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 €360,000 annually, with intermediate brackets at 11%, 30%, 41%, and 45%. These brackets are indexed annually for inflation.

Income tax in France is governed by the French Tax Code (Code Général des Impôts), administered by the Direction Générale des Finances Publiques (DGFIP). The system applies to worldwide income for French tax residents, defined as individuals whose primary residence, centre of economic interests, or habitual abode is in France.

The most recent significant reform occurred in 2022, when France introduced changes to the tax treatment of capital gains and dividend income, aligning certain provisions with European directives. The standard brackets themselves are adjusted each January to account for inflation, with the 2024 brackets reflecting cumulative indexation since the previous reform period.

Employers and payroll teams must calculate withholding tax on employee salaries using current-year brackets and apply the appropriate deductions for social contributions, which are separate from income tax. Monthly or quarterly tax payments are typically required depending on the employer's turnover. Employees receive annual tax statements (avis d'imposition) from DGFIP, which reconcile withheld amounts against final tax liability. Non-residents earning French employment income must also comply with withholding obligations, though different rules may apply depending on tax treaty provisions. Accurate bracket application and timely remittance to DGFIP are essential to avoid penalties.