Taxation of Couples

Taxation of Couples

9th Sept 2025

Since September 1st, France’s pay-as-you-earn income tax system has undergone a major overhaul for married and civil union couples.

Default Individualised Rates

Previously, couples were subject to a single tax rate - known as prélèvement à la source - applied on their combined income. For most international couples’ resident in France the deduction is based on their income from the previous year.

As of the beginning of this month, each spouse is automatically assigned a personalised rate reflecting their individual earnings. The ability to use separate rates has always been available but rarely used; now it is the default setting.

The reform will not increase the taxation of married or civil union couples. They will pay the same total amount of tax as they would under the household rate. However, the spouse with the higher income will see their tax rate increase, while the rate for the lower-earning spouse will decrease.

The goal is to correct inequalities in tax contributions within couples, especially when income disparities are significant. “The individualised rate allows each member of the household to pay tax proportional to their own income,” according to a statement from the Ministry of the Economy.

To illustrate how the new system operates, the tax office provided the following example:

“Julia and Karim, a childless couple, earn €1,600 and €3,500 per month, respectively. Under the common levy system, they were subject to a tax rate of 5.8% (both on Julia’s and Karim’s income). On the salary slip, Julia was therefore charged monthly at €93, Karim of €203, for a total of €296.

By switching to the individualised tax scheme, the tax rate of Julia and Karim is adjusted according to their respective salaries: the levy rate applied on Julia’s payroll drops to 0.4%, and that of Karim rises to 8.3%. On the salary slip, Julia will therefore be drawn off €6 per month, Karim of €290, for a total of the same amount of €296.”

Employers are now applying these new rates, directly affecting monthly net income. While joint income (such as rental income or alimony) remains subject to the household’s overall rate, personal salaries and pensions are now taxed individually.

Supporters of the reform view it as a significant social advancement. “This allows women, who often earn less, to no longer be subject to a tax rate calculated on the couple’s combined income, which can be very disadvantageous,” notes Élodie Lemaire, an economist specialising in tax policy, in Les Échos newspaper. An INSEE study shows that in 60% of couples, women earn less than their partners. With this reform, their tax rate will automatically decrease, improving their monthly purchasing power.

However, some experts warn of unintended consequences. “This individualisation could complicate household budget management, especially for couples who pool their resources,” cautions Jean-Marc Daniel, an economics professor, in Le Figaro. While the total tax owed by the couple remains unchanged, its distribution may create imbalances in household cash flow, particularly if one spouse covers most daily expenses.

A Choice Remains

In response to these concerns, the government has included a safeguard: couples can opt to retain the joint rate.

According to the latest DGFiP data, 1.8 million households made this choice before the June 5, 2025 deadline. For others, the tax authority sent an email detailing the reform and how to revert to the joint rate if desired.

The DGFiP has stated that “Affected users can change their option at any time via their personal account on impots.gouv.fr,”. This flexibility allows couples to adjust their tax withholding based on changes in their family or professional situation.

To help couples understand the impact, the tax website offers a simulator to compare both systems. “We encourage all taxpayers to use this tool before making a decision,” a DGFiP spokesperson stated.

For couples with highly variable incomes (such as freelancers or intermittent workers), the tax authority also offers a neutral rate, which does not consider household status. This option avoids surprises in case of sudden income changes.

Related Reading:

• Guide to Taxes in France

• French Tax News