All About the Differential Tax on High Incomes (CDHR)
- Calculation of the tax
- Tax return filing
- Payment of the tax
Since the Finance Act for 2025, a differential tax on high incomes (CDHR) has been introduced to ensure a minimum level of taxation on the highest incomes.
Who is affected? How is it calculated? Here is an overview.
What is the CDHR?
The Differential Tax on High Incomes (CDHR), introduced by the 2025 Finance Act and maintained under the 2026 Finance Act, ensures a minimum tax rate of 20% on the highest incomes.
In practical terms, when the combined taxation consisting of income tax and the exceptional contribution on high incomes is lower than 20% of a household’s income, a differential tax is imposed to bring the overall tax burden up to that level.
This also depends on your taxable reference income (revenu fiscal de référence).
The differential tax applies to income earned in 2025 and 2026.
The Differential Tax on High Incomes (CDHR) is distinct from the Exceptional Contribution on High Incomes (CEHR).
The CDHR is levied in addition to both income tax and the exceptional contribution.
Its purpose is to ensure that the wealthiest taxpayers are taxed at a minimum rate of 20%.
The CEHR, on the other hand, imposes an additional tax of 3% to 4% on a portion of the taxable reference income.
Both taxes may be payable simultaneously.
Who is Subject to the CDHR?
To be subject to the CDHR, the following conditions must be met:
- you must be a tax resident of France;
- you must have a taxable reference income exceeding €250,000 if you are single, widowed, legally separated or divorced;
- you must have a taxable reference income exceeding €500,000 if you are married or in a civil partnership and taxed jointly;
- you must have an average tax rate below 20%.
How is the CDHR Calculated?
The contribution is equal to the difference between:
- 20% of the adjusted taxable reference income;
- and the sum of income tax and the CEHR.
The following additional amounts are also taken into account:
- €1,500 for each dependent;
- €12,500 for taxpayers filing jointly.
When Must the CDHR Be Paid?
The Differential Tax for 2025
The differential tax for 2025 required the payment of an advance installment in December 2025.
This advance amounted to 95% of the estimated tax due.
The amount will appear on the tax assessment notice you receive during the summer of 2026.
If the advance payment exceeds the final amount due, the excess will be refunded.
Conversely, if the advance payment is lower than the final tax liability, the remaining balance must be paid together with the outstanding income tax.
The Differential Tax for 2026
The differential tax for 2026 will also require a 95% advance payment.
This payment must be made between 1 and 15 December 2026.
During this period, you will be able to declare and pay your CDHR advance payment through your account under “FINANCES PUBLIQUES” on the website of the French tax authorities.
Med venlig hilsen / Kind regards
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
Camilla.nissen.michelis@brahin-avocats.com
www.brahin-avocats.com
