It is not uncommon to say that one of the two inevitable things in life, right next to death, is taxes. We also need to prepare for them before moving to France. However, we must prepare for the fact that it has completely different tax laws, so before moving in, read carefully all taxes that we would have to pay as residents of France.
Personal taxes in France are divided into three main types:
In certain life situations, there are also occupation taxes (taxe d’habitation) and property taxes (taxe foncière). These are the main taxes the average French citizen should worry about paying.
Let’s start with income tax. In France, specific tax percentages are quite clearly defined for a specific amount of money paid out. For 2021, they are as follows:
Taking into consideration that the average annual salary in France for 2021 is around €39,346, the average French pays income tax of 30% of his salary, which is around €11,803 for the amount quoted.
Meanwhile, the French health insurance contribution is 0.75% of the worker’s wage. It is part of the contribution paid by the employee, the total amount is 13.55%, of which 12.8% is paid by the employer. With the average contribution quoted, the contribution is therefore €295.
VAT taxes, on the other hand, differ depending on the product or service purchased by us, but they are determined in advance for a given type of product. So, VAT in France is:
Non-French citizens usually pay income tax of 20% on income up to €27,519 and 30% above this amount. However, this income must come from a French source. They also include all VAT and health insurance contributions, if employed.