Social Charges in France: CSG, CRDS and How They Affect UK Expats (2026)

Social charges are France's second layer of tax — separate from income tax, calculated differently, and easy to get wrong. For UK expats with pensions, savings, or rental income, they can add up to 18.6% on top of your income tax bill. This guide explains exactly what they are, which rates apply to which income, and the mistakes that lead to years of backdated assessments.

Most UK expats who move to France understand that they will pay income tax here. What catches many off guard is that France also levies a second set of charges on most types of income — called social charges (prélèvements sociaux) — specifically to fund the French social protection system. Healthcare, family benefits, retirement — these are funded separately from general tax revenue, and almost everyone benefiting from the French system is expected to contribute.

Even if your income is low enough to result in 0% income tax, you may still owe social charges. They are not a subset of income tax — they are a parallel obligation.

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 Taxpert data page.

Which Income Types Attract Social Charges — and at What Rate

Different income types attract different rates, and 2026 introduced a notable change: the CSG on investment income (dividends and interest) increased from 9.2% to 10.6%, raising the total rate for those income types to 18.6%. Rental income and property gains remain at 17.2%.

Investment Income — 18.6%

Dividends, interest, and capital gains on securities are subject to 18.6% in 2026:

• CSG: 10.6%
• CRDS: 0.5%
• Solidarity Levy: 7.5%

This is the "two-speed" change introduced in 2026. If you received investment income in 2025 and were expecting 17.2%, note that the rate increased retroactively — it applies to 2025 income declared in spring 2026.

Rental Income — 17.2%

Furnished and unfurnished rental income is subject to 17.2% on the taxable profit:

• CSG: 9.2%
• CRDS: 0.5%
• Solidarity Levy: 7.5%

Pension Income — Up to 9.1% (non-S1 holders)

Pension income is subject to lower social charges than investment income. The standard rate for non-S1 holders is 9.1%:

• CSG: 8.3%
• CRDS: 0.5%
• CASA: 0.3%

However — and this is critical — social charges on pension income are not calculated automatically. You must declare them explicitly based on your RFR (Revenu Fiscal de Référence) from two years prior. More on this below.

Important note: UK Government Service Pensions (civil service, NHS, armed forces, teachers) are generally exempt from French social charges under the France-UK Double Taxation Agreement. See our guide to UK Government Service Pensions for detail.

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 — the parts that fund healthcare and social debt. You pay only the 7.5% solidarity levy on wealth income.

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.

If your RFR is below certain thresholds, you may qualify for a reduced or zero rate:

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 Taxpert data page. For the 2026 declaration, the RFR used is from your 2024 Avis d'Impôt.

The CSG Deductible

If you receive investment or rental income and choose the progressive tax scale (by ticking box 2OP) instead of the flat tax (PFU), a portion of the CSG you pay becomes deductible from your taxable income the following year.

The deductible amount varies depending on the type of income:

• Investment & Rental Income: The deductible rate is 6.8%. Even with the 2026 increase in social charges for dividends, this deductible portion remains capped at 6.8%.
• Standard Pension Income (Normal Rate): If you pay the full 9.1% social charges on your pension, the deductible portion is 5.9%.
• Reduced Pension Income: For those qualifying for the reduced 3.8% rate, the entire 3.8% is deductible.

You cannot claim this deduction if you stick with the flat tax (PFU). It only triggers if you opt for the progressive scale. We cover this in full in 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.

Wealth income (rental, dividends, interest, capital gains) — social charges are calculated automatically by the tax office based on the gross income declared in boxes 2DC, 2TR, 3VG and the rental income boxes. You do not need a separate social charges box for these — unless you are claiming an S1 exemption via 8SH/8SI.

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 (based on your RFR) and transfer to the relevant boxes on 2042. 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

1. 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, assume social charges have been handled, and years later receive an assessment for up to three years of backdated cotisations.

2. 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.

3. 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.

4. Assuming Government Service Pension income attracts social charges. UK Government Service Pensions are generally exempt under the France-UK treaty. Declaring social charges on them is an overpayment. Box 8TK handles this process.

5. 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. Many people miss this every year.

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 (prélèvements sociaux) are a set of levies separate from income tax, used to fund France's social protection system — healthcare, family benefits, and retirement. They are composed of the CSG, CRDS, and solidarity levy, and apply to most types of income. Even if you owe 0% income tax, you may still owe social charges.

What is the social charges rate in France in 2026?

It depends on income type. Investment income (dividends, interest) is subject to 18.6% following the CSG increase in 2026. Rental income and property gains are subject to 17.2%. Pension income is subject to up to 9.1% for non-S1 holders, with reduced rates available based on household income. S1 holders pay only 7.5% on investment and rental income, and 0% on pension income.

Do I pay social charges if I have an S1?

On pension income — no, you are fully exempt. On investment and rental income, you pay a reduced solidarity levy of 7.5% instead of the full rate. To claim this you must tick boxes 8SH/8SI on Form 2042-C every year — it is not applied automatically.

Why did social charges increase in 2026?

The CSG on investment income (dividends and interest) increased from 9.2% to 10.6% under the Social Security Financing Act for 2026, which introduced a "financial contribution for autonomy." This raised the total social charges rate on those income types from 17.2% to 18.6%. The increase applies retroactively to 2025 income declared in spring 2026. Rental income and property gains were not affected and remain at 17.2%.

Do I have to declare social charges on my pension income separately?

Yes — this is one of the most important points in this guide. Social charges on pension income are not calculated automatically by the tax office. You must explicitly declare them in Form 2047, Section 9, based on your RFR from two years prior and then transfer to 2042-C. If you skip this section, the tax office may assess backdated charges for up to three years.

Can I deduct any of my social charges from next year's income tax?

Yes — if you opted for the progressive tax scale (box 2OP) rather than the flat tax on investment income, 6.8% of the CSG you paid is deductible from your taxable income the following year. For pension income taxed at the reduced 3.8% rate, the full 3.8% is deductible. This deduction is not available if you used the flat tax (PFU).

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