Livret A and PEL: which savings are taxed
Livret A interest is free of income tax and social contributions. PEL tax depends on when the plan was opened: for plans opened since 2018 a PFU every year — 30% on 2025 interest, 31.4% on interest credited from 2026 (17.2% → 18.6% social contributions), and 12 years free of income tax for older plans.
Interest on a Livret A is free of both income tax and social contributions (exonérés d'impôt sur le revenu et de prélèvements sociaux). A PEL depends on its opening date. Plans opened since 2018 pay the flat-rate levy (PFU) every year: 30% (12.8% + 17.2%) on 2025 interest, 31.4% (12.8% + 18.6%) from 2026. Older plans: interest of the first 12 years is income-tax free.
Summary by product
| Product and opening date | Income tax (impôt sur le revenu) | Social contributions (prélèvements sociaux) | Source |
|---|---|---|---|
| Livret A | Exempt | Exempt | service-public F2365 |
| PEL opened on or after 1 January 2018 | Every year, as part of the PFU: 12.8% | Every year, as part of the PFU: 17.2% on interest credited in 2025 (30% PFU in total); 18.6% from 1 January 2026 (31.4%) | service-public F16140; loi 2025-1403 art. 12 |
| PEL opened between 1 March 2011 and the end of 2017 | Exempt on interest for the first 12 years, taxed from year 13 | Every year from the first year: 17.2% on the tax-free interest of the first 12 years; from year 13, 18.6% on interest credited from 2026 | service-public F16140; impots.gouv |
| PEL opened before 1 March 2011 | Exempt on interest for the first 12 years, taxed from year 13 | For the first 10 years, taken in one go on the 10th anniversary or on closure if sooner; every year from year 11. 17.2% on the tax-free interest of the first 12 years; from year 13, 18.6% on interest credited from 2026 | service-public F16140; impots.gouv |
Livret A
Service-public gives a direct answer on whether Livret A interest is taxed: it is free of income tax and social contributions. The interest rate is set by the government.
Anyone can open a Livret A. There are no conditions on age, nationality or tax residence in France (résidence fiscale en France). Each person may hold only one; having a second one carries a penalty of 2% of the balance on it.
PEL opened on or after 1 January 2018
Interest on these plans is subject to income tax and social contributions. Each year it is taxed under the single flat-rate levy (prélèvement forfaitaire unique, PFU, also known as the flat tax). The bank deducts the PFU: income tax at a flat 12.8% plus social contributions — 17.2% on interest credited in 2025 (30% in total) and 18.6% on interest credited from 1 January 2026 (31.4% in total). The exemption that keeps 17.2% applies only to tax-free interest of plans opened before 2018, so it does not cover these plans.
Every year the bank sends a statement (relevé) showing the interest earned on the PEL and the advance payment it has deducted (prélèvement forfaitaire non libératoire).
Plans opened on or after 1 January 2018 no longer receive the government bonus (prime d'État).
PEL opened before 2018
Service-public distinguishes between two opening dates here.
- Opened before 1 March 2011. Interest earned in the first 12 years is free of income tax; from year 13 it is taxed. Social contributions for the first 10 years are first deducted on the plan's 10th anniversary, or on closure if that comes sooner. From year 11 they are deducted every year as interest is credited.
- Opened on or after 1 March 2011 (and before 2018). Interest earned in the first 12 years is free of income tax; from year 13 it is taxed. Social contributions are deducted every year, starting from the first year.
Since 1 January 2026 the general rate of social contributions on investment income is 18.6% (loi 2025-1403, art. 12). Interest that is free of income tax on a PEL or CEL opened before 2018 keeps the former 17.2% rate (impots.gouv, «Les revenus mobiliers», updated 8 April 2026). On older plans, the government bonus and its top-up (surprime) are free of income tax but subject to social contributions.
What can change the answer
- When the PEL was opened. The opening date sets both the interest rate and the tax treatment, with three different sets of rules.
- How old the plan is. For a PEL opened before 2018, income tax starts to apply from year 13.
- The government bonus. Only plans opened before 2018 receive it, and it is subject to social contributions.
About Fiscly
Newcomers often cannot tell which French savings products are taxed: the Livret A and the PEL follow different rules, and for a PEL the rules also depend on when it was opened. We went through this ourselves and built Fiscly for ourselves and for others who have moved here.
A questionnaire in six languages that ends with a step-by-step guide to the declaration.
This material is for general information and does not replace individual advice.
Fiscly is an educational tool to help you understand the French tax system. It is not a substitute for professional tax advice. Tax situations are individual — always verify with impots.gouv.fr or a qualified accountant (expert-comptable) for your specific case.