French Tax Rates 2022

Income Tax Scale applicable to 2021 Income

Impôt sur le revenu (CGI 197 I-1)

Band of Income (€) Tax Rates (%)
Allowance to 10,225 0.00
10,225 to 26,070 11.00
26,070 to 74,545 30.00
75,545 to 160,336 41.00
In excess of 160,336 45.00

Pensions and salaried income receive an allowance of 10% up to a maximum of €3,912 for pensions and €12,829 for salaried income. There is an age allowance for those over 65 with an income lower than €25,040. The above is then divided into the number of “parts” of the household, further reducing your income tax liability.

2021 Property Wealth Tax Scale and Limit

Impôt sur la fortune Immobilière (CGI 977)

On value of buildings (and funds invested in such) on 1st January for those with assessable assets above €1,300,000. Payable in June

 Taxable Wealth (€)

 Tax Rates (%) 

Allowance 

to 

800,000 

0.00 

800,000 

to 

1,300,000 

0.50 

1,300,000 

to 

2,570,000 

0.70 

2,570,000 

to 

5,000,000 

1.00 

5,000,000 

to 

10,000,000 

1.25 

In excess of 

10,000,000 

1.50

There are allowable deductions for wealth tax, such as 30% of the value of your principal residence.

Capital Gains Tax

Impôt sur les plus-values

Capital Gains are on savings and investment income are generally assessed the same way as earned income.

This tax is not applicable to a French principal private residence. Tax on property is 19% and CSG at 17.2%.

Investment property can be sold free of Capital Gains Tax after 22 years (though remains assessable to CSG for up to 30 years). There is a further tax on property gains above €50,000 ranging from 2-6%.

Inheritance Tax Rates

Droits de succession

The rates & allowances shown are per beneficiary

Between Spouses & Partners in a PACS (CGI 777-TII)

Applied only to lifetime transfers (transfers on death, between spouses, are exempt) (CGI 790-E&F)

 Band of Value (€) 

Tax Rates (%)

Allowance 

80,724 

0.00%

The next 

8,072 

5.00 

8,072 

to 

15,932 

10.00 

15,932 

to 

31,865 

15.00 

31,865 

to 

552,324 

20.00 

552,324 

to 

902,838 

30.00 

902,838 

to 

1,805,677 

40.00 

In excess of 

1,805,677 

45.00 

Between Parents and Children (CGI 777-TI)

 Band of Value (€) 

Tax Rates (%) 

Allowance 

100,000 

0.00 

The next 

8,072 

5.00 

8,072 

to 

12,109 

10.00 

12,109 

to 

15,932 

15.00 

15,932 

to 

552,324 

20.00 

552,324 

to 

902,838 

30.00 

902,838 

to 

1,805,677 

40.00 

In excess of 

1,805,677 

45.00 

Between Grandparents & Grandchildren (€) (CGI 790-B)

The tax bands and rates are exactly the same as for those between parents and children, as detailed above.

The allowances, however, are significantly lower, as follows:

 Grandparent 

31,865 

Great-grandparent 

5,310 

Between siblings (€) (CGI 777-TIII)

 Allowance 

*15,932

0.00% 

The next 

24,430

35.00% 

Over 

24,430

45.00% 

* Where the siblings were living together 5 years before deathand the deceased was disabled, the tax free allowanceincreases.

Between other relatives (to 4th degree) (€) (CGI 779-V)

 Less than 

7,967 

0.00% 

Over 

7,967 

55.00% 

Between unrelated persons (€) (CGI 778-IV & 779-II)

 Less than 

1,594 

0.00% 

Over 

Handicapped person 

1,594 

159,325 

60.00% 

0% 

Inheritance tax allowances are reset every 15 years

 This information was current at of the end of December 2021 The information contained in this document is for information purposes only and should never be acted upon without professional advice. Kentingtons can accept no responsibility whatsoever for losses incurred by acting on the information contained within this document. 

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