Understanding how French income tax works is essential if you live in France, or are planning to move there. The 2026 French tax return, filed in spring 2026, covers income earned in 2025, and while the tax rates themselves remain unchanged, the updated tax brackets and rules still matter for expats managing income across borders.
This article explains how French income tax works in 2026, the official tax bands, how the family quotient system affects your bill, and what expats need to watch out for, especially when declaring foreign income and assets.
Table of contents
What is French income tax?
French income tax (impôt sur le revenu) is a progressive tax applied to your net taxable income.
Instead of taxing all your income at one rate, France divides income into bands (tranches), each taxed at a different percentage. Only the portion of income that falls within each band is taxed at that rate.
France also uses a family-based calculation system, called the quotient familial, which adjusts tax based on household size rather than treating each individual in isolation.
> You might be interested in this article: What taxes do expats pay in France?
French income tax brackets for 2026
(Income earned in 2025)
For the 2026 declaration, the official income tax brackets are:
- Up to 11,497 €: 0%
- 11,498 € – 29,315 €: 11%
- 29,316 € – 83,823 €: 30%
- 83,824 € – 180,294 €: 41%
- Over 180,294 €: 45%
The rates have not changed, but the thresholds have been adjusted upward, meaning a smaller portion of income is taxed at higher rates for many households.
Example: Calculating French income tax in 2026
Let’s consider an example: Single taxpayer, 1 tax share, net taxable income of 30,000 €.
- 0 € → 11,497 € at 0% = 0 €
- 11,498 € → 29,315 € at 11% = 1,959.98 €
- 29,316 € → 30,000 € at 30% = 205.50 €
Total income tax: 2,165.48 €
That represents an average tax rate of around 7.2%, even though the marginal rate reaches 30%. This illustrates how progressive taxation works in practice.
Understanding the family quotient system (quotient familial)
The family quotient system divides your household income by a number of tax shares (parts), applies the tax scale to one share, then multiplies the result back up.
Number of tax shares
- Single person: 1 share
- Married or PACSed couple: 2 shares
- First and second child: +0.5 share each
- Third child and beyond: +1 share each
Important cap to know
The tax benefit from additional shares is capped.
For 2026, the tax saving is generally limited to 1,791 € per half-share (plafonnement du quotient familial).
This cap mostly affects higher-income households and is an important planning point for expat families.
> You might be interested in this article: Income taxes, social charges and other costs as an auto-entrepreneur in France
Marginal vs average tax rate (why this matters)
- Marginal tax rate (TMI): the rate applied to your last euro of income
- Average tax rate: total tax divided by total income
Many expats worry when they “hit” the 30% or 41% bracket, but in reality, their overall tax burden is usually much lower.
When do you file French income tax in 2026?
- The 2026 tax return (for 2025 income) opens in April 2026
- Filing deadlines vary by department and are announced each spring
- Online filing is mandatory if your home is connected to the internet and you are able to file online
Always check impots.gouv.fr or Service-Public each year for the exact dates.
Tax residency: Why it matters for expats
If you are considered tax resident in France, you must declare your worldwide income, not just French income.
You are generally tax resident if:
- France is your main home, or
- You spend most of the year there, or
- Your main professional or economic interests are in France
Foreign income and double taxation
Expats often have income from multiple countries, such as:
- US pensions or Social Security
- Rental income from property abroad
- Dividends and investment income
France has double taxation treaties (including the US–France tax treaty) to prevent the same income being taxed twice, but you still must declare it.
Treaties usually work via:
- Tax credits, or
- Exclusive taxing rights assigned to one country
> You might be interested in this article: Avoiding double taxation: A guide to the France-US tax treaty for American expats
Declaring foreign accounts and assets
If you live in France, you must declare:
- Foreign bank accounts
- Foreign life insurance
- Foreign investment accounts
- Certain digital asset accounts
This is done using Form 3916 / 3916-bis, filed with your income tax return.
Failure to declare can result in significant penalties, even if no tax is due.
Common types of taxable income in France
French income tax can apply to:
- Employment income
- Self-employment or business income
- Rental income (French and foreign)
- Dividends and interest
- Pensions (public and private)
Each category has its own rules, deductions, and reporting forms.
Allowances, deductions and reductions
Some common tax benefits include:
- Childcare expenses
- Alimony payments
- Charitable donations
- Certain energy-efficiency works
Standard 10% deduction
Employment income automatically benefits from a 10% deduction for professional expenses, subject to official minimum and maximum limits.
Practical tips for expats filing in France
- Keep everything: payslips, pension statements, bank records, investment reports
- Declare first, optimise second: omissions cause more problems than over-declaration
- Use a tax advisor if you have foreign income or assets
- Don’t ignore letters from the tax office, French tax authorities are surprisingly accessible
Final notes: French income tax in 2026
The 2026 tax framework remains stable and predictable, but expats must understand:
- How progressive taxation really works
- The impact of the family quotient
- The obligation to declare worldwide income and foreign accounts
Most surprises come not from high rates, but from misunderstanding residency, reporting rules, and cross-border income. If you’re moving to France, retiring there, or already living across two tax systems, getting clarity early can save you years of stress, and costly mistakes.
Updated January 2026
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