France: Living There - Tax Issues
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Living There
French residents are taxed on their global income.
French residents are taxed on a household basis, at progressive rates. The mode of calculation is somewhat strange, and emphasizes the familial nature of French society. The households net taxable income is divided by the number of family members, calculated according to the so-called family coefficient rules (e.g., a two parent family with two dependent children would result in the gross family income being divided by 3. The figure arrived at is taxed at the scale rates. Then the resulting amount is re-multiplied by whatever number was arrived at.
The following income tax rates apply for calendar year 2006:
INCOME TAX |
|
| ANNUAL INCOME() | MARGINAL TAX RATE |
| Up to 5,614 | nil |
| 5,615 - 11,198 | 5.5% on band over 5,614 |
| 11,199 - 24,872 | 14% on band over 11,198 |
| 24,873 - 66,679 | 30% on band over 24,872 |
| Over 66,679 | 40% on all income over 66,679 |
Wealth Tax
Wealth tax is an annual tax that applies once French assets exceed 760,000.
WEALTH TAX |
|
| TAXABLE AMOUNT () | TAX RATE |
| Up to 760,000 | nil |
| 760,000 - 1,220,000 | 0.55% |
| 1,220,000 - 2,420,000 | 0.75% |
| 2,420,000 - 3,800,000 | 1.00% |
| 3,800,000 - 7,270,000 | 1.30% |
| 7,270,000 - 15,810,000 | 1.65% |
| Over 15,810,000 | 1.80% |
France - more data and information
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