France
Top Income Tax
45%
Marginal rate
Corporate Tax
25%
Standard rate
VAT / Sales Tax
20%
Standard rate
Capital Gains
30%
Standard rate
Overview
France has a high-tax environment with excellent public services and social protections. The family quotient system can significantly reduce taxes for families. Paris remains a global business center with strong government support for startups through the La French Tech initiative.
Income Tax Brackets
| Income Range (EUR) | Tax Rate |
|---|---|
| 0 - 11,294 | 0% |
| 11,294 - 28,797 | 11% |
| 28,797 - 82,341 | 30% |
| 82,341 - 177,106 | 41% |
| 177,106+ | 45% |
Family quotient system divides income by household shares. Plus 3% contribution on high incomes.
Corporate Tax
Standard Rate
25%
25% standard rate. Reduced 15% rate on first 42,500 EUR for qualifying SMEs.
VAT / Sales Tax
Standard Rate
20%
Reduced Rates
5.5%, 10%
5.5% on food, books, energy. 10% on restaurants, transport, renovations.
Capital Gains Tax
Standard Rate
30%
Flat tax (PFU) of 30% on investment income (12.8% income tax + 17.2% social contributions). Can opt for progressive.
Social Security Contributions
Employee
22%
Employer
45%
Self-Employed
45%
Very high employer contributions. Includes health, pension, unemployment, family.
Special Tax Regimes
Impatriate Regime
30-50% of compensation can be exempt from income tax for employees transferred to France.
Eligibility: Must be assigned from abroad or directly recruited from outside France. Valid for up to 8 years.
Pros & Cons
Pros
- Family quotient reduces taxes for families
- Flat tax option on investment income
- Excellent healthcare and social services
- Strong R&D tax credits
Cons
- Very high employer social contributions (45%)
- Complex tax system
- No digital nomad visa
- High cost of living in Paris
Living Indicators
Cost of Living Index
Above average
Quality of Life Index
Good
Best For
Data Sources
Tax rate data for France is compiled from the following authoritative sources:
- OECD Tax Database
- Tax Foundation International Tax Competitiveness Index
- World Bank Business Enabling Environment
- France government tax authority publications
- PwC Worldwide Tax Summaries
Last verified: 2024-01
Disclaimer: This content is for informational purposes only and does not constitute tax advice. Tax laws change frequently. Always consult a qualified tax professional before making decisions about your tax residency or obligations.