TLDR: Income tax in France is calculated using a progressive scale divided into brackets with increasing rates (0%, 11%, 30%, 41%, 45%). The taxable income is divided by the number of family shares (quotient familial), then taxed according to the brackets. The 2025 bracket thresholds are updated with an inflation index (CPI) of 0.9% compared to 2024.
How the progressive scale works
The progressive scale applies to the global net taxable income. The rates for 2025 are structured into five brackets:
- 0% for the first bracket (minimum threshold)
- 11% for the second bracket
- 30% for the third
- 41% for the fourth
- 45% for the highest bracket
Each bracket applies only to the portion of income falling within it, ensuring equitable taxation based on ability to pay. The exact bracket thresholds are updated annually based on inflation: for 2025, the increase is 0.9% compared to the previous year, as set by the 2026 Finance Act.
The role of the quotient familial
The tax calculation considers the composition of the tax household (foyer fiscal) through the family quotient (quotient familial). This system divides the total taxable income by a number of shares (parts), determined based on family status:
- 1 share for a single, divorced, or separated person
- 2 shares for a couple (married, in a civil partnership, or cohabiting)
- An additional half-share for each dependent child (with limits for adult children)
The income is first divided by the total number of shares, then taxed by applying the progressive scale. The tax thus calculated is finally multiplied by the number of shares, resulting in the household’s gross tax (impôt brut). This mechanism reduces progressivity for families with dependent children or spouses.
Taxable income: what it includes
The global net taxable income to which the progressive scale applies includes:
- Employment income: salaries, pensions, allowances, life annuities (rente viagère).
- Capital income: rent, interest, dividends, capital gains from real estate or securities.
- Income from profitable activities: commercial, professional, or agricultural activities.
- Miscellaneous income: prizes, non-recurring allowances, occasional earnings.
From this total, legally provided deductions (e.g., self-employment expenses, social security contributions) are subtracted, resulting in the taxable base for applying the progressive scale.
Inflation adjustment of brackets
The thresholds for the progressive scale brackets are indexed annually based on the Consumer Price Index (CPI), excluding tobacco. For 2025 income (2026 tax return), the adjustment is 0.9%, as established by Article 4 of the 2026 Finance Act. This adjustment helps maintain taxpayers' purchasing power, preventing a tax increase due solely to inflation.
The update is not automatic every year: it depends on the provisions of the current Finance Act.