France

France uses a progressive household-based income tax system (impot sur le revenu) with the quotient familial mechanism. Income is divided by the number of parts in the household (1 for a single person, 2 for a couple, plus 0.5 per dependent child). Rates in 2025 are 0% up to EUR 11,497, 11%, 30%, 41%, and 45% on income above EUR 180,294 per part. Social contributions in France are among the highest in the developed world. Employee contributions total approximately 22% of gross salary, covering health insurance, retirement, unemployment, and supplementary pensions. Employer contributions add another 30-45% on top of gross salary. The CSG (Contribution Sociale Generalisee) of 9.2% and CRDS of 0.5% apply to most income types. France uses a PASS (Plafond Annuel de la Securite Sociale) of EUR 47,100 as a reference for social contribution calculations. Some contributions apply only up to 1x PASS, others up to 4x or 8x PASS. The complexity of the system means that effective employer costs are typically 1.4 to 1.5 times gross salary. Tax incentives include deductions for pension contributions, charitable giving, and home employment. The Madelin deduction allows self-employed individuals to deduct complementary insurance premiums. France has a wealth tax on real estate (IFI) for net real estate assets exceeding EUR 1.3 million. Capital gains on securities are taxed at a flat 30% (Prelevement Forfaitaire Unique or PFU), combining 12.8% income tax and 17.2% social contributions. Taxpayers can opt for progressive taxation if more favorable. The corporate tax rate is 25%. France has tax treaties with over 120 countries.