2026 France Tax Filing Season Guide

PFU (Prélèvement Forfaitaire Unique) is a flat 30% tax on investment income (12.8% income tax + 17.2% social contributions). Alternatively, you can opt for progressive income tax rates, which may be beneficial if your marginal tax rate is lower than 12.8%.

Since 2019, income tax is collected monthly through payroll deduction or quarterly for self-employed. The rate is based on your previous year's tax return. You still file an annual return to reconcile the actual tax owed versus amounts already collected.

You can choose to itemize actual professional expenses instead of the 10% standard deduction. This includes travel costs, professional training, work clothes, home office expenses, and professional meals. Itemizing is beneficial only if your actual expenses exceed 10% of your salary.

IFI applies to net real estate wealth exceeding €1.3 million. It includes all real estate properties (main residence, rental properties, etc.) minus related debts. Rates range from 0.5% to 1.5%. Your main residence benefits from a 30% valuation reduction.

If you're a French tax resident working remotely for a foreign company, you're generally subject to French income tax on worldwide income. You may benefit from double taxation treaties. Social contributions may apply depending on your employment status and the duration of your stay in France.