Flat Tax (PFU) Calculator
Written by Thierno Sadou Diallo, formula verified per our methodology • Last checked on 9/10/2026
The French flat tax (PFU) is calculated with income × 31.4% (12.8% income tax + 18.6% social contributions since 2026). An income of €1,000 generates €314 of flat tax, leaving a net of €686.
Explanation
France's flat tax ("prélèvement forfaitaire unique", PFU) has applied by default since 2018 to capital income (interest on non-regulated accounts, stock dividends, capital gains from selling securities): it combines into a single fixed-rate levy the income tax (12.8%, set by article 200 A of the French General Tax Code and unchanged since its creation) and social contributions (18.6% since the 2026 Social Security Financing Act, up from 17.2% before), for an overall rate of 31.4%. This calculator directly complements a social-contributions-only view of the same income (the kind used to size a dividend yield, for instance): here, both components are detailed separately and then added together, giving the total amount actually withheld. Taxpayers always keep the option of choosing the progressive income tax scale instead of the PFU (a single global election, applying to all of that year's capital income), a choice mainly advantageous for lightly taxed households whose real marginal rate would be below 12.8% — an arbitration worth running before locking in a long-term plan like our retirement savings calculator.
Example: €1,000 of capital income
Inputs
Capital income: €1,000.
Calculation
Tax = €1,000 × 12.8% = €128. Social contributions = €1,000 × 18.6% = €186. Total flat tax = €128 + €186 = €314. Net = €1,000 − €314 = €686.
Result
On €1,000 of capital income, the flat tax withholds €314, leaving a net of €686.
Frequently asked questions
Is the flat tax mandatory?
No, the PFU applies by default but taxpayers can elect each year to use the progressive income tax scale instead, for all of that year's capital income (a single global election, not per income item). This choice is irrevocable once the tax return is filed and is only advantageous if the household's real marginal tax rate is below 12.8%.
Does the flat tax apply to Livret A and other regulated savings accounts?
No, interest from Livret A and other regulated savings accounts (LDDS, LEP) is explicitly exempt from both income tax and social contributions, so entirely outside the scope of the flat tax — unlike a standard savings account, whose growth our compound interest calculator models before this tax applies.
Why is the overall rate no longer 30% as often cited?
The 30% rate (12.8% + 17.2%) circulated widely in financial literature for years, but the 2026 Social Security Financing Act raised the social-contributions component to 18.6%, mechanically bringing the flat tax's overall rate to 31.4%, with no change to the tax component (12.8%, still fixed).