France Income Tax Calculator

What is French Income Tax?

French Income Tax (Impôt sur le revenu) is a progressive tax system imposed by the French government on the annual earnings of individuals residing in France. It's characterized by its unique calculation method using "parts" based on family situation, and a series of tax brackets with increasing rates.

The French Income Tax Formula

The general formula for calculating French income tax is:

\[Tax = Parts \times \sum_{i=1}^{n} (Income_{i} \times Rate_{i})\]

Where:

• \(Income_{i}\) = Taxable income in bracket i
• \(Rate_{i}\) = Tax rate for bracket i
• n = Number of applicable tax brackets
• Parts = Number of parts based on marital status and dependents

Step-by-Step Tax Calculation

1. Determine the number of parts based on marital status and dependents.
2. Divide the total income by the number of parts to get the taxable income per part.
3. Apply the progressive tax rates to the taxable income per part: \[Tax_{per part} = \sum_{i=1}^{n} (Income_{i} - Lower threshold_{i}) \times Rate_{i}\]
4. Multiply the tax per part by the number of parts to get the total tax.
5. Calculate the effective tax rate: \[Effective Rate = \frac{Total Tax}{Total Income} \times 100\%\]

Example Calculation

Let's calculate the French income tax for a single person with no dependents and an annual income of €50,000:

1. Number of parts = 1
2. Taxable income per part = €50,000
3. Tax calculation:
   • €0 - €10,225: \(10,225 \times 0\% = €0\)
   • €10,226 - €26,070: \((26,070 - 10,225) \times 11\% = €1,742.95\)
   • €26,071 - €50,000: \((50,000 - 26,070) \times 30\% = €7,179\)
4. Total tax: \(1 \times (€0 + €1,742.95 + €7,179) = €8,921.95\)
5. Effective Tax Rate: \(\frac{8,921.95}{50,000} \times 100\% = 17.84\%\)

Visual Representation

The blue portion of the bar represents the effective tax rate (17.84%) for the given income.