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Generic Tax Name Payroll tax
Tax name in the national language Taxe sur les salaires
Tax name in English Payroll tax
Member State FR-France
Tax in force since 1968/01/01
If abolished, date on which the tax ceases to apply
Business version date 2015/01/01
Version date 2015/03/24
This file was last updated on

Type of tax
Direct taxes Personal income tax
Corporate income tax

Indirect taxes VAT
Excise duty (EU harmonised)
Alcoholic beverages
Energy products and electricity
Manufactured tobacco

Social security contribution Employers
Legal base

Articles 231 to 231 bis U and 1679, 1679A, 1679 bis of the General Tax Code (Code général des impôts).

Who sets
The tax rate is set by

The tax base is set by

The reliefs are set by



In 2015, the sole beneficiary of the payroll tax is the social security. However, in previous years, the tax has sometimes been shared between the social security and the central authority.

Geographical Scope


The payroll tax is levied on employers who are not liable for VAT or who have not been liable for VAT on at least 90% of their turnover during the previous year.

The payroll tax is therefore payable by a limited number of employers; the main taxable entities are:

  • banks and insurance companies;
  • members of certain professions: general insurance agents and the medical and paramedical professions;
  • hospitals and clinics;
  • social welfare bodies;
  • associations and other non‑profit organisations.
Tax object and basis of assessment

The payroll tax is levied on all gross remunerations (i.e. prior to the deduction of the employee's national insurance contribution), including benefits in kind. The taxe base has been broadened by the Finance Act for the social security administration (loi de financement de la sécurité sociale pour 2013) and now includes shares.

For employers who are partially liable for VAT, payroll tax is only payable in the ratio of turnover or revenue not subject to VAT (i.e. not warranting deduction of VAT, in other words, operations outside the scope of VAT or within the scope of VAT but exempted) to total turnover or revenue.


Deductions, Allowances, Credits, Exemptions


The State in respect of wages and salaries paid from the national budget; local authorities, with the exception of certain explicitly designated bodies; employers whose turnover or revenues do not exceed € 32,900 (services) or € 82,200 (purchase/resale).

The tax is not payable if its annual amount does not exceed € 1,200. When this amount exceeds € 1,200 but does not exceed € 2,040, a discount equal to three-quarters of the difference between € 2,040 and this amount is applicable.

Since January 1st, 2014, the payroll tax paid by associations is payable only for the portion of the amount exceeding a sum fixed at € 20,161 (this sum was fixed at € 6,002 before January 1st, 2014). Indeed, the Amending finance law 2012 aimed at reducing the payroll tax payed by small structures, such as associations : because of their non-profit nature, these organizations are normally not subject to corporation tax, and therefore could not benefit from the tax credit for competitiveness and employment" implemented in 2013. This measure has an estimated cost of € 300 million.

Rate(s) Structure

Taxable percentage of pay :

  • Individual annual pay up to € 7,666: 4.25%
  • Fraction of individual annual pay between € 7,666 and € 15,308: 8.50%
  • Fraction of individual annual pay between € 15,308 and € 151,208: 13.60%
  • Fraction of individual annual pay in excess of € 151,208: 20%

The highest rate (20 %) has been introduced in January 2013 (loi de financement de la sécurité sociale pour 2013).

Rates are lower in overseas departments. 

Tax due date

The assessment of the payroll tax is liquided monthly, by quaterly down-payments, or by one payment (depending of the amount to pay).

Tax collector

The payroll tax has to be paid to the Tax General Directorate's accountant (comptable de la Direction Générale des Finances Publiques).

Special features

Economic function


Environmental taxes

Tax revenue
ESA95 code d29cj

Annual tax revenue (millions)
Tax revenue as % of GDP
Tax revenue as % of total tax revenue
2012 EUR
2011 EUR
2010 EUR
2009 EUR
2008 11,341.00 EUR 0.57
2007 10,375.00 EUR 0.53
2006 9,812.00 EUR 0.53
2005 9,312.00 EUR 0.53
2004 9,008.00 EUR 0.53
2003 8,539.00 EUR 0.52
2002 8,334.00 EUR 0.52
2001 8,018.00 EUR 0.52
2000 7,589.00 EUR 0.51