Understanding how the French income tax works is essential for anyone living or planning to move there. In 2025, France has adjusted its income tax thresholds, meaning some taxpayers may see a reduction in their tax bills. Although the tax rates themselves remain unchanged, the increased income bands can have a positive impact on many households.
Let’s break down everything you need to know about French income tax in 2025, including the new tax bands, how the tax is calculated, and key dates to be aware of. Whether you’re an expat settling into French life or a long-time resident, this guide will help you better understand how your income will be taxed.
Table of contents
What is French income tax?
French income tax is a progressive tax levied on your net taxable income. This means the more you earn, the higher the percentage of your income that will be taxed. However, your entire income isn’t taxed at the same rate. Instead, it is divided into segments, called tranches with each taxed at a different rate.
Income tax in France is calculated using a family quotient system, meaning that the number of people in your tax household (foyer fiscal) affects the amount of tax due. The more dependents you have, the lower your taxable income per “share”, reducing your overall tax liability.
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2025 income tax brackets and rates
The income tax brackets for 2025 are as follows:
- Up to 11,497 €: 0% tax rate
- 11,498 € to 29,315 €: 11% tax rate
- 29,316 € to 83,823 €: 30% tax rate
- 83,824 € to 189,294 €: 41% tax rate
- More than 189,294 €: 45% tax rate
While these rates remain unchanged from previous years, the expansion of the tax bands means a smaller portion of income falls into the higher tax brackets, ultimately reducing the total tax bill for many taxpayers.
Example: Calculating French income tax in 2025
Let’s consider an example: A single individual with an annual net taxable income of 30,000 € would calculate their tax as follows:
- Up to 11,497 €: 0% tax = 0 €
- 11,498 € to 29,315 €: 11% tax = 1,959.98 €
- 29,316 € to 30,000 €: 30% tax = 205.50 €
Total tax = 2,165.48 €, or roughly 7.22% of their net taxable income.
This type of tax calculation only applies to one share (quotient familial). If you have dependents, the number of shares increases, which can significantly reduce the tax owed.
Understanding the family quotient system
The family quotient system is a unique aspect of French income tax. Your household’s taxable income is divided by the number of shares attributed to the household members:
- A single person: 1 share
- A couple (married or PACSed): 2 shares
- First two children: 0.5 share each
- Third child and beyond: 1 share each
After determining the tax for one share, the result is multiplied by the number of shares to calculate your total tax due.
Note: There is a ceiling to how much tax relief the family quotient can provide, particularly for high earners.
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Marginal vs Average tax rate
- Marginal Tax Rate (TMI): This is the tax rate applied to the highest portion of your income. It shows the rate at which your last euro is taxed.
- Average Tax Rate: This is the percentage of your total income that is paid in tax. It helps you understand your overall tax burden.
In the example above, although the taxpayer reaches the 30% marginal tax rate, their average rate is only 7.22%, highlighting how progressive taxation works.
Important tax deadlines in 2025
- The 2025 French income tax return season opens in April 2025, covering income earned in 2024.
- Filing deadlines vary depending on the department (postal code) where you live, usually ranging from late May to early June.
- Returns must be filed online unless you qualify for a paper return.
Always check the official tax website or consult a tax advisor to confirm specific deadlines applicable to your situation.
Tax residency and worldwide income
If you are a tax resident in France, you are required to report and pay tax on worldwide income. This includes pensions, rental income, and investments earned abroad.
Expats should be aware that:
- Double taxation treaties, such as the US-France Tax Treaty, often help avoid paying tax twice on the same income.
- Declaring foreign bank accounts and life insurance policies is mandatory.
> You might be interested in this article: Avoiding double taxation: A guide to the France-US tax treaty for American expats
Income sources subject to tax
Common income types subject to French income tax include:
- Employment income
- Self-employment income
- Rental income (from French and foreign property)
- Dividends and investment returns
- Pensions (public and private)
Different rules and deductions may apply based on the income type.
Reductions and allowances
Taxpayers may be eligible for deductions or allowances, including:
- Childcare expenses
- Alimony payments
- Charitable donations
- Certain energy-efficiency home improvements
In addition, a 10% standard deduction is automatically applied to employment income to account for job-related expenses.
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Tips for expats filing income tax in France
- Keep all documentation: Including pay slips, rental contracts, bank statements, and investment income.
- Use a tax advisor: Especially helpful if you have foreign income or complex financial circumstances.
- Declare everything: Failure to declare income, assets, or bank accounts abroad can lead to severe penalties.
- Check your local tax office (centre des impôts): They can offer guidance specific to your department.
Final notes
The revised tax bands for 2025 offer some relief for many taxpayers, even though the rates remain the same. By shifting the brackets upward, a larger portion of income is taxed at lower rates. This is welcome news, especially for middle-income earners and families.
For expats, understanding the French income tax system—especially how the family quotient and marginal rates work—is crucial to managing finances efficiently. Be sure to prepare well ahead of the filing deadline in April 2025 and consider professional advice if your income includes foreign earnings.
Whether you’re working in France, retired, or planning your move, staying informed on income tax changes will help you avoid surprises and optimise your financial life in France.
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