Tax Glossary
Plain-language explanations of the French tax terms you'll meet while declaring.
Revenu Fiscal de Référence (RFR)
Your 'reference tax income' — a figure on your tax notice that sums almost all household income (net of certain deductions). France uses it to decide eligibility for means-tested benefits, local-tax exemptions and certain subsidies. It is usually higher than your taxable income.
Official sourceTaux Marginal d'Imposition (TMI)
Your marginal tax-bracket rate — the rate applied to the last euro of taxable income (0%, 11%, 30%, 41% or 45% in 2025). It is NOT the rate on your whole income; it only tells you how much tax an extra euro (or deduction) is worth.
Official sourceQuotient familial
The mechanism that divides your household's taxable income by your number of 'parts' before applying the tax brackets, then multiplies the result back. It lowers tax for families with children or dependants. The benefit per half-part is capped (plafonnement du quotient familial).
Official sourceParts fiscales
Household 'shares' used by the quotient familial. A single person = 1 part; a married/PACS couple = 2; each of the first two children adds 0.5; the third and beyond add 1 each. More parts generally means lower tax.
Official sourceFoyer fiscal
Your 'tax household' — the people declared together on one return. Usually you (and spouse/PACS partner if jointly assessed) plus dependent children. The whole foyer's income is pooled and taxed together.
Official sourceDomicile fiscal (tax residence)
Where you are tax-resident. You are French tax-resident if your home or main stay is in France, your main professional activity is in France, or France is the centre of your economic interests. Residents are taxed on worldwide income; non-residents only on French-source income. Tax treaties can override these rules.
Official sourcePrélèvement à la source (PAS)
Pay-as-you-earn withholding. Tax is taken directly from salary/pension each month, or via instalments (acomptes) for self-employed and rental income. The annual declaration then reconciles what was withheld against what is actually owed.
Official sourceAvis d'imposition
Your official tax notice, issued after you declare. It shows your taxable income, your RFR, the tax due (or refund) and your number of parts. Often requested as proof of income for housing, loans and administrative procedures.
Official sourceCrédit d'impôt
A tax credit that reduces your tax and, crucially, is REFUNDED if it exceeds the tax you owe (or if you owe nothing). Examples: childcare costs, home-employment of staff. Contrast with a réduction d'impôt, which is not refundable.
Official sourceRéduction d'impôt
A tax reduction that lowers your tax but is NOT refunded if it is larger than the tax due — any excess is simply lost. Examples: certain charitable donations, some rental-investment schemes. Contrast with a crédit d'impôt (refundable).
Official sourceAbattement
A standard deduction subtracted from a category of income before tax. The best-known is the automatic 10% deduction on salaries and pensions; there are also fixed abattements for micro-entreprise and certain rental regimes.
Official sourceFrais réels (actual expenses)
Instead of the automatic 10% salary deduction, you may deduct your real, documented work expenses (commuting, meals, training, etc.). Choose this only if your actual costs exceed the 10% allowance, and keep all supporting documents.
Official sourceFormulaire 2042
The main income-tax return that every household files. Schedules attach to it for specific situations: 2042-C (complementary), 2042-RICI (credits/reductions), 2044 (rental income), 2047 (foreign income) and so on.
Official sourceFormulaire 2047
The schedule for declaring foreign-source income (foreign salary, pensions, dividends, rents). Amounts are reported here and then carried over to the main 2042. Required even when a tax treaty exempts the income, to compute the effective rate.
Official sourceFormulaire 3916 / 3916-bis
The declaration of foreign bank, e-money and crypto accounts held, opened or closed during the year. One form per account. Failure to declare carries a fixed penalty per account, so this is a frequent trap for expats.
Official sourceFormulaire 2086
The schedule for reporting capital gains and losses on digital assets (crypto). You list each disposal during the year; the net gain is taxed, generally under the flat tax (PFU).
Official sourceConvention fiscale (tax treaty)
A bilateral agreement between France and another country that decides which state may tax a given income and how double taxation is avoided (exemption or tax credit). Treaties override domestic rules — always check the treaty for your country.
Official sourceRégime des impatriés
A favourable regime for people recruited from abroad to work in France. It can exempt part of salary (the 'impatriation bonus') and some foreign-source income from tax for up to 8 years, under conditions on prior non-residence.
Official sourceMicro-entreprise / Auto-entrepreneur
A simplified self-employment regime with turnover ceilings. Tax is computed on turnover after a flat abattement (71% sales, 50% commercial services, 34% liberal professions), so no separate expense accounting is needed.
Official sourceVersement libératoire
An option for eligible micro-entrepreneurs to pay income tax as a small fixed percentage of turnover each month/quarter, alongside social contributions, instead of via the progressive scale. Worthwhile only below a certain RFR threshold.
Official sourcePrélèvement Forfaitaire Unique (PFU / flat tax)
A single 30% flat rate on most investment income (interest, dividends, capital gains) — 12.8% income tax plus 17.2% social levies. You may instead opt for the progressive scale if it is more favourable, but the option applies to all such income.
Official sourceRevenus fonciers
Income from renting out unfurnished property. Under the micro-foncier regime a 30% abattement applies (below a turnover ceiling); otherwise the régime réel lets you deduct actual charges and carry forward losses. Declared on form 2044.
Official sourceLoueur Meublé Non Professionnel (LMNP)
Status for renting out FURNISHED property as a non-professional. Income is taxed as BIC, not as revenus fonciers, with either a 50% micro-BIC abattement or the régime réel (which allows depreciation of the property).
Official sourceSociété Civile Immobilière (SCI)
A civil company used to hold and manage real estate jointly (often within a family). By default it is 'transparent' — partners declare their share of rental income on their own returns — unless it opts for corporate tax (IS).
Official sourceImpôt sur la Fortune Immobilière (IFI)
An annual wealth tax on real-estate assets when their net taxable value exceeds €1.3 million. It replaced the old ISF and concerns property holdings only, not financial investments.
Official sourceNuméro fiscal (SPI)
Your 13-digit French tax identification number, found on any tax notice or your impots.gouv.fr account. You need it to create your online space and to file. First-time filers from abroad request one from the tax office.
Official sourcePlus-value
A capital gain — the profit when you sell an asset (property, securities, crypto) for more than you paid. Real-estate gains on your main home are exempt; other property gains are taxed with allowances that grow with years of ownership.
Official sourcePension alimentaire (maintenance)
Court-ordered or legally-due support paid to a child, ex-spouse or parent. The payer can deduct it from taxable income (within limits) and the recipient must declare it as income. Keep proof of payment.
Official sourceFiscly 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.