Income tax on residents

In France, personal income tax is progressive, meaning the tax rate increases as your income rises.

Income Tax Rates in France

• 0% – Up to €11,294 of annual income is tax-free.
• 11% – Applies to income between €11,295 and €28,797.
• 30% – Applies to income between €28,798 and €82,341.
• 41% – Applies to income between €82,342 and €177,106.
• Surtax – There’s an additional surtax of 3% on income exceeding €250,000 for a single person and €500,000 for a married couple. This surtax increases to 4% for income exceeding €500,000 for a single person and €1 million for a married couple.

Deadlines for income tax returns

May 21st is the deadline for filing and paying income tax in France, whether online or using a paper form.

Non-taxable minimum in France

There’s a tax-free threshold (around €11,294 for 2024) but only for certain income types. This means if your total income falls below this threshold and comes solely from these specific tax-exempt sources, you wouldn’t pay income tax.

Deduction

In France, you can lower your income tax bill by:

• Deductions – Reduce taxable income with work expenses, charity donations, some home expenses, etc.
• Tax Credits – Directly reduce your tax owed with credits for childcare, energy-efficient renovations, and more (depending on eligibility).

Procedure for refunding overpayments

The tax authorities will process your return and determine your tax liability. If they find you overpaid, they will automatically issue a refund. The refund will be deposited directly to the bank account you provided during filing. Processing times can vary, but generally take several weeks.

Getting tax number in France

Acquiring a tax number in France, also known as a Numéro d’identification fiscal (NIF).

Here are the methods:

• Online – You can register on the French Tax Administration website.
• By Mail – Use form CERFA No. 1347-SD and send it by mail.

What you’ll need for registration:

• Proof of identity (passport, ID card)
• Proof of residency in France (if applicable)
• Documents related to your income source (e.g., rental contracts, business activity documentation)

Penalty

Late Filing – Missing the May 21st deadline (or your local department’s specific date) for filing your income tax return triggers penalties. These can be a percentage of the tax owed (typically starting around 10%) or a flat fee, depending on the severity of the delay. The longer the delay, the steeper the penalty.

Underpayment –  If you don’t pay the full amount of tax owed by the deadline, you’ll be subject to late payment interest. This interest accrues monthly and can add up quickly.