Déductions

The term déductions refers to reductions in taxable income that are permitted by law in France. They are applied at an earlier stage of the tax calculation, lowering the base on which the income tax rate is applied. Déductions are distinct from abatements, which are direct reductions of the tax itself, and from exemptions, which remove certain types or amounts of income altogether.

In French tax legislation there are several categories of deductions. Ordinary expenses linked to professional activity—including travel, office supplies, and a proportion of home office costs—can be deducted if they are necessary for earning the income. Professional expenses that are optional and exceed a flat‑rate deduction of 10 % can be entered in full. Other deductions cover specific categories such as the cost of dependent childcare, contributions to certain retirement plans, unions or professional associations, and more.

Personal deductions include a standard lifestyle deduction, often called the “lifestyle forfaitaire”, which in 2024 stands at €23,000 for a single taxpayer and increases by €1,800 for each additional qualifying spouse or child. Certain educational or training expenses qualify for deductions when they are directly related to a job or professional advancement.

Deductions are claimed through the annual logbook or via statements from employers or financial institutions, and must be supported by receipts or invoices. The tax return form lists specific fields for each deduction type; the taxable income is then derived by subtracting the total deductions from the gross income. The resulting figure determines the tax amount at the applicable marginal rate, which is progressive in France, ranging from 0 % to 45 %.