France Tax Changes 2027: Income Tax Scale, Sick Pay and Severance
The 2027 budget bill indexes the income tax scale by 2.1% and tightens the tax treatment of severance and sick pay. Every 2027 figure below is a draft until Parliament votes the budget.
Main change
PLF 2027, draft: applies to 2026 income
France 2026 vs 2027: key parameters
| Parameter | 2026 | 2027 | Status |
|---|---|---|---|
| 0% band | up to €11,600 | up to €11,844 | Draft |
| 11% band | €11,600–29,579 | €11,844–30,200 | Draft |
| 30% band | €29,579–84,577 | €30,200–86,353 | Draft |
| 41% band | €84,577–181,917 | €86,353–185,737 | Draft |
| 45% band | above €181,917 | above €185,737 | Draft |
| Décote, single / couple | €897 / €1,483 | €915 / €1,513 | Draft |
| Quotient familial cap per half-share | €1,807 | €1,845 | Draft |
| Severance pay exempt from income tax | several limits | capped at 1 PASS (€48,060 in 2026) | Draft |
| CSG on sick-pay allowances | 6.2% | 9.2% | Draft |
| 10% abatement on pensions | €4,439 cap per household | €3,000 sub-cap on retirement pensions | Draft |
| PASS (social security ceiling) | €48,060 | not yet published | Pending: arrêté in December |
| Impatriés regime | up to 8 years | no change | Not amended |
| Micro-entrepreneur ceilings | fixed for 2026–2028 | no change | No change |
Bands apply per share of household income under the <em>quotient familial</em> (family quotient). We found no change to employee social contribution rates on wages in PLFSS 2027.
Income tax: 2026 vs 2027 scale (single employee)
| Gross salary / year | Income tax, 2026 scale | Income tax, 2027 scale (draft) | Change |
|---|---|---|---|
| €25,000 | €198 | €141 | −€57 |
| €45,000 | €3,068 | €2,923 | −€145 |
| €80,000 | €10,890 | €10,745 | −€145 |
Single person, one share, no children, non-cadre employee; same gross and the same social contributions in both years (PASS held at €48,060 because the 2027 value is pending). Net taxable salary minus the 10% employment-expense deduction, then the scale and décote. At €25,000 the décote zone narrows the gain. 2027 follows the draft bill. If pay rises with inflation, most of the saving disappears: indexation only stops bracket creep.
Employees and retirees
What changes for you
<strong>Withholding (PAS).</strong> A personal withholding rate moves to the new scale from September 2027, after your 2026 return. The default grid for people without a personal rate changes on 1 January 2027: 0% below €1,669 a month, rising to 43% from €56,725 a month (draft).
<strong>Severance pay.</strong> The income tax exemption on dismissal and termination payments would be capped at one PASS (€48,060 in 2026), replacing today's multi-criteria limits. PLFSS 2027, the social security budget bill, unifies the contribution side the same way.
<strong>Sick pay.</strong> Daily allowances for long-term illness (ALD) become 50% taxable, the partial exemption for work-accident and occupational-disease allowances (AT/MP) goes, and CSG on these allowances rises from 6.2% to 9.2% for amounts paid from 1 January 2027.
<strong>Fuel allowance for 2026.</strong> The tax-free <em>prime carburant</em> would be open to all employees who use their own car, up to €1,000 for fuel and €600 for electric vehicles, retroactively for 2026.
<strong>Retirees.</strong> The 10% abatement on pensions (capped at €4,439 per household) gets a €3,000 sub-cap for retirement pensions.
<strong>Employment-expense deduction.</strong> The 10% flat deduction is indexed like the first band limit; exact limits follow the final law.
Self-employed
Micro-entrepreneurs: no change
Micro-entrepreneur turnover ceilings are fixed for 2026–2028, and we found no change to micro social-contribution rates in PLF or PLFSS 2027. The indexed scale applies to BIC and BNC profits taxed under the barème, and the reference-income limits for the <em>versement libératoire</em> (income tax paid together with contributions) move with it.
Expats and relocants
Household taxation and impatriés
The <strong>impatriés</strong> regime (CGI art. 155 B, up to 8 years) is not amended by PLF 2027.
Income tax is assessed per household. The quotient familial cap per half-share rises from €1,807 to €1,845, and for a single parent's first child from €4,262 to €4,352.
Newcomers with no French income history are withheld at the default grid, which is updated on 1 January 2027 (draft).
What is still open
FAQ
What are the French income tax brackets for 2027?
Under PLF 2027 (draft): 0% up to €11,844, 11% up to €30,200, 30% up to €86,353, 41% up to €185,737 and 45% above, per share of household income. This is the 2026 scale indexed by 2.1%. It applies to income earned in 2026 and declared in 2027.
Is the French 2027 budget adopted?
No. The bill was filed on 1 October 2026 and Parliament has 70 days, so adoption is expected in mid to late December 2026 at the earliest. The 2026 budget was only promulgated on 19 February 2026, so a delay is possible and the figures can still change.
Will my withholding tax change in January 2027?
If you have a personal withholding rate, it moves to the new scale from September 2027, after your 2026 return is processed. Only the default grid for people without a personal rate changes on 1 January 2027.
Does PLF 2027 change the impatriés regime or micro-entrepreneur rules?
No. The impatriés regime (up to 8 years) is not amended, micro-entrepreneur turnover ceilings are fixed for 2026–2028, and we found no change to micro social-contribution rates in either budget bill.
Sources
Keep reading
France tax calculator
Net salary after income tax and social contributions.
Salaries in France
Typical gross and net pay by level.
France tax brackets 2026
Rates, family quotient and how income tax is paid.
Cost of hiring in France
Employer contributions on top of gross salary.
Tax changes 2027 by country
What changes next year in other countries.
