The French flat tax is no longer 30%. The flat rate of income tax has not moved and remains set at 12.8%, but the CSG (contribution sociale généralisée) on investment income and on income from savings products was raised to 10.6% by the Law of 25 June 2026, in force on 27 June and applicable to income taxable in respect of the year 2026. Dividends therefore bear 31.4%. Several savings wrappers remain at 9.2% by way of derogation, but the equity savings plan (plan d'épargne en actions, PEA) is not among them.
ToolDividend tax calculatorWork out the net amount of a distribution under the flat-rate levy and, alongside it, under the option for the progressive scale.What is the flat tax rate in 2026?
What is the flat tax rate on dividends in 2026?
31.4%, being 12.8% of flat-rate tax and 18.6% of social levies. 1° of B of 1 of article 200 A of the French Tax Code provides that "the flat rate referred to in the first paragraph of this 1 is set at 12.8%". Point 2° of I of article L. 136-8 of the French Social Security Code sets at 10.6% the rate of the social contributions referred to in articles L. 136-6 and L. 136-7 of the same code, under which distributed income falls. The 18.6% rate is the one the URSSAF, the French social security contributions collection agency, simulator applies to gross dividends.
| Type of income | Flat-rate tax | Social levies | Total |
|---|---|---|---|
| Distributed income, including dividends | 12.8% | 18.6%, according to the URSSAF simulator | 31.4% |
| Withdrawal from or closure of an equity savings plan | Not set by the texts cited | CSG at 10.6% | Not determinable |
| Capitalisation bonds and contracts under article 125-0 A of the French Tax Code | Rate in b of 2 of II of article 125-0 A, to which 2° of B of 1 of article 200 A refers for premiums paid on or after 27 September 2017, where its conditions are met | CSG at 9.2% | Not determinable |
| Gains under articles 150 U to 150 UC of the French Tax Code | Not set by the texts cited | CSG at 9.2% | Not determinable |
| Home savings accounts (compte d'épargne logement, CEL) opened up to 31 December 2017, home savings plans (plan d'épargne-logement, PEL), popular savings plans (plan d'épargne populaire) | Not set by the texts cited | CSG at 9.2% | Not determinable |
Does the increase affect the 12.8% rate?
No: it affects the social component. The 12.8% rate in article 200 A of the French Tax Code has been in force since 21 February 2026 and derives from article 126 of Law no. 2026-103 of 19 February 2026. The increase comes from another text: article 65 of Law no. 2026-534 of 25 June 2026, which amended article L. 136-8 of the French Social Security Code, in force since 27 June 2026. These provisions apply to income taxable in respect of 2026 and subsequent years.
What is the CSG rate on income from assets since 27 June 2026?
10.6% for the contributions in articles L. 136-6 and L. 136-7 of the French Social Security Code. I of article L. 136-8 of the French Social Security Code, in force since 27 June 2026, sets three rates: 9.2% for the contribution in article L. 136-1, 10.6% for those in articles L. 136-6 and L. 136-7, 7.2% for that in I of article L. 136-7-1. Income from assets and income from savings products fall under those two articles, subject to the derogations in IV of the same article L. 136-8, which maintain 9.2%. That derogation stops at 4° of II of article L. 136-7 of the French Social Security Code: 5° of the same II, which covers the net gain realised on a withdrawal of sums or securities from, or the closure of, a PEA, does not appear in it.
Where does the 18.6% total of social levies come from?
From the URSSAF simulator's calculation, which corroborates that total. An entry of EUR 10,000 of gross dividends on mon-entreprise.urssaf.fr, on 7 October 2026, returns EUR 6,860 net and displays the breakdown "Net dividends 68.6% / Contributions 18.6% / Tax 12.8%". The texts cited set only the rate of the contribution sociale généralisée, raised to 10.6%: the composition of the 18.6% requires a case-by-case examination.
Which enactment raised the CSG, and since when has it applied?
Which law raised the CSG on income from assets?
Law no. 2026-534 of 25 June 2026, in its article 65. It is that enactment which amended article L. 136-8 of the French Social Security Code, the provision that sets the rate of the social contributions. The increase therefore does not stem from a social security financing act (loi de financement de la sécurité sociale) passed in December 2025.
When did the increase in the CSG come into force?
On 27 June 2026. The applicable wording of article L. 136-8 of the French Social Security Code, as it results from article 65 of Law no. 2026-534 of 25 June 2026, has been in force since 27 June 2026. The date of 1 January 2026, often cited, corresponds to nothing in that enactment. Two dates must be distinguished: 27 June 2026, the date on which article L. 136-8 of the French Social Security Code came into force, and the year 2026, the tax period of the income concerned.
At what rate is the CSG on income from assets and on investment income set?
At 10.6%. I of article L. 136-8 of the French Social Security Code sets the rate of the social contributions "at 9.2% for the social contribution referred to in article L. 136-1", "at 10.6% for the social contributions referred to in articles L. 136-6 and L. 136-7" and "at 7.2% for the social contribution referred to in I of article L. 136-7-1". It is articles L. 136-6 and L. 136-7 of the French Social Security Code which cover income from assets (revenus du patrimoine) and investment income (produits de placement). The rate of 10.6% applies to them, subject to the derogations listed in IV of that same article L. 136-8.
Does the increase affect a dividend paid in January 2026?
Yes, because the enactment applies to income taxable in respect of the year 2026. The first sentence of IV of article 65 of Law no. 2026-534 of 25 June 2026 provides that those provisions apply "to income taxable in respect of the year 2026 and subsequent years". The test adopted by the law is the year in respect of which the income is taxable, and not the date of entry into force of 27 June 2026. The rate changed during the course of the year, for the whole of the year: a distribution made in January 2026 falls within the same tax year as a distribution made in December 2026. The consequences for the sums already withheld in 2026 call for a case-by-case examination.
Does the CSG remain deductible up to 6.8 percentage points?
Yes, the deductible fraction remains set at 6.8 percentage points. Article 65 of Law no. 2026-534 of 25 June 2026 also amended article 154 quinquies of the French Tax Code, II of which has been in force since 27 June 2026 and applies "to the income tax due in respect of the year 2026 and subsequent years". That II allows the contribution relating solely to the income it lists, including the distributed income referred to in 1° of I of article L. 136-7 of the French Social Security Code, to be deducted, "up to 6.8 percentage points", from the taxable income of the year in which the contribution is paid, and on condition that the income so listed is taxed in accordance with article 197 of the French Tax Code. The deductible fraction therefore remains set at 6.8 percentage points even though the rate of the CSG is raised to 10.6%.
Which investments escape the increase in the CSG?
Which investments remain at a CSG rate of 9.2%?
Five categories of income, listed in IV of article L. 136-8 of the French Social Security Code. That IV, in the wording resulting from Law no. 2026-534 of 25 June 2026 and in force since 27 June 2026, provides that "by way of derogation from I, the following are subject to the social contribution at the rate of 9.2%": the income which it lists in five points. The 2° of I of the same article, by contrast, sets at 10.6% the rate of the social contributions referred to in articles L. 136-6 and L. 136-7 of the same code, and those provisions apply to income taxable in respect of the year 2026 and subsequent years. None of those five points names an investment: each refers to article L. 136-6 or to article L. 136-7 of the same code. The 1° of IV thus does no more than refer to "the income referred to in a of I of article L. 136-6", without designating it otherwise, and its characterisation calls for a case-by-case examination.
| Income or savings vehicle | Provision of the French Social Security Code | CSG rate |
|---|---|---|
| Income referred to in a of I of article L. 136-6 of the French Social Security Code | 1° of IV of article L. 136-8 | 9.2% |
| Gains on disposals of real property under articles 150 U to 150 UC of the French Tax Code | 2° of I of article L. 136-7, referred to in 2° of IV of article L. 136-8 | 9.2% |
| Home savings accounts opened up to 31 December 2017 and home savings plans | 1°, 2° and 2° bis of II of article L. 136-7, referred to in 3° of IV of article L. 136-8 | 9.2% |
| Capitalisation bonds and contracts and investments of the same nature under article 125-0 A of the French Tax Code | 3° of II of article L. 136-7, referred to in 4° of IV of article L. 136-8 | 9.2% |
| Popular savings plans (plan d'épargne populaire, PEP), life annuities and savings bonuses under the first paragraph of 22° of article 157 of the French Tax Code | 4° of II of article L. 136-7, referred to in 5° of IV of article L. 136-8 | 9.2% |
| Equity savings plan defined in article 163 quinquies D of the French Tax Code | 5° of II of article L. 136-7, which IV of article L. 136-8 does not carry over | 10.6% |
Does the sale of a property attract the CSG at 10.6%?
No: the CSG remains at 9.2% on those gains. IV of article L. 136-8 of the French Social Security Code maintains that rate, in its 2°, for the gains referred to in 2° of I of article L. 136-7 of the same code, which refers to "the gains referred to in articles 150 U to 150 UC of the French Tax Code", that is, gains on disposals of real property. The increase to 10.6% resulting from Law no. 2026-534 of 25 June 2026 does not reach them.
Are my PEL, my CEL and my PEP affected by the increase?
No, those three savings vehicles remain at a CSG rate of 9.2%. IV of article L. 136-8 of the French Social Security Code maintains that rate for "the interest and savings bonuses on home savings accounts […] opened up to 31 December 2017" in 1° of II of article L. 136-7 of the same code, for the interest in 2° and the bonuses in 2° bis of the same II, which refer to home savings plans, and for "the income from popular savings plans" in 4° of that II. Those three savings vehicles therefore remain outside the scope of the increase to 10.6% resulting from Law no. 2026-534 of 25 June 2026.
Does a life assurance policy escape the CSG at 10.6%?
Yes, the CSG remains at 9.2% on the income from the policy. IV of article L. 136-8 of the French Social Security Code maintains that rate, in its 4°, for the income referred to in 3° of II of article L. 136-7 of the same code, which refers to "the income attaching to capitalisation bonds or contracts, and to investments of the same nature referred to in article 125-0 A of the French Tax Code, whatever their date of subscription". The date of subscription is therefore immaterial for that 9.2% rate. The rate of income tax applicable to the income from a surrender, by contrast, is governed by another provision, 1° of B of 1 of article 200 A of the French Tax Code and the cross-reference in its 2°.
Is the PEA affected by the increase?
Does my PEA escape the increase in the CSG?
No. The equity savings plan is not among the categories listed in IV of article L. 136-8 of the French Social Security Code, as amended by Law no. 2026-534 of 25 June 2026 and in force since 27 June 2026. Gains on the plan are therefore subject to the rate of 10.6% set by 2° of I of that same article L. 136-8 for the social contributions referred to in articles L. 136-6 and L. 136-7 of the French Social Security Code, and not to the rate of 9.2% which IV preserves for certain savings wrappers.
Why is the PEA not among the investments that are spared?
Because the derogation stops one item short of it. IV of article L. 136-8 of the French Social Security Code lists five categories which, by way of derogation from I, it makes subject to the social contribution at the rate of 9.2%, and its last cross-reference to II of article L. 136-7 of the same code covers "the proceeds, life annuities and savings bonuses referred to in 4° of that same II", that is to say the proceeds of popular savings plans (plans d'épargne populaire) as well as the life annuities and the savings bonuses which that 4° mentions. The equity savings plan, for its part, falls under 5° of II of article L. 136-7 of the French Social Security Code. The derogation stops at 4°: it does not extend to 5°.
Which provision covers a withdrawal from a PEA or its closure?
5° of II of article L. 136-7 of the French Social Security Code. That 5° covers "the net gain realised or the life annuity paid on a withdrawal of sums or securities or on the closure of an equity savings plan as defined in article 163 quinquies D". Article 163 quinquies D of the French Tax Code is the provision to which that 5° refers for the definition of the equity savings plan. A withdrawal from an equity savings plan and the closure of such a plan are therefore expressly covered by article L. 136-7 of the French Social Security Code, and it is that classification which brings the net gain within the scope of the rate of 10.6%.
From which year does the 10.6% rate apply to my PEA?
As from income taxable in respect of the year 2026. Article 65 of Law no. 2026-534 of 25 June 2026 amended article L. 136-8 of the French Social Security Code, the wording of which has been in force since 27 June 2026, and those provisions "apply to income taxable in respect of the year 2026 and subsequent years". The test laid down by the legislation is therefore the year in which the income is taxed: the year 2026 and subsequent years. The position of a withdrawal already made from an equity savings plan since the beginning of the year 2026 calls for a case-by-case examination.
Should I close my PEA because of the increase?
The question is not settled by the CSG rate alone. What these provisions determine is narrow: 5° of II of article L. 136-7 of the French Social Security Code is not carried over into the derogation in IV of article L. 136-8 of the same code, and the applicable rate of CSG is 10.6%. The income tax regime specific to the equity savings plan, the date on which the plan was opened and how long ago the payments into it were made are not governed by those provisions and call for a case-by-case examination.
Why are dividends taxed at 31.4% and not at 30%?
What rate applies to a dividend paid by my company in 2026?
31.4%: 12.8% flat-rate tax and 18.6% social levies. 1° of B of 1 of article 200 A of the French Tax Code, in force since 21 February 2026, sets the flat rate of income tax at 12.8%. It is the social component that has increased: 2° of I of article L. 136-8 of the French Social Security Code sets at 10.6% the rate of the social contributions referred to in articles L. 136-6 and L. 136-7 of the same code, under which dividends fall. The total of 18.6% of social levies is the one applied by the URSSAF simulator, whose engine therefore adopts 31.4%.
Why do dividends not escape the increase in the CSG?
Because they do not appear in the list in IV of article L. 136-8 of the French Social Security Code. Dividends fall under 1° of I of article L. 136-7 of the French Social Security Code, which covers "distributed income on which the levy provided for in article 117 quater […] is made, as well as the distributed income referred to in 1° of 3 of article 158" of the French Tax Code. IV of article L. 136-8 of the French Social Security Code maintains 9.2% for a list of income and products set out in points 1° to 5°, in which 1° of I of article L. 136-7 does not appear. The rate of social contribution applicable to dividends is therefore that in 2° of I of article L. 136-8 of the French Social Security Code, namely 10.6% and not 9.2%.
How much is left out of EUR 10,000 of gross dividends?
EUR 6,860. On EUR 10,000 of gross dividends, the flat-rate tax of 12.8% amounts to EUR 1,280 and the social levies of 18.6% amount to EUR 1,860, making EUR 3,140 of total levies and EUR 6,860 net. The URSSAF simulator, consulted on 7 October 2026, returns the same net amount of EUR 6,860 for that input.
Does the 30% rate I read about everywhere still apply?
No, not to dividends taxable in respect of the year 2026. I of article L. 136-8 of the French Social Security Code, as amended by article 65 of Law no. 2026-534 of 25 June 2026, has been in force since 27 June 2026, and its provisions apply to income taxable in respect of the year 2026 and subsequent years. The total applicable to a dividend is 31.4%, that is 12.8% flat-rate tax and 18.6% social levies according to the URSSAF simulator: the figure of 30% no longer corresponds to the rate to be provided for.
If I opt for the progressive income tax scale, what fraction of the CSG remains deductible?
6.8 percentage points, unchanged. Paragraph II of article 154 quinquies of the French Tax Code, in force since 27 June 2026 and amended by the same Law no. 2026-534 of 25 June 2026, provides that the contribution relating to the income referred to in 1° of I of article L. 136-7 of the French Social Security Code, which includes dividends, taxed under the conditions provided for in article 197 of the French Tax Code, is "allowed as a deduction from the taxable income of the year in which it is paid, up to 6.8 percentage points". Those provisions apply to the income tax due in respect of the year 2026 and subsequent years. The social contribution rises to 10.6 percentage points, the deductible fraction remains at 6.8 percentage points, and the non-deductible share therefore rises from 2.4 to 3.8 percentage points for anyone opting for the scale.
Can my dividend escape that 31.4%?
Only a case-by-case examination can answer that. The rate of 31.4% adds together the flat-rate tax of 12.8% and the social levies of 18.6%, leaving aside any option for the progressive income tax scale. Opting for the scale opens up the allowance of 40% provided for in 2° of 3 of article 158 of the French Tax Code, subject to the conditions that provision sets out and to the exclusions in its point 3°. The other parameters depend on the position of the company director and of the distributing company, and call for a quantified simulation.
Should you opt for the progressive income tax scale?
What changes for your dividends if you opt for the progressive income tax scale?
Two mechanisms that only the option opens up: the 40% allowance on dividends and the deduction of part of the CSG. The first is set out in 2° of 3 of article 158 of the French Tax Code, which reduces distributed income "by an allowance equal to 40% of the gross amount received". The second is set out in II of article 154 quinquies of the French Tax Code, which allows the CSG to be deducted from the taxable income of the year in which it is paid "up to 6.8 percentage points", and only for income "taxed in accordance with article 197 of this code". That income includes the income referred to in 1° of I of article L. 136-7 of the French Social Security Code, where dividends fall, and those provisions apply to the income tax due in respect of the year 2026 and subsequent years. Both operate on income tax. Neither affects the rate of the social contribution, which 2° of I of article L. 136-8 of the French Social Security Code sets at 10.6% for the social contributions referred to in articles L. 136-6 and L. 136-7 of the same code.
When does the 40% allowance apply?
Two conditions, one on where the company has its registered office and one on how the distribution was decided, and then the exclusions the provision itself sets out. 2° of 3 of article 158 of the French Tax Code confines the allowance equal to 40% of the gross amount received to income distributed by companies liable to corporate income tax "having their registered office in a State of the European Union or in a State or territory which has concluded a tax treaty with France […] containing an administrative assistance clause" and "resulting from a duly adopted decision of the competent corporate bodies". 3° of the same 3 lists the exclusions, among them venture capital companies and listed property investment companies (sociétés d'investissements immobiliers cotées, SIIC).
Does the higher CSG make the option for the scale less attractive?
No: it does not shift the trade-off, because it weighs the same on both routes. 2° of I of article L. 136-8 of the French Social Security Code has set the rate of the social contributions referred to in articles L. 136-6 and L. 136-7 of the same code at 10.6% since 27 June 2026, for income taxable in respect of the year 2026 and subsequent years, and that rate does not depend on the option. II of article 154 quinquies of the French Tax Code, as amended by article 65 of the same Law no. 2026-534 of 25 June 2026, keeps the deduction at 6.8 percentage points. The Law has therefore raised the rate of the contribution without raising the deductible fraction: the additional 1.4 percentage points are not deductible, and the non-deductible share rises from 2.4 to 3.8 percentage points. That leaves the basis of assessment taxed under the scale untouched, and it leaves untouched the flat rate of 12.8% in 1° of B of 1 of article 200 A of the French Tax Code: the comparison between the two routes is the same one as before the increase.
How do I know whether the option is favourable in my case?
Only by a calculation worked through on that case, and on that case alone. No single overall rate settles the question in advance. The calculation sets the flat rate of 12.8% laid down in 1° of B of 1 of article 200 A of the French Tax Code against taxation in accordance with article 197 of the same code, after the 40% allowance and the deduction of 6.8 percentage points. The two routes leave the same net amount at a marginal rate of income tax of 24.06%. That figure is the ratio between the 12.8 percentage points of the flat-rate levy and the 53.2% of the gross amount which remains under the scale once the 40% allowance and the 6.8 percentage points of deductible CSG have been taken off. Below that rate the scale leaves more; above it the flat-rate levy does. The break-even point assumes a marginal rate which stays constant across the whole of the distribution and a deduction set off against income of the same year. The dividend payment simulator works the calculation through on a given amount. A case-by-case examination is nonetheless required, all the more so because not all income from assets and income from savings products bears the same rate of CSG: IV of article L. 136-8 of the French Social Security Code keeps several categories at 9.2%.
What rate applies to the surrender of a life assurance policy?
Is my life assurance surrender affected by the increase in the CSG?
No: the CSG remains at 9.2% on life assurance income. Article L. 136-8 of the French Social Security Code, in the wording resulting from Law no. 2026-534 of 25 June 2026 and in force since 27 June 2026, provides at its IV that, by way of derogation from I, the income referred to at 4° of that IV is subject to the social contribution at the rate of 9.2%, namely the income mentioned at 3° of II of article L. 136-7 of the same code. That 3° of II covers "the income attaching to capitalisation bonds or contracts, as well as to investments of the same nature mentioned in article 125-0 A of the French Tax Code […]". The 2° of I of article L. 136-8 of the French Social Security Code, for its part, sets at 10.6% the rate of the social contributions mentioned in articles L. 136-6 and L. 136-7 of the same code, for income taxable in respect of the year 2026 and subsequent years.
Are capitalisation contracts treated in the same way as life assurance?
Yes, the legislation covers them together. The 3° of II of article L. 136-7 of the French Social Security Code designates the income attaching to capitalisation bonds or contracts as well as to investments of the same nature mentioned in article 125-0 A of the French Tax Code. The 4° of IV of article L. 136-8 of the French Social Security Code, in its version in force since 27 June 2026, refers back to that 3° of II: the social contribution remains set there at 9.2%, by way of derogation from the rate of 10.6% in 2° of I of the same article.
Does the date on which I took out my policy change the CSG rate?
No: the legislation applies whatever the date on which the policy was taken out. The 3° of II of article L. 136-7 of the French Social Security Code covers that income "whatever their date of subscription". An old policy and a recent policy therefore come under the same CSG rate of 9.2%, under 4° of IV of article L. 136-8 of the French Social Security Code, in its version in force since 27 June 2026.
What rate of income tax applies to the income from the surrender?
It depends on the date on which the premiums were paid. The 1° of B of 1 of article 200 A of the French Tax Code, in the wording resulting from Law no. 2026-103 of 19 February 2026 and in force since 21 February 2026, sets the flat rate at 12.8%. The 2° of the same B refers, for life assurance income attaching to premiums paid on or after 27 September 2017, to the rate in b of 2 of II of article 125-0 A of the French Tax Code where the conditions of that b are met, with a threshold of EUR 150,000 of premiums. That cross-reference is governed by the date on which the premiums were paid, and not by the date on which the policy was taken out. The effect of that threshold for a given policy calls for a case-by-case examination.
Can a single overall rate be stated for a life assurance surrender?
No, and this is the point to check before requesting a surrender. The rate of the social contribution is established by the legislation: 9.2%, under 4° of IV of article L. 136-8 of the French Social Security Code, in its version in force since 27 June 2026. The rate of income tax, for its part, depends on the cross-reference from 2° of B of 1 of article 200 A of the French Tax Code to b of 2 of II of article 125-0 A of the same code, and therefore on the date of the premiums and on the EUR 150,000 threshold. Stating a single percentage presupposes information that those two provisions do not give. The figure that matters is calculated policy by policy, on the basis of the premiums.
The mistakes read everywhere about the 2026 flat tax
Does the increase come from a social security financing act?
No: it results from Law no. 2026-534 of 25 June 2026, in its article 65. Article L. 136-8 of the French Social Security Code, in the wording resulting from that law, has been in force since 27 June 2026. It is neither a social security financing act of December 2025, nor an application from 1 January 2026. The application clause is written out: the provisions apply to income taxable in respect of the year 2026 and subsequent years.
| What you read | What the text says |
|---|---|
| A social security financing act of December 2025 | Law no. 2026-534 of 25 June 2026, article 65 |
| An application from 1 January 2026 | In force on 27 June 2026, income taxable in respect of the year 2026 |
| A single flat-rate levy of 30% | 12.8% in tax, a CSG of 10.6%; 31.4% in all |
| The equity savings plan spared by the increase | The derogation in IV stops at 4° of II of article L. 136-7; the PEA is at 5° |
| A deductible CSG that has followed the increase | 6.8 percentage points, unchanged (article 154 quinquies, II of the French Tax Code) |
Why is a rate of 30% still being quoted?
Because some presentations have not been corrected after the increase in the CSG to 10.6%. Since 2° of I of article L. 136-8 of the French Social Security Code set at 10.6% the rate of the social contributions referred to in articles L. 136-6 and L. 136-7 of the same code, the total applicable to a dividend has been 31.4%: 12.8% of flat-rate tax and 18.6% of social levies. The figure of 30% no longer corresponds to the rate to be provided for.
Why do some savings wrappers remain at 9.2%?
Because IV of article L. 136-8 of the French Social Security Code derogates from it, by means of a list of cross-references. That IV names no wrapper. It refers to a of I of article L. 136-6 of the French Social Security Code, then to headings of article L. 136-7 of the same code: those headings designate gains on disposals of real property, home savings accounts and home savings plans, the income attached to the capitalisation bonds or contracts mentioned in article 125-0 A of the French Tax Code, and the income from popular savings plans. The retention of the 9.2% rate therefore does not stem from a concession granted wrapper by wrapper, but from those cross-references.
Has the deductible CSG followed the increase?
No: the deduction remains capped at 6.8 percentage points. Article 154 quinquies, II of the French Tax Code, in the wording in force since 27 June 2026, allows the CSG as a deduction from the taxable income of the year in which it is paid "up to 6.8 percentage points". The CSG itself is raised to 10.6% by article L. 136-8 of the French Social Security Code. For a person who opts for the progressive income tax scale, the non-deductible share therefore rises from 2.4 to 3.8 percentage points. The choice between the flat rate of 12.8% and the progressive income tax scale is made on a case-by-case basis.
Frequently asked questions on the flat tax
I pay myself dividends: what percentage should I set aside in 2026?
31.4%. 1° of B of 1 of article 200 A of the French Tax Code sets the flat rate of income tax at 12.8%, and article L. 136-8 of the French Social Security Code raises the CSG to 10.6% for the contributions mentioned in articles L. 136-6 and L. 136-7 of the same code. The social levies as a whole amount to 18.6% according to the simulator published by URSSAF, the body that collects French social security contributions; that simulator returns EUR 6,860 net for an entry of EUR 10,000 of gross dividends. That total of 31.4% is the flat tax total; opting for the progressive income tax scale leads to a different calculation, which depends on the circumstances of the household.
I paid a dividend in March 2026, before the new law: which rate of CSG applies?
The 10.6% rate. The CSG on income from assets and on investment income was raised to 10.6% by article 65 of Law no. 2026-534 of 25 June 2026, and article L. 136-8 of the French Social Security Code has been in force in that wording since 27 June 2026. Those provisions apply to income taxable in respect of 2026 and subsequent years: a distribution made in March 2026 is income of 2026. The increase therefore results neither from a social security financing act nor from an application as from 1 January 2026. The position of a distribution already made since the beginning of the year calls for a case-by-case review.
Has the 12.8% flat tax rate increased in 2026?
No. 1° of B of 1 of article 200 A of the French Tax Code, in the wording in force since 21 February 2026 resulting from article 126 of Law no. 2026-103 of 19 February 2026, still sets that flat rate at 12.8%. The 2026 increase bears on the social component alone: article L. 136-8 of the French Social Security Code sets the CSG at 10.6% for the contributions mentioned in articles L. 136-6 and L. 136-7 of the same code. For a dividend, the total therefore comes to 31.4%, being 12.8% of flat-rate tax and 18.6% of social levies, the rate adopted by the URSSAF simulator.
Why does my home savings plan stay at a CSG rate of 9.2% while my equity savings plan goes up to 10.6%?
Because the derogation stops short of the PEA. IV of article L. 136-8 of the French Social Security Code keeps the CSG at 9.2% for the interest and bonuses on home savings plans, mentioned in 2° and 2° bis of II of article L. 136-7 of the same code, and its list ends at 4° of II of that article. The net gain realised on a withdrawal of sums or securities from, or on the closure of, an equity savings plan defined in article 163 quinquies D of the French Tax Code appears in 5° of II of article L. 136-7 of the French Social Security Code, which the derogation does not carry over: the CSG there is 10.6%. The difference comes down to the rank of the subparagraph, and not to any favourable treatment granted to savings.
Does the increase in the CSG hit my savings in the same way as my dividends?
No, five categories remain at 9.2%. IV of article L. 136-8 of the French Social Security Code keeps that rate for the income mentioned in a of I of article L. 136-6 of the same code, for the gains mentioned in 2° of I of article L. 136-7, which refers to articles 150 U to 150 UC of the French Tax Code and designates gains on disposals of real property, for the interest and bonuses on home savings accounts opened up to 31 December 2017 and those on home savings plans, for the income attached to capitalisation bonds or contracts and to investments of the same nature mentioned in article 125-0 A of the French Tax Code, and for the income from popular savings plans. The income which that list does not cover falls under the 10.6% rate, dividends included. The equity savings plan does not appear in it.
Can I combine the flat tax with the 40% allowance on my dividends?
No. II of article 154 quinquies of the French Tax Code expressly reserves the deduction of 6.8 percentage points of CSG to income "taxed under the conditions provided for in article 197 of the present code", that is to say to income taxed under the progressive income tax scale. The allowance equal to 40% of the gross amount received, provided for in 2° of 3 of article 158 of the French Tax Code, for its part reduces the distributed income "for the purposes of calculating income tax", and not the flat rate of 12.8% set by 1° of B of 1 of article 200 A of the French Tax Code. Both advantages therefore attach to taxation under the scale, and the choice between the two routes is to be checked with the figures in hand.
Do dividends from a foreign company qualify for the 40% allowance?
Yes, subject to the condition as to the registered office laid down by the legislation. Point 2° of 3 of article 158 of the French Tax Code reserves the 40% allowance to income distributed by companies liable to corporate income tax whose registered office is in a State of the European Union or in a State or territory which has concluded with France a tax treaty containing an administrative assistance clause. A company whose registered office lies outside that perimeter does not qualify for it. The condition that the distribution be duly resolved upon by the competent bodies, laid down by the same provision, and the exclusions in 3° of the same 3 are then to be checked distribution by distribution.
Since the increase, is it better to pay yourself remuneration or dividends?
The question is not settled by a rate. For a dividend subject to the flat tax, the flat-rate tax is 12.8% under 1° of B of 1 of article 200 A of the French Tax Code and the social levies are 18.6% according to the URSSAF simulator, giving 31.4%. The remuneration of a company director, by contrast, falls under a contributions regime which article L. 136-8 of the French Social Security Code does not set, and which depends on the status chosen. That trade-off is to be examined on a case-by-case basis, on the figures of the company and those of the household.
A distribution to weigh up?
The firm reviews the trade-off between distribution, remuneration and retained earnings in the light of your situation and the form of your company. An initial 10-minute discussion makes it possible to frame your question and decide what to do with it.