Taxes

Taxes

The French tax system is based on several levers:

  • The income tax is progressive and based on a declaration filed annually by each household.
  • The value added tax (VAT) applies to all consumer spending.
  • Social contributions are distinct from taxes because they are allocated directly to financing the social protection system.

Local governments also levy annual taxes. The housing tax (for owners and tenants) and property tax (for owners only) are used to finance the local operating budget. Other taxes include the trash collection tax and the television license fee.