How your French income tax is calculated

French tax Residents : how your french income tax is calculated ? 

Whether residing in France or not, if you receive income from a French source, such as rent, for example, you must declare this income and file a tax return in France. There is no reporting threshold, any income must be reported even if it is not taxable.

To determine your tax liability, the French tax authorities will first determine your total income, called your total “gross income”. Adjustments will then be made, to obtain your net taxable income. Your tax liability will be calculated gradually, depending on the composition of your household and the level of your income. The Income tax in France is calculated at the level of the “tax household”.

The household is composed of all the individuals collectively joined and constitute a single tax payer. Note that a single person may constitute a tax household. The tax is levied by the French government and concerns all income received by the member or members of the tax household (salary, property income, etc.).To be liable for income tax, you must be domiciled in France for tax purposes. Persons domiciled abroad for tax purposes may be liable to income tax in France when they receive income from French sources.

the Income-tax is progressive in France, the higher the income, the higher the rate. This tax is calculated on the basis of a scale updated annually. The scale consists of 5 brackets.The following table shows the rates for 2023 :