Can couples be taxed individually in France?

Reader Question: In your tax guide you state that couples in France are taxed as a unit and there is no option to be taxed individually. I thought that had now changed? S.M.

In France, married or Pacs couples (and recognised foreign alternatives such as the UK civil partnership) are taxed as a family unit together with any minors they look after (plus certain students under 25) or disabled dependent adults who live under their roof.

This is referred to the foyer fiscal (tax household) and there is only one annual tax declaration per tax household, even though the declaration provides different columns for inserting income depending on who received it.

Read more: Is a new will required in France after getting married in the UK?

This has not changed. However, France’s longstanding annual tax return has for several years now been combined with a tax-at-source system, in which amounts are taken off French work income or pensions before they are paid out. 

Estimated instalments are also taken from people’s bank accounts with regard to regular known French-taxable incomes that cannot be directly taxed at source (eg. from French rents or foreign pensions).

When it comes to incomes that can be directly taxed at source, there are options for the rate used for this to be an averaged-out rate for the family or for ‘individual’ rates to be used, based on the level of people’s individual income streams.

In fact, as of September, the latter will be the default, unless couples choose otherwise in their account at impots.gouv.fr.

However, tax-at-source taken in a given tax year is reviewed after the foyer has made its annual spring declaration, with the possibility of refunds being made if too much has been taken once income from all sources, and all eligible deductions and tax credits and reductions are accounted for. 

The household may also be asked to pay extra if tax taken at source was not enough.

So, it is only tax-at-source that in some cases is now individual.