Income tax (rates / brackets)

France's income tax system uses progressive tax brackets that apply to individual residents and certain non-residents earning French-source income. The current rates range from 0% on the lowest income band to 45% on income exceeding €250,000 annually, with intermediate brackets at 11%, 30%, 41%, and 45%. These rates apply to worldwide income for French tax residents and to French-source income for non-residents.

The French income tax framework is governed by the French Tax Code (Code Général des Impôts), administered by the Direction Générale des Finances Publiques (DGFP). The system applies to salaries, self-employment income, investment returns, and other sources of personal income.

France implemented significant tax reform effective January 1, 2024, introducing changes to the tax bracket thresholds and rates to account for inflation and economic conditions. The 45% top marginal rate applies to income above €250,000, representing the highest earner category. Additionally, France operates a tax credit system (crédit d'impôt) that can offset certain expenses and social contributions, effectively reducing the tax burden for eligible taxpayers.

Employers and payroll teams must withhold income tax from employee salaries according to these brackets and remit payments to tax authorities monthly or quarterly, depending on company size and turnover. Accurate calculation of taxable income requires understanding deductible expenses, social security contributions, and applicable tax credits. Annual tax returns (déclaration des revenus) must be filed by residents, typically by June of the following year. Non-residents earning French income face similar withholding obligations on their French-source earnings.