French Income Tax Explained: 2026 Brackets, Allowances & PAS
France taxes personal income (impôt sur le revenu, IR) on a five-bracket progressive scale applied per quotient familial share: 0% up to 11,600, 11% to 29,579, 30% to 84,577, 41% to 181,917, and 45% above (amounts in EUR), as set by Loi de finances 2026 (Loi n° 2026-103 of 19 February 2026). Tax is collected monthly at source via the Prélèvement à la Source (PAS) and reconciled annually against the true liability. Verify your personal situation with a qualified tax advisor.
The 2026 Progressive Tax Brackets
France's income tax is levied on a progressive scale: only the income falling within each bracket is taxed at that bracket's rate, not the total income at the highest rate reached. The 2026 brackets were indexed 0.9% higher than 2025 by the Loi de finances 2026 (Loi n° 2026-103 of 19 February 2026) and are verified from BOFIP (BOI-IR-LIQ-20-10, April 2026). Bracket 1: 0% on income up to 11,600 EUR. Bracket 2: 11% on 11,600 to 29,579 EUR. Bracket 3: 30% on 29,579 to 84,577 EUR. Bracket 4: 41% on 84,577 to 181,917 EUR. Bracket 5: 45% on income above 181,917 EUR. These thresholds apply per quotient familial share — households divide their combined income before applying the scale.
The 10% Professional Expense Allowance
Before applying the tax brackets, each household member's employment income is reduced by a flat 10% allowance for professional expenses (frais professionnels). For the 2025 income declared in spring 2026, this allowance is capped at 14,555 EUR per household member and floors at 509 EUR, as confirmed by service-public.gouv.fr (page F1989, April 2026). Employees with actual professional expenses exceeding the flat-rate figure may instead elect to deduct real costs (frais réels), backed by receipts. This election must be applied consistently across all members of the same tax household.
The Quotient Familial: How Family Situation Affects Tax
The quotient familial (QF) system divides total taxable income by a number of household shares before applying the progressive brackets. A single person holds 1 share; a married or PACSed couple holds 2 shares; each dependent child typically adds half a share (a full share from the third child onward). Tax is calculated on income per share and then multiplied by the total number of shares. The tax benefit of each additional half-share is capped. In 2026, the general cap is 1,807 EUR per additional half-share, set by Loi n° 2026-103. Special caps apply for single parents, widows, and other specific situations. The quotient familial is a core element of French tax policy and has no direct equivalent in most other countries.
Monthly Withholding: the PAS System
Since 2019, French income tax is collected monthly at source through the Prélèvement à la Source (PAS). Employers apply a rate communicated by the DGFiP (personalised rate) or, if none is available, the taux neutre from the published grid. Three neutral-rate tables exist: table a (standard), table b (one dependent child), and table c (two dependent children), all effective from 1 May 2026. The PAS rate applies to the monthly net taxable income, which is gross salary minus IR-deductible contributions (pension, AGIRC-ARRCO, and deductible CSG). Non-deductible CSG and CRDS do not reduce this base. The table a neutral-rate grid shows a 0% band up to 1,634 EUR monthly net taxable income, with rates rising progressively to 43% above 55,557 EUR.
Year-End Reconciliation and the Décote Relief
Each spring, the DGFiP calculates the definitive annual IR using the total income declared, the quotient familial, and any applicable tax reductions and credits. This is compared to the total PAS withheld during the year. Any overpayment is refunded; any shortfall is collected directly from the bank account. Households with a modest calculated tax liability may benefit from the décote, a statutory relief under CGI art. 197 I-4 that reduces or eliminates low amounts of income tax. The formula reduces the tax by 75% of the gap between the threshold and the calculated tax. The precise thresholds for 2026 are pending official confirmation in BOFIP; consult a tax advisor if your estimated tax is close to nil.
FAQ
What are the French income tax brackets for 2026?
The 2026 brackets per quotient familial share are: 0% on income up to 11,600 EUR; 11% on 11,600 to 29,579 EUR; 30% on 29,579 to 84,577 EUR; 41% on 84,577 to 181,917 EUR; and 45% on income above 181,917 EUR. These thresholds were indexed 0.9% above 2025 figures by the Loi de finances 2026 (Loi n° 2026-103 of 19 February 2026).
Is the monthly PAS withholding my final tax?
No. PAS is an advance payment toward the annual income tax. The DGFiP calculates the definitive tax liability at year-end through the annual return, accounting for the full-year income, the quotient familial, all applicable tax credits, and the décote for lower-income households. Any surplus is refunded; any shortfall is collected automatically.
How does the quotient familial reduce income tax?
By dividing taxable income by the household share count before applying the progressive brackets, each share falls into lower brackets. A couple with two children (3 shares) divides combined income by three before the bracket calculation, then multiplies the per-share tax by three. The tax benefit per additional half-share is capped at 1,807 EUR in 2026.
What is the décote and who benefits?
The décote (CGI art. 197 I-4) is a statutory mechanism that reduces the income tax owed by households whose calculated tax falls below a threshold. The formula reduces the tax by 75% of the gap between that threshold and the calculated amount, potentially eliminating the liability entirely. The 2026 thresholds are pending official publication; consult a tax advisor if your estimated liability is small.
⚠️ Informational estimate, not tax advice. Payroll software may differ in edge cases. Verify with a professional.