Payroll taxes
in France.

Q: What are the rates of service tax in France?

Standard rate: 20% Reduced rate: 10% (unprocessed agricultural products, museums, housing improvement…) Reduced rate: 5% (most food products, gas, electricity, cinema…) Special rate: 1% (some medicines, television license fee…)

SALARY PAYMENT IN Euro (EUR, €)

CONTRACT LANGUAGES French / English

PAYROLL TAX 29.50% – 31.30%

PAYROLL CYCLE Monthly

TIME TO HIRE 12 hours

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France

What is the average employer tax rate in France?

From the start of the financial year 2022, the tax rate for all companies above a taxable income of 42,500 EUR will be 25%. A 3.3% social surcharge applies when tax liability exceeds €763,000.

France – 2023 CIT tax rates

Taxable income (KRW)	Tax rate
0 – 42,500	15%
42,500 +	25%

What is the average employee tax rate in France?

The standard income tax rate, calculated per household on annual income based on an employee’s last return, and its brackets are:

France – Individual Income Tax

Taxable Income (EUR)	Tax rate 2023
Up to €10,084	0%
€10,085 – €25,710	11%
€25,711 – €73,516	30%
€73,517 – €158,122	41%
More than €158,122	45%

Additionally, there is a surcharge on high incomes of 3%-4%.

Employer contributions in France

France’s mandatory national social insurance system covers health (maternity, disability and death), family allowances, retirement, housing benefits, and occupational accidents (including illness).

Social security contributions that are payable by the employer could vary depending on the type, size and location of the business, and generally amount to approximately 50% of gross pay.

France – Employer contributions

Contribution item	Contribution rate
Health, maternity, invalidity, death insurance	13%
Old age insurance	8.55%
Unemployment	4.05%
Family allowances	3.45% or 5.25%
Pension	1.9%
Autonomy Solidarity Contribution (CSA)	0.3%
AGS (Wage Guarentee Insurance)	0.15%
Social dialogue contribution	0.016%
Fnal	0.5% if more than 50 employees; 0.1% if less

Employee contributions in France

The employee must pay social security contributions and surcharges, which are deducted at source from their salary payments. Their contributions amount to approximately 20% of salary.

France – Employee contributions

Contribution item	Contribution rate
General pension	6,9%
Generalised Social Contribution (GSA)	9.2%
Social Debt Repayment Contribution (SDRC)	0.5%
Agency for Executive Employment (Apec)	0.024%

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Your business can easily hire employees in France without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.

FAQs

What is the tax bureau of France called?

The French tax administration is called the “Direction Générale des Finances Publiques”.

Is there an employer payroll tax contribution in France?

If employers are not subject to the value-added tax (VAT) or are subject to the VAT on less than 90% of total sales, they must remit payroll taxes on wages. Rates range from 4.25% to 20% based on each employee’s income, although employers don’t have to pay if the tax owed is less than €1,200 annually.

25% on individual salaries up to €7,705;
5% on the portion of the salary in €7,705 -€15,385 bracket;
6% in €15,385 – €151,965 bracket;
20% on the excess over €151,965.

How does the payroll tax system of France work?

Payroll in France is among the most complex in Europe, with employers responsible for reporting employee wages for income tax purposes, withholding employee social insurance contributions, paying additional social insurance contributions from their revenue as a percentage of employee income and following requirements of a payroll tax based on the country’s value-added tax and other possible taxes.

Employee payroll tax is made up of assigned taxes for the three branches of social security system and includes both basic and supplementary coverage. Since 2019, a Pay-As-You-Earn (PAYE) or ‘prélèvement à la source’ system has been implemented throughout France.

The annual income tax return is generally a family return (Quotient familial) according to the taxpayer’s family composition and marital status. Married couples are required to file jointly – exceptions are allowed in very limited circumstances. Adult children may be claimed as dependents if they are under 21 years of age or if they are students under the age of 25.

What are the rates of service tax in France?

Standard rate: 20%
Reduced rate: 10% (unprocessed agricultural products, museums, housing improvement…)
Reduced rate: 5% (most food products, gas, electricity, cinema…)
Special rate: 1% (some medicines, television license fee…)

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