Following multiple inquiries from property investors, we have updated our guide to French income tax for those investing in France or earning income from the country (it shows the 2024 rates).
Overview
The total net income is subject to progressive tax bands, similar to the PAYE system in the UK. If you are not a French resident, taxation applies only to income earned in France.
How French Income Tax is Calculated
The total net income is divided by the number of family tax quotas (1 for a single person, 2 for a married couple, etc.).
A different rate is applied to each portion of income within the tax brackets.
The total calculated amount is then multiplied by the number of tax quotas.
French Income Tax Rates for 2024 (applicable to 2023 income)
Up to €11,294: 0%
From €11,295 to €28,797: 11%
From €28,798 to €82,341: 30%
From €82,342 to €177,106: 41%
Beyond €177,106: 45%
Tax Reductions & Special Provisions
The Finance Act of 2024 aims to support low-income households. If your tax liability is below a certain threshold, you may be eligible for a rebate:
A discount applies when income tax is less than €1,400 for a single person or €2,300 for a married couple.
The discount is calculated as the difference between these thresholds and the actual income tax owed.
Example Calculations
Example 1: Married Couple with €100,000 Net Income
A married couple without children (2 tax shares) earns a total net income of €100,000, meaning each partner’s taxable income is €50,000.
Each individual’s income is taxed according to the progressive tax bands.
Since their individual incomes fall below €82,341, they will only be taxed at a maximum rate of 30%.
By contrast, a single individual earning €100,000 would be taxed at 41% on the portion exceeding €82,341.
Example 2: Single Person with €40,000 Net Income
A single taxpayer earning €40,000 would pay:
0% on the first €11,294
11% on €17,503 (€28,797 – €11,294) = €1,925
30% on €11,203 (€40,000 – €28,797) = €3,361
Total tax payable: €5,286
Example 3: Foreign Property Investor
Mr. Smith (a UK resident) owns a French rental property generating €12,000 in annual income. He has an interest-only mortgage costing €3,500 per year.
His taxable income after deductions is €8,500 (€12,000 – €3,500).
Since this falls below the €11,294 threshold, he pays no income tax on his rental income in France.
Additional Considerations
Foreign investors earning rental income in France may also be subject to social contributions (prélèvements sociaux) at a rate of 17.2%, though exemptions or reductions may apply depending on tax residency status and agreements between France and other countries.