France levies a second set of charges on top of income tax — and for UK expats with pensions, savings, or rental income, they can add up to 18.6%. Many people don't know they exist until they see their first bill.
- Social charges are a second tax on top of income tax — up to 18.6% on investment income and 9.1% on pension income in 2026
- If you hold an S1 certificate, your rate drops to 7.5% on investment and rental income, and zero on pension income
- Social charges on pension income are not calculated automatically — you must declare them yourself or risk a backdated bill covering up to three years
- None of the available reductions are applied automatically — you have to claim every one of them
Most UK expats expect to pay income tax in France. What they don't expect is the second bill.
France adds a separate set of charges on top of income tax — called social charges — to fund the French healthcare and benefits system. They're not a subset of income tax. They're a completely separate obligation, calculated differently, declared differently, and easy to miss.
Even if your income is low enough that you owe no income tax at all, you may still owe social charges. On investment income the rate is 18.6%. On rental income, 17.2%. On pension income, up to 9.1% — though this can be reduced or eliminated depending on your situation.
If you hold an S1 certificate, the picture is significantly better. But you still need to claim it — it doesn't apply automatically.
This guide explains what social charges are, which rates apply to which income, and the mistakes that lead to backdated bills.
For context on how social charges fit into the wider picture, see our overview of how the French tax system works. For how your S1 status affects the rates you pay, see our S1 guide.
What Social Charges Are Made Up Of
Social charges are not a single charge — they are three separate levies applied together:
CSG (Contribution Sociale Généralisée) The largest component. It funds social security generally. The rate varies by income type — 10.6% on investment income (dividends, interest) and 9.2% on property income (rental). For pension income the rate is lower and depends on your household income level.
CRDS (Contribution pour le Remboursement de la Dette Sociale) A flat 0.5% on most income types. This exists specifically to pay off historical social security debt. It is small but universal.
Solidarity Levy (Prélèvement de Solidarité) A 7.5% charge that replaced several older components in 2019. This is the one component that S1 holders still pay — the CSG and CRDS are the parts they are exempt from.
For most people the total rate is what matters for budgeting. But the breakdown between components matters specifically if you hold an S1 certificate — because the exemption applies to CSG and CRDS, leaving only the 7.5% solidarity levy.
For the full current rate breakdown, see the social charges section on the Taxpert data page →
Which Income Types Attract Social Charges — and at What Rate
Different income types are charged at different rates. Here's what applies in 2026:
Investment income (dividends, interest, capital gains) — 18.6%
This rate increased in 2026. If you received investment income in 2025 and were expecting 17.2%, note that the higher rate applies retroactively — it covers 2025 income declared in spring 2026.
The 18.6% breaks down as three separate charges added together:
- 10.6% — the main healthcare and social security contribution
- 0.5% — a small levy that exists to pay off historical social security debt
- 7.5% — a solidarity contribution
You don't need to calculate these separately — the total is what matters for budgeting. The breakdown only becomes relevant if you hold an S1 (more on that below).
Rental income — 17.2%
Furnished and unfurnished rental income is charged at 17.2% on your taxable rental profit — that is, after any allowable deductions or the standard allowance have been applied.
Pension income — up to 9.1% (if you don't have an S1)
Pension income attracts lower social charges than investment income. The maximum rate is 9.1% — but the rate you actually pay depends on your household income from two years ago. Lower household income means a lower rate, and some people pay nothing at all.
One important point: social charges on pension income are not worked out automatically by the tax office. You have to declare them yourself. If you skip this, you may receive a backdated bill covering up to three years. This is covered in detail below.
Important: UK Government Service Pensions (civil service, armed forces, police, fire service, most local authority pensions) are entirely exempt from French social charges under the France-UK Double Taxation Agreement — the treaty assigns sole taxing rights to the UK. See our guide to UK Government Service Pensions.
Employment Income — 9.7%
Employment income is subject to 9.7% (9.2% CSG + 0.5% CRDS). This is typically handled via payroll if you are employed in France.
The S1 Effect — How Your Healthcare Status Changes Everything
If you hold an S1 certificate, the picture changes significantly. The S1 certifies that the UK is responsible for your healthcare costs, which means you are exempt from the CSG and CRDS components. You pay only the 7.5% solidarity levy on wealth income.
| Income Type | Without S1 | With S1 |
|---|---|---|
| Investment income (dividends, interest) | 18.6% | 7.5% |
| Rental income | 17.2% | 7.5% |
| Pension income | Up to 9.1% | 0% — fully exempt |
To claim this on your return, tick box 8SH (Declarant 1) or box 8SI (Declarant 2) on Form 2042-C. The exemption is not applied automatically — you must tick these boxes every year.
For everything you need to know about the S1, see our S1 guide.
The RFR-Based Reduction for Pension Income
For non-S1 holders with pension income, the social charges rate is not fixed at 9.1%. It depends on your RFR (Revenu Fiscal de Référence) from two years prior — your household reference income figure from year N-2.
| Rate Type | Total Rate | Composition |
|---|---|---|
| Exempt | 0% | No charges due |
| Reduced | 4.3% | 3.8% CSG + 0.5% CRDS |
| Median | 7.4% | 6.6% CSG + 0.5% CRDS + 0.3% CASA |
| Standard | 9.1% | 8.3% CSG + 0.5% CRDS + 0.3% CASA |
The same threshold table applies to all pension types — State Pension, private pension, and occupational pension — as well as unemployment benefits.
Current thresholds are published annually on impots.gouv.fr and on the RFR thresholds section of the Taxpert data page →. For the 2026 declaration, the RFR used is from your 2024 Avis d'Impôt.
A Tax Saving Most People Miss
If you choose the sliding scale instead of the flat tax on your investment or rental income, part of the social charges you paid this year can be subtracted from your taxable income next year — which reduces next year's income tax bill.
It works like this: France allows you to knock a slice of what you paid in social charges off your income before calculating tax the following year.
The slice depends on your income type:
- Investment and rental income: 6.8% of your gross income can be subtracted
- Pension income at the standard rate: 5.9% can be subtracted
- Pension income at the reduced rate: the full amount you paid can be subtracted
This only applies if you chose the sliding scale (box 2OP). If you used the flat tax, this saving isn't available. It is one of the additional reasons the sliding (progressive) scale can be more attractive for those on lower marginal rates. See our guide to PFU vs progressive tax.
Where Social Charges Are Declared on Your Return
Social charges are handled in several places depending on income type:
Form 2047, Section 9 — mandatory for foreign-source pensions and salaries. This is where you explicitly declare pension income for social charges purposes based on your RFR band.
Form 2042-C, Section 8 — boxes 8TQ to 8SB, where totals from Section 9 are transferred.
Investment and rental income — social charges on dividends, interest, capital gains, and rental income are worked out automatically by the tax office, based on the income figures you enter in the normal boxes. You don't need to do anything extra — unless you hold an S1, in which case you need to tick box 8SH or 8SI to claim your reduced rate. Without that tick, the full rate is applied regardless of your S1 status.
The most important thing to remember: for pension income, the social charges calculation is not automatic. You must explicitly declare it in Form 2047 Section 9 and transfer the totals to Form 2042-C. If you skip this section, the tax office does not calculate social charges on your pension — and they may come back for up to three years of backdated assessments.
Common Mistakes with Social Charges
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Not declaring pension income for social charges at all. Social charges on pension income are not calculated automatically — you must complete Form 2047 Section 9 explicitly. Many declarers skip this section and years later receive an assessment for up to three years of backdated cotisations. Three years of unpaid charges on pension income is a serious bill.
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Applying income tax allowances to the social charges calculation. Social charges are always due on 100% of gross income — regardless of the allowances that apply for income tax purposes. The 40% dividend allowance and the 50% rental allowance reduce your taxable income for income tax only. Apply them to your social charges calculation and you will underpay.
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Not ticking 8SH/8SI despite having an S1. The S1 exemption is not applied automatically. CPAM and the tax office do not communicate. If you do not tick these boxes every year, you pay the full rate regardless of your S1 status.
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Assuming Government Service Pension income attracts social charges. UK Government Service Pensions are entirely exempt from French social charges under the treaty — not because of an S1, but because the UK has the sole taxing right under Article 19. The exemption is handled through Box 8TK on Form 2042, not through the social charges declaration route. See our UK Government Service Pension guide.
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Missing the CSG deductible. If you paid CSG at the standard rate last year on pension income, or opted for the progressive scale on investment income, a deductible amount appears on your Avis d'Impôt. Subtract it from your taxable income this year before entering figures in the income boxes. This reduces income tax only — social charges are still calculated on the gross amount.
Treaty Reference
The exemption of S1 holders from CSG and CRDS on wealth income operates under EC Regulation 883/2004 on the coordination of social security systems, as retained under the UK-EU Withdrawal Agreement (2019). The increase in CSG from 9.2% to 10.6% on investment income was introduced by Article 12 of Law No. 2025-1403 (Social Security Financing Act for 2026), which created a "financial contribution for autonomy" applied retroactively to 2025 investment income.
Frequently Asked Questions
What are social charges in France?
Social charges are a second set of charges on top of income tax, used to fund France's healthcare and benefits system. They apply to most types of income — even if your income is low enough that you owe no income tax at all, you may still owe social charges.
What is the social charges rate in France in 2026?
It depends on your income type. Investment income (dividends and interest) is charged at 18.6%. Rental income is charged at 17.2%. Pension income is charged at up to 9.1% — but lower rates apply if your household income is below certain thresholds. If you hold an S1, your rates are significantly lower: 7.5% on investment and rental income, and nothing on pension income.
Do I pay social charges if I have an S1?
On pension income — no, you pay nothing. On investment and rental income, you pay a reduced rate of 7.5% instead of the full rate. But you have to claim it every year by ticking boxes 8SH or 8SI on your tax return. It isn't applied automatically.
Why did social charges increase in 2026?
France added a new charge on investment income in 2026, raising the total rate on dividends and interest from 17.2% to 18.6%. The increase applies to 2025 income declared in spring 2026 — so if you were expecting 17.2%, your bill will be slightly higher than anticipated. Rental income was not affected and stays at 17.2%.
Do I have to declare social charges on my pension income separately?
Yes — and this is one of the most important points in this guide. Social charges on pension income are not worked out automatically. You have to declare them yourself in a specific section of your tax return, based on your household income from two years ago. If you skip it, the tax office can come back with a backdated bill covering up to three years.
Are there any ways to reduce my tax bill?
Yes — a few, depending on your situation:
If you hold an S1: Make sure you tick boxes 8SH or 8SI every year. This cuts your rate on investment and rental income from 18.6% to 7.5%, and eliminates social charges on pension income entirely.
If your household income is modest: You may qualify for a reduced rate on pension income — or pay nothing at all. The rate is based on your household income from two years ago.
If you chose the sliding scale instead of the flat tax: Part of the social charges you paid this year can be subtracted from your taxable income next year, reducing your income tax bill.
None of these are applied automatically — you have to claim them.