How Income Tax Works in France (2026)
Jules de Bruin
Editor
Updated: June 2026 | Found helpful by 4 others
- Expats
- Residents
Updated June 2026. French income tax (impôt sur le revenu) is progressive, charged in tranches under a yearly barème set by Parliament. Since 2019 it is collected by prélèvement à la source (withheld monthly), yet almost everyone still files an annual déclaration de revenus on impots.gouv.fr. Tax applies to the foyer fiscal via the quotient familial, and résidents fiscaux are taxed on their worldwide income.
Key takeaways
- Income tax is progressive, applied in tranches under the annual barème (see impots.gouv.fr for current thresholds and rates).
- Prélèvement à la source withholds tax monthly from salaries and pensions since 2019.
- You still file an annual déclaration de revenus each spring, normally online on impots.gouv.fr.
- Tax is assessed on the foyer fiscal, and the quotient familial (parts) reflects household size.
- Résidents fiscaux are taxed on worldwide income, with tax treaties to avoid double taxation.
Who pays income tax in France?
You pay French income tax if you are a résident fiscal. Under French law you are generally resident if your main home (foyer) is in France, you spend more than 183 days a year in France, or your main professional or economic activity is in France. Meeting any one of these tests is enough.
Residents are taxed on worldwide income, while non-residents are taxed only on French-source income such as French salary or French rental income. The detailed residency rules and edge cases are set out by the DGFiP on impots.gouv.fr and explained on service-public.fr.
How is income tax calculated with the barème?
France uses a progressive barème: taxable income is split into successive tranches (brackets), and each tranche is taxed at its own rate, from a 0% band at the bottom up to the top marginal rate. Only the income within a bracket is taxed at that bracket's rate, so a pay rise never lowers your take-home pay.
The exact thresholds and rates are set each year in the budget law and are revalued regularly, so always check the current barème rather than memorising figures. You can find the current brackets and an official simulator on impots.gouv.fr, with plain-language explanations on service-public.fr.
The barème applies per part
How does prélèvement à la source work?
Since January 2019, income tax is collected by prélèvement à la source (PAS), meaning it is withheld each month rather than paid a year in arrears. For employees and pensioners, your employer or pension fund applies a taux (rate) provided by the DGFiP and shows the deduction on your payslip.
The self-employed and people with property income instead pay monthly or quarterly acomptes (instalments) debited directly from their bank account. You can adjust your rate or instalments in your personal space on impots.gouv.fr when your income changes.
Do you still file a return?
Yes. Withholding at source does not replace the annual déclaration de revenus. Each spring, almost everyone, including employees, must file a return, normally online on impots.gouv.fr. The return reconciles what was withheld against what is actually owed.
The declaration is where you report household changes, claim deductions and tax credits, and declare income not covered by withholding. Depending on the result you may receive a refund or have a balance to pay later in the year. Deadlines vary by département and filing method, so check the current dates on service-public.fr.
How are residents taxed on worldwide income?
French tax residents are taxed on their worldwide income: foreign salary, foreign rent, and foreign investment income must all be declared in France. To prevent the same income being taxed twice, France has tax treaties (conventions fiscales) with many countries.
Treaties typically relieve double taxation either by exempting certain foreign income (while still counting it to set your rate) or by granting a tax credit for tax already paid abroad. Because each treaty differs, check the relevant convention and the guidance on impots.gouv.fr.
Sources: impots.gouv.fr (DGFiP) and service-public.fr, as of June 2026. The barème thresholds, rates, and deadlines change yearly, so verify current figures with the official sources before acting.
Frequently Asked Questions
Who has to pay income tax in France?
Anyone who is a résident fiscal in France pays French income tax on their worldwide income. You are generally a tax resident if your main home (foyer) is in France, you spend more than 183 days a year there, or your main professional or economic activity is in France. Non-residents are taxed only on French-source income.
How does prélèvement à la source work?
Since 2019, income tax is withheld at source (prélèvement à la source). For employees and pensioners, your employer or pension fund deducts tax each month based on a rate set by the DGFiP. The self-employed and those with property income pay monthly or quarterly acomptes (instalments) directly to the tax authority.
Do you still have to file a tax return in France?
Yes. Even with withholding at source, almost everyone must file an annual déclaration de revenus in the spring, usually online on impots.gouv.fr. The return reconciles what was withheld against what is actually owed, and it captures household changes, deductions, and credits. You may receive a refund or a balance to pay.
What is the foyer fiscal and the quotient familial?
France taxes the household (foyer fiscal), not the individual. The quotient familial divides taxable income by a number of parts based on household size: each adult counts as one part and children add further parts. Dividing income across more parts before applying the barème can lower the household's effective tax rate.
Are residents taxed on income earned abroad?
Yes. French tax residents are taxed on their worldwide income, including foreign salary, rent, and investment income. France has tax treaties with many countries to avoid double taxation, typically by exempting certain foreign income or granting a tax credit for tax already paid abroad.