French Social Charges Set to Increase Under the 2026 Budget
- Authors
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- Name
- Patrick Maflin
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Following the implementation of the new French financial budget for 2026, the law has been passed to increase social charges from 17.2% to 18.6%, a huge increase of 1.4%. This increase is being levied on the CSG/CRDS part of the social charges, while the Prélèvement de Solidarité part will remain at 7.5%.
The following incomes will be affected by this increase:
- -Dividends (only if no S1 is held. If you are in receipt of an S1, the social charges will remain at 7.5%)
- -Capital gains on shares or other placements
- -Crypto gains
- -Plan d’épargne en actions (PEA) placements with French banks
- LMNP rental income
This increase is effective from 1st January 2026 and will apply to all income from 1st January 2025.
The French government have been told by the European Parliament that they are not allowed any further tax increases and therefore they are now starting to increase social charges. Whilst the 2026 budget has been set, they have not ruled out further increases in future years.
For individuals with French-source investment income or rental income, this change represents a meaningful rise in overall liabilities and reinforces the importance of forward planning. If you are unsure how this increase may affect your personal circumstances, particularly if you hold investments in France or receive rental income, get in touch with our helpful team today.
