Since 1 September 2025, the individualised rate has become the standard for married couples and registered partners who are taxed jointly.
Details can be found in the article.
What income is subject to withholding tax?
Withholding tax (PAS) applies to almost all income subject to income tax, but with two different collection methods.
Income with direct collection by a third party
Collected directly by the paying institution (employer, pension fund, France Travail, etc.):
– Salaries and wages
– old-age pensions,
– life-long pensions without consideration (e.g. pension paid by a parent to a child),
– replacement income (unemployment benefits, sickness benefits, etc.).
Example
If you receive €2,000 net taxable income per month from your employer, they will deduct the tax directly from your payslip.
Income with advance payments collected by the tax authorities
For certain types of income, there is no intermediary to collect the tax. In this case, the tax authorities collect a monthly or quarterly advance payment from your bank account for the following types of income:
Income from the sale of shares, bonds, etc.
- income from self-employment (liberal professions, traders, craftsmen, farmers, etc.),
- income from real estate (rent received),
- annuities in return for payment,
- certain types of maintenance payments,
- certain specific types of income for managers (see Article 62 of the General Tax Code).
Special cases
- Income from foreign sources that is taxable in France.
- Certain salary income paid by an employer in the European Union or in a country that has signed a tax treaty with France.
How is my tax rate determined?
The tax rate is calculated each year in September based on your tax return from the spring. It takes into account your income and household composition, but not tax deductions/tax credits.
Example
Rokhaya declares a salary of €36,000 in May 2025. In September, the tax authorities apply a personal rate of 7.5% to her. From October onwards, this rate is automatically passed on to her employer.
How is the amount charged each month calculated?
The amount collected corresponds to the taxable income for the month multiplied by the rate applicable to your situation:
How is the amount deducted from my salary calculated?
- for an employee: taxable net income = total net income – special deductions (more information),
- for a self-employed person or landlord: the advance payment is calculated on the basis of the estimated taxable income for the current year and is automatically adjusted if your income changes.
Example
Employee: Julie receives €2,500 in taxable net income per month, and her personal rate is 7.5%. Monthly amount collected = €2,500 × 7.5% = €187.50.
Self-employed: Marc, a craftsman, expects an annual income of €36,000. The tax authorities collect a monthly advance payment of €225 (7.5%), which is automatically adjusted if his income changes.
Good to know
PAS is automatically adjusted to changes in income, but tax deductions and reductions are adjusted the following year.
Can I adjust my rate if my situation changes (income, marital status)?
Yes You can apply for an upward or downward adjustment if your income changes or if your family situation changes (marriage, birth, divorce, etc.). The application is submitted in your personal area and takes effect within a few months.
Example
Jean loses his job in March. His income is cut in half. He reports this change and gets a new reduced rate in May, which lowers his contributions starting in June.
Is the contribution automatic if I don’t change anything?
Yes. If you don’t take any action, the rate calculated in September will apply by default. However, you can choose not to disclose your personal rate to your employer.
In this case, the employer applies a neutral rate calculated solely on the basis of your income and without taking your family situation into account.
What happens if I am in a relationship (married or registered partner)?
Since 1 September 2025, the individual rate has become the standard for married couples or couples in registered partnerships who are taxed jointly.
Each spouse has their own rate, calculated on the basis of their respective income, but the total tax burden for the household remains unchanged.
Example
Julia and Albert, a childless couple, earn €1,600 and €3,500 per month respectively. This gives a taxable net income for the household after a 10% deduction of €55,080 per year and a tax bill of €3,574.
Currently, the household rate of 5.8% applies to both Julia’s and Albert’s income. On their payslips, Julia will have a monthly withholding tax of €93 and Albert €203.
With the individualised rate, which takes into account each person’s income, the rate applied to Julia’s payslip will be 0.4%, corresponding to €6 in withholding tax per month, and 8.3% for Albert, corresponding to €290 in monthly tax, for an unchanged total tax amount (€296 collected each month for the two members of the tax household).
Cabinet Nicolas BRAHIN
Advokatfirma i NICE, Lawyers in NICE
Camilla Nissen MICHELIS
Assistante – Traductrice
1, Rue Louis Gassin – 06300 NICE (FRANCE)
Tel : +33 493 830 876 / Fax : +33 493 181 437
