gain on the sale of a taxpayer's principal residence is generally exempt where the statutory conditions are met. Taxable gains on other French real estate are generally subject to income tax at 19% plus applicable social levies. A holding-period allowance applies: full exemption from the 19% income-tax component is generally reached after 22 years of ownership, while the social-levy exemption is generally reached after 30 years.
An additional surtax can apply to certain high-value taxable real-estate gains exceeding €50,000, subject to the statutory computation and exclusions.
France Real Estate Wealth Tax (IFI)
The former general wealth tax is no longer the applicable regime. France now levies the impôt sur la fortune immobilière (IFI), which is focused on taxable real-estate assets. A taxpayer is generally within the scope of IFI when net taxable real-estate wealth exceeds €1.3 million.
| Net taxable real-estate wealth | IFI rate |
|---|---|
| Up to €800,000 | 0% |
| €800,001 to €1,300,000 | 0.50% |
| €1,300,001 to €2,570,000 | 0.70% |
| €2,570,001 to €5,000,000 | 1.00% |
| €5,000,001 to €10,000,000 | 1.25% |
| Over €10,000,000 | 1.50% |
Although the rate schedule begins at €800,000, the general liability threshold is net taxable real-estate wealth exceeding €1.3 million. A statutory discount applies to certain taxpayers whose net taxable property falls within the specified entry band.
VAT Rates in France
France's principal VAT (TVA) rates in metropolitan France are 20%, 10%, 5.5% and 2.1%. The correct rate depends on the product or service and on specific statutory conditions.
| VAT rate | General application |
|---|---|
| 20% | Standard rate for most taxable goods and services |
| 10% | Intermediate rate applying to specified activities such as qualifying passenger transport, restaurant services and certain residential work |
| 5.5% | Reduced rate for specified necessities and qualifying goods or services, including certain food, books and qualifying energy-renovation work |
| 2.1% | Special reduced rate for specified items such as qualifying press publications and certain reimbursed medicines |
Different VAT rules and rates can apply in Corsica and French overseas territories, and territorial exemptions may also apply.
Withholding Tax and Non-Resident Taxation in France
Non-residents are generally taxable in France on French-source income, subject to the provisions of an applicable double-tax treaty. French-source salaries and pensions paid to non-residents can be subject to a specific non-resident withholding mechanism using 0%, 12% and 20% bands, with annually adjusted thresholds.
For the final income-tax computation on French-source income, non-residents are generally subject to minimum rates of 20% up to €29,579 of relevant taxable income for 2025 income and 30% above that level, unless application of the taxpayer's worldwide average rate produces a lower permitted rate.
Dividends paid to an individual who is not resident in France are generally subject to a domestic withholding rate of 12.8% in 2026, subject to any more favourable rate or exemption provided by a tax treaty. Different rules can apply to corporate recipients and to payments involving non-cooperative jurisdictions.
Foreign Companies and Permanent Establishments
Foreign companies can be subject to French corporate income tax on profits attributable to business carried on in France, including through a French permanent establishment, subject to French domestic rules and the relevant tax treaty. The normal corporate income tax rate is 25%.
Business Losses, Deductions and Tax Credits
France permits the deduction of qualifying business expenses and depreciation in accordance with the French General Tax Code. Tax losses can generally be carried forward subject to statutory limits, and limited carry-back relief can apply. France also maintains significant tax-incentive regimes, including the research tax credit, subject to detailed qualifying conditions.
Group taxation, controlled-foreign-company rules, interest-deduction restrictions and other anti-avoidance provisions can apply to companies and groups. International businesses should consider both French domestic law and applicable EU and treaty provisions.
Automatic Exchange of Tax Information
France participates in international automatic exchange of financial-account information under the OECD Common Reporting Standard and EU administrative-cooperation rules. French tax residents may have reporting obligations for qualifying foreign bank accounts, financial accounts, insurance contracts and other offshore assets. The reporting and penalty rules are detailed and should be checked against the current official instructions for the relevant year.
Official French Tax Resources
- BOFiP - 2026 progressive income-tax scale
- French Tax Administration - corporate income tax
- French Tax Administration - business taxation and VAT
- French Tax Administration - IFI calculation and rates
- French Tax Administration - taxable real-estate capital gains
- French Tax Administration - non-resident taxation
- French Tax Administration - non-resident dividend withholding
- BOFiP - contribution différentielle sur les hauts revenus (CDHR)