Moving to France for work can be an exciting opportunity, but it also brings new responsibilities, especially when it comes to taxes.
This guide explains the basics of tax residency, household taxation, progressive tax brackets, and the new reforms that may affect expat income tax in France. With clear examples, we’ll break down how much you might pay and what special rules apply if you’re earning a higher income.
Who is an expat (expatriate)?
An expat (short for expatriate) is someone who lives and works outside their home country, usually for work, study, or personal reasons. They are not necessarily citizens of the country they are living in.
How France Determines Tax Residency
Understanding whether you’re considered a tax resident in France is crucial, as it dictates your tax obligations. French tax residency isn’t solely based on the number of days spent in the country; several factors are considered:
- 183-Day Rule: Spending more than 183 days in France during a calendar year typically classifies you as a tax resident. Sometimes even if your stay is less than 183 days, the French tax authorities may still consider you a tax resident if your time in France exceeds your time spent abroad.
- Home in France: Owning or renting a home in France indicates tax residency. If you do not have a home, your main place of stay is used, and staying over 183 days generally qualifies.
- Professional activity in France: Performing work or running a business in France (full-time or primary activity) establishes residency, even if employment is part-time or incidental.
- Center of economic interests: This includes your primary investments, business headquarters, main professional activities, or the location from which most of your income originates.
Meeting just one of these criteria is enough for the French tax authorities to classify you as a tax resident.
Income Tax Rates in France
The tax system is progressive, meaning the rate increases as your income rises. For the 2025 tax year, the income tax brackets are as follows:
Income (€) |
Tax Rate |
|---|---|
Up to 11,497
|
0%
|
11,498 – 29,315
|
11%
|
29,316 – 83,823
|
30%
|
83,824 – 180,294
|
41%
|
Over 180,2934
|
45%
|
How Income Tax Is Calculated in France
In France, income tax is determined based on the combined income of the household, rather than on an individual basis. This includes income from multiple sources such as wages, salaries, allowances, pensions, and property income.
To account for household size, France uses a “family quotient” system:
- Each adult counts as one unit.
- Each of the first two children counts as half a unit.
- Each additional child counts as one full unit.
The total household income is divided by the number of units, and the tax rate is then calculated according to this adjusted amount. This system ensures that larger households benefit from a lower effective tax rate relative to their combined income.
Example for single person households
For a single individual earning €30,000 per year, the income tax would be calculated using France’s progressive tax rates as follows:
- First €11,497 → taxed at 0% → €0
- For income from €11,498 to €28,315 taxed at 11% → (28,315 – 11,497) * 0.11 = €1,849.98
- For income from €28,316 to €30,000 taxed at 30% → (30,000 – 28,316)*0.3 = €505.2
Total income tax: €2,355.18 which represents approximately 7.85% of total income.
Example for a family of three
If a family has two adults and one child, the family quotient is 2.5, 1 for each adult and 0.5 for the child. Assume the household earns €60,000 per year the income on which tax is payable is €24,000 (60,000/2.5).
Now the tax will be calculated as follows:
- First €11,497 → taxed at 0% → €0
- For income from €11,498 to €28,315 taxed at 11% → (24,000 – 11,498) * 0.11 = €1,375.22
- Multiply by the number of units 1,375.22 × 2.5 = €3,438.05 total tax
Effective tax rate for the household: €3,493.88 ÷ €60,000 ≈ 5.73%
Additional Tax for high income earners
In response to growing concerns over income inequality, the French government proposed the Contribution Différentielle sur les Hauts Revenus (CDHR) in the 2025 Finance Bill. This measure ensures that high-income households contribute a minimum effective tax rate of 20% on their reference tax income.
The CDHR applies to tax residents of France whose adjusted reference tax income exceeds €250,000 for single taxpayers and €500,000 for couples filing jointly.
These thresholds pertain to the household’s total income, including wages, investment returns, and other taxable earnings.
Calculation of Tax for High Earning Individuals
CDHR = (20% of adjusted reference tax income(RFR)) – (total income tax + exceptional contributions (CEHR) + withholding taxes)
French Expat Incentives: Impatriate Regime
France offers an Impatriate Regime to attract skilled foreign workers. If you qualify, this regime provides:
- Partial Exemption: A portion of your foreign-source income may be exempt from French taxation for up to 8 years.
- Eligibility: To benefit, you must have been a tax resident outside France for at least five years before starting your employment in France. Your employment must be with a French company that recruits you from abroad.
However, it’s important to note that social security contributions still apply under this regime, and the exemptions pertain only to income tax, not to all forms of taxation.
Double Taxation Agreements (DTAs)
France has signed Double Taxation Agreements (DTAs) with Singapore, Australia, and New Zealand to prevent individuals from being taxed twice on the same income. These agreements typically allocate taxing rights between the countries and provide mechanisms for relief from double taxation, such as:
- Tax Credits: Allowing you to offset taxes paid in one country against your tax liability in the other.
- Exemptions: Certain types of income may be exempt from tax in one of the countries.
It’s essential to consult the specific DTA between France and your home country to understand the exact provisions.
For Singaporean, Australian, and New Zealand citizens working in France, tax residency is the deciding factor in whether you pay taxes locally. Once considered a French tax resident, you’ll be subject to progressive income tax rates, household-based calculations, and in some cases, additional rules such as the 20% minimum tax (CDHR) for top earners.
Staying informed not only helps you avoid surprises but also ensures you make the most of available deductions, exemptions, and planning opportunities while living and working in France.