What is the withholding tax?
Source at the source of income tax: definition
The deduction from the source of income tax came into force on January 1, 2019, in accordance with the order of September 22, 2017. This tax recovery consists in leaving each month the amount due on the pay sheet, according to a levy rate calculated by the tax administration. Thus, payment is spread over twelve months and the one year offset deleted. The tax automatically adapts to the amount of income received. The taxpayer has only to declare his income each year in the spring.
A recovery taken by the employer or financial institutions
The tax levy is taken by the one who pays income, so it may be:
- employer for treatments and wages;
- of the pension fund for retirees;
- financial institutions and banking establishments for financial income such as interests or dividends.
What are the income taken at source?
The source deduction applies to the following income:
How does source sample work?
A deduction on taxpayer’s income
Since January 1, 2019, income tax collection has been taken thanks to the withholding tax (PAS). Its objective is to pay the tax as close as possible to the collection of taxpayer’s income. Each month, the employer must deduct from the salary paid to the employee, the amount of the levy which corresponds to a common, individualized or neutral rate.
Note : If the taxpayer situation changes during the year, it must inform the taxes.
A deduction according to the rate set by the tax administration
The establishment which collects the withholding tax can use the rate communicated to it by the tax administration. The latter is calculated from the elements provided on the income tax return of the previous year. The employee can request the application of a neutral rate if he does not wish to share his personalized rate with his employer. By default, it is generally higher. After applying this rate, the collecting body deduces the amount of the withholding tax at the source of the income concerned before paying them to the beneficiary.
Note : For retired persons, income tax is deducted from the source by pension funds according to the rate calculated by the tax administration.
What sample at source for married or PACS couples?
Individual sample rate for married or PACS couples since September 1, 2025
Since the September 1, 2025the individualized source deduction rate automatically applies to married or PACS couples, and no longer the home rate. This individualized rate thus allows each member of the household to be applied a representative rate of the level of its own income. It is not the amount of the couple’s tax that changes, but its distribution between the spouses.
Taxpayers who have asked in their 2025 income declaration to continue to be levied at the rate calculated according to all the income from the household, will be in 2026.
Example for a childless couple
To better understand here is an example provided by the DGFIP:
Julia and Karim, a childless couple, earn 1,600 and 3,500 euros respectively per month. Or a net taxable income of the household after 10 % reduction of 55,080 euros per year, and a tax payable of 3,574 euros.
Currently, it is the rate of the home that applies, here is 5.8 %here, both on Julia’s income and on those of Karim. On the salary slip, Julia will have a monthly levy of 93 euros and Karim of 203 euros.
With the individualized rate taking into account everyone’s income, the levy rate applied to the Julia pay slip will be 0.4 %, or 6 euros in withholding tax per month and 8.3 % for Karim, or 290 euros of monthly levy, for an overall amount of unchanged tax (296 euros levied each month for the two members of the tax household).
What is the rate of withdrawal from the revenue received in 2025?
Consult your personalized rate on its particular space of the tax site.gouv.fr
The rate is changed each year in September, depending on the income tax return from April to June. It is possible to consult it by connecting to its particular space on impots.gouv.fr.
Rates grid applied in the absence of personalized levels 2026
Taxpayers who have not yet made a tax return have no personalized rate. The administration then applies a default rate, fixed according to the monthly withdrawal base (the amount of the salary) and an annual scale (variant of 0 to 43%). For income received since May 1, 2025, the scale of default rate 2026 in mainland France is as follows:
How to calculate your withholding tax rate?
Tax rate calculation formula
The source deduction rate corresponds to an average tax rate excluding tax reduction. We get it in dividing the amount of income tax by the amount of income Depending on the following calculation formula:
(Total income tax before reductions / tax credits x (taxable income subject to withholding tax / total taxable income) / income subject to withholding tax) x 100
Calculation elements
Total income tax before reductions/tax credits corresponds to income tax from the entire household. Its amount is determined after application of the progressive scale to all the home income and taking into account the family quotient. The amount of the tax can be reduced by the discount (a reduction mechanism for low incomes) and, in some cases, by a Tax reduction based on income level. This calculation intervenes before subtracting the other reductions and tax credits to which the home could claim.
Finally, the total taxable income corresponds in total net income in each category Perceived by all persons of the tax household, whether these income is subject to the withholding tax or not. This amount is calculated before subtracting:
- deficits from previous years,
- The deductible share of the CSG (generalized social contribution),
- deductible loads,
- Specific abatements for the elderly or families with married or dependent children.
Online simulator to estimate the tax rate and monthly tax amount
Taxpayers can estimate the amount of their withdrawal at source thanks to a free and online simulator. Established by the government, it is easy to use. It is enough to indicate the amount of its taxable monthly income and the rate of withdrawal at source. The latter is indicated on the tax notice or accessible via its particular space on impots.gouv.fr.
How do I know if I am taken from the source?
The service “Manage my withdrawal at source” available from the personal account of each taxpayer on the Impot.gouv.fr site lets you know if you are taken from the source. But also to know the rate of your withholding tax and consult the history of all the samples taken by collecting organizations. It is also possible to consult your levy rate on your pay slip.
When and how is the withdrawal rate updated?
Update of the personalized rate each year in September
Each year, its rate is updated in Septemberfollowing the declaration of income made in the spring. If this new rate is no longer in accordance with taxpayer’s income, it can modify it online on the tax site.
A rate change according to the evolution of the salary
If his income has dropped, he thus avoids moving too much tax every month. If its income has increased, it is better to enhance it to avoid having to pay a tax supplement in the fall.
Note : Some taxpayers may receive an SGC sample between September and December. It corresponds to the amount of taxes which has not been set by the withholding tax.
How to change your tax rate?
Taxpayers must notify the tax administration of any change of situation (marriage, birth, divorce, etc.) likely to modify the rate of withholding tax. During the year, employees also have the possibility of modifying, increasing or downwards, their rate of withdrawal at source from their personal space on the tax site.
Source withdrawal and tax credits
Following the implementation of the withholding tax, taxpayers benefiting from a credit or a tax reduction received on January 15, 2025 a deposit of 60% of their tax credits/reductions. It was calculated on the basis of the expenses declared the previous year.
In the spring, during the declaration of income and expenses, the final amount of tax reductions and credits from which taxpayers benefit is calculated and the subject of regularization in the summer.
Each year, the tax administration therefore proceeds to the payment of a deposit in January and regularization in the summer. This regularization leads to two situations: the payment of a credit balance or tax reduction, or to the taxpayer’s bank account of too much paid by Bercy.
