Many French people fear the process of completing and validating their income tax return, but for a significant number of taxpayers, the exercise has no impact on their budget. According to figures from the Directorate General of Public Finances, less than half of French people actually pay income tax, with only 44.7% of tax households being subject to this obligation in 2023. This represents a decrease of 0.8 points from the previous year, with only 18.2 million out of 40.7 million tax households being taxed in this way. This is a stark contrast to the 60-65% ratio seen between 1975 and 1985.
Despite less than half of French people being involved in this specific obligation, there are other forms of mandatory deductions in France as well. Agnès Verdier-Molinié, director of the Ifrap foundation, highlights that there is also the generalized social contribution (CSG), which is essentially an income tax although it is often perceived as a social security contribution by citizens.
In addition to income taxes and social contributions, French citizens also have to pay various other taxes such as property taxes and inheritance taxes depending on their individual circumstances. The complexity and uncertainty surrounding these various forms of taxes can make them difficult for some individuals to navigate and understand fully. However, it’s important for French citizens to stay informed about their financial obligations and seek professional advice if needed to avoid penalties or missed opportunities for savings.
