Taxes in France fall into two main categories: direct taxes (paid directly to the government) and indirect taxes (included in the price of goods and services).

Direct Taxes for Individuals

Income Tax:

• Applies to all tax residents with earned income
• Deducted at source since 2019
• Progressive rates from 0% to 45%
• Minimum taxable income: €10,085 (as of 2020)
• Average tax amount: €4,529

Real Estate Wealth Tax (IFI):

• Applies to households with real estate assets over €1.3 million
• Progressive rates from 0.5% to 1.5%
• Some assets may qualify for exemptions

Property Tax:

• Paid by property owners only
• Covers both built and unbuilt properties
• Rate based on cadastral value
• Varies by municipality
• Includes household waste collection tax

Residence Tax:

• Paid by property occupants as of January 1st
• Applies to primary and secondary residences
• Being phased out by 2023 for primary residences
• Includes TV license tax

Direct Taxes for Businesses

Income Tax:

• Applies to micro-enterprises, EIRLs, SNCs, SCPs, and EURLs
• Optional for SARLs, SAs, and SAS

Corporate Income Tax:

• Mandatory for SARLs, SAs, and SAS
• Optional for EIRLs, SNCs, SCPs, and EURLs
• 2021 rates: 26.5% (turnover €7.63M-€250M), 27.5% (turnover >€250M)
• 2022 rate: 25% for all brackets
• Reduced rate of 15% for SMEs with turnover <€10M

Indirect Taxes

VAT Rates:

• 20% standard rate (most products and services)
• 10% intermediate rate (restaurants, transport)
• 5.5% reduced rate (basic necessities)
• 2.1% super-reduced rate (press, certain medicines)

Other Indirect Taxes:

• Energy consumption tax (TICPE)
• Registration fees
• Stamp duty
• Customs duty

French Tax Calendar

• Q2: Online income tax returns due (May/June)
• Q3: Income tax notices issued (July/August); Property wealth tax due (September)
• Q4: Property tax due (October); Residence tax due (November)

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