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From the start of the financial year 2022, the tax rate for all companies above a taxable income of 42,500 EUR will be 25%. A 3.3% social surcharge applies when tax liability exceeds €763,000.
| Taxable income (KRW) | Tax rate |
|---|---|
| 0 – 42,500 | 15% |
| 42,500 + | 25% |
The standard income tax rate, calculated per household on annual income based on an employee’s last return, and its brackets are:
| Taxable Income (EUR) | Tax rate 2023 |
|---|---|
| Up to €10,084 | 0% |
| €10,085 – €25,710 | 11% |
| €25,711 – €73,516 | 30% |
| €73,517 – €158,122 | 41% |
| More than €158,122 | 45% |
Additionally, there is a surcharge on high incomes of 3%-4%.
France’s mandatory national social insurance system covers health (maternity, disability and death), family allowances, retirement, housing benefits, and occupational accidents (including illness).
Social security contributions that are payable by the employer could vary depending on the type, size and location of the business, and generally amount to approximately 50% of gross pay.
| Contribution item | Contribution rate |
|---|---|
| Health, maternity, invalidity, death insurance | 13% |
| Old age insurance | 8.55% |
| Unemployment | 4.05% |
| Family allowances | 3.45% or 5.25% |
| Pension | 1.9% |
| Autonomy Solidarity Contribution (CSA) | 0.3% |
| AGS (Wage Guarentee Insurance) | 0.15% |
| Social dialogue contribution | 0.016% |
| Fnal | 0.5% if more than 50 employees; 0.1% if less |
The employee must pay social security contributions and surcharges, which are deducted at source from their salary payments. Their contributions amount to approximately 20% of salary.
| Contribution item | Contribution rate |
|---|---|
| General pension | 6,9% |
| Generalised Social Contribution (GSA) | 9.2% |
| Social Debt Repayment Contribution (SDRC) | 0.5% |
| Agency for Executive Employment (Apec) | 0.024% |
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Your business can easily hire employees in France without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.
The French tax administration is called the “Direction Générale des Finances Publiques”.
If employers are not subject to the value-added tax (VAT) or are subject to the VAT on less than 90% of total sales, they must remit payroll taxes on wages. Rates range from 4.25% to 20% based on each employee’s income, although employers don’t have to pay if the tax owed is less than €1,200 annually.
Payroll in France is among the most complex in Europe, with employers responsible for reporting employee wages for income tax purposes, withholding employee social insurance contributions, paying additional social insurance contributions from their revenue as a percentage of employee income and following requirements of a payroll tax based on the country’s value-added tax and other possible taxes.
Employee payroll tax is made up of assigned taxes for the three branches of social security system and includes both basic and supplementary coverage. Since 2019, a Pay-As-You-Earn (PAYE) or ‘prélèvement à la source’ system has been implemented throughout France.
The annual income tax return is generally a family return (Quotient familial) according to the taxpayer’s family composition and marital status. Married couples are required to file jointly – exceptions are allowed in very limited circumstances. Adult children may be claimed as dependents if they are under 21 years of age or if they are students under the age of 25.
France – 2023 CIT tax rates
