1. Social Contributions
In France, employees pay significant social contributions that fund the social protection system.
Non-Executive
- * Total rate: ~22%
- * Health insurance, retirement
- * Unemployment, CSG/CRDS
Executive
- * Total rate: ~25%
- * Higher supplementary retirement
- * Better retirement coverage
These contributions fund health insurance, retirement pensions, unemployment benefits, and family allowances.
2. Income Tax (IR)
French income tax is progressive and calculated after a 10% deduction for professional expenses.
| Annual Income Bracket (per share) | Rate |
|---|---|
| 0 - 11,294 EUR | 0% |
| 11,295 - 28,797 EUR | 11% |
| 28,798 - 82,341 EUR | 30% |
| 82,342 - 177,106 EUR | 41% |
| Over 177,106 EUR | 45% |
2025 brackets - Source: French Tax Authority (impots.gouv.fr)
3. Family Quotient
The family quotient is a unique French mechanism that divides taxable income by the number of household shares.
- Single person: 1 share
- Married/Civil partnership: 2 shares
- 1st and 2nd child: +0.5 share each
- 3rd child and beyond: +1 share each
Important
This system significantly benefits families with children by reducing their effective tax rate.
4. Deductions and Allowances
France offers a standard 10% deduction for professional expenses, automatically applied to taxable income.
10% Standard Deduction
Automatically applied to salary income for professional expenses (transport, meals, etc.)
Actual Expenses Option
You can opt for actual expenses if they exceed 10% (requires justification)
5. Complete Calculation Example
Let's take the example of a married non-executive with 2 children, earning 50,000 EUR/year.
| Annual Gross Salary | 50,000 EUR |
| Social contributions (~22%) | - 11,000 EUR |
| Net before tax | 39,000 EUR |
| 10% deduction | - 3,900 EUR |
| Taxable income | 35,100 EUR |
| Family quotient (3 shares) | 11,700 EUR/share |
| Income Tax | - 133 EUR |
| Net Annual Salary | 38,867 EUR |