Taxable income (in Euro) : Tax rate (%)

Up to 4262 : 0
4262-8382 : 6.83
8382-14753 : 19.14
14753-23888 : 28.26
23888-38868 : 37.38
38868-47932 : 42.62
over 47932 : 48.09

The French government has been reducing income tax levels for a number of years and has put measures in place to reduce them still further. Personal income tax (impot sur le revenu des personnes physiques, or IRPP) in France is lower than the EU average and is especially favourable towards large families. The amount of tax due relates directly to the number of dependent children you have, and the following allowances reduce the amount of income that counts as taxable:

- Social security payments.
- A 10% allowance (deduction forfaitaire) for all salaried taxpayers, to cover 'professional' expenses, standard amount ranges from 376 to 12,648 Euro.
- A 20% general deduction (abattement general), again for salaried taxpayers only, which applies to salary and pension, to a maximum of 115,900 Euro.

There is no PAYE system in France whereby employees have tax deducted at source by their employer. Instead, responsibility for declaring and paying personal income tax lies with each individual. Most people pay their tax in 3 instalments every year in arrears.

The current administration in France has pledged to lower the rate of corporation tax by 10%, from 43.3% to 33.3%.

The French tax system is complicated, so it may well be worth hiring an accountant (expert comptable) to complete your tax return. Before moving to France, consult a tax professional familiar with tax issues in your home country and also in France, to ensure you gain maximum benefit from the differences.